Capital One reports improved credit card behavior

Capital One Financial, one of the nation’s six largest credit card issuers, continued a series of strong reports from the industry by announcing that consumers reduced both charge offs and delinquencies to the company in January.

The company saw its charge off rate – credit card debt the company does not think it will be reimbursed for – fall to 6.79 percent during the month, down from the 7.01 percent observed in December.

Capital One also saw declines in auto loan charge offs, as this figure fell slightly to 2.62 percent, from 2.67 the previous month. Late payments by consumers on outstanding debt also decreased, as 30-day delinquencies fell to 4 percent.

Delinquencies on auto loans also dropped below the 8 percent mark to 7.86 percent. Overall, the increase in revenue collection helped the company report an 85 percent upswing in profits.

In January, every major credit card lender saw reductions in the amount of accounts they wrote off and late payments they received from consumers. This has been the trend in recent years, as many consumers are trying to be fiscally responsible after falling behind during the recession.