Bank of America credit card accounts that became so delinquent they had to be written off as uncollectable fell to 8.84 percent of the roughly 40 million balances it controls in February, down from 9.2 percent in January, according to a report from The Associated Press. This was the lowest rate of default observed by the lender since the same month in 2009.
At the same time, the bank also saw accounts that were 30 days or more behind fall to 5.09 percent, down from the 5.17 percent observed the previous month, the report said. Typically, financial experts see delinquencies of this nature as an indicator of future defaults.
All major lenders have seen significant declines in instances of charge offs and delinquency in the last two years, perhaps indicating that consumers are once again getting a better handle on their finances in the wake of the recession.