Major Credit Card Issuers Report Increase in Delinquencies

October 18, 2011, Written By Lynn Oldshue

Credit card delinquencies, defined as payments late by at least 30 days, increased slightly for five of the top six card issuers in September. While these increases were relatively small, it broke the trend of declining delinquency rates that the industry had recently experienced. It could be a signal that consumers are again struggling to pay down credit card debt and are a higher risk for default in the future.

The growth in late payments may lead banks to set aside more money to prepare for future losses.

On a positive note, all six major credit card issuers reported further declines in the default or charge-off rates.

Here are the September results for the top six credit card issuers:

American Express
The delinquency rate increased to 1.5% in September from 1.4% in August. The charge-off rate was 2.3%, down from 2.7%.

Capital One
The delinquency rate increased to 3.65% in September from 3.43% in August. The charge-offs dropped to 3.9% from 4.1%.

Bank of America
The delinquency rate increased to 3.99% in September from 3.96% in August. The charge-off rate dropped to 5.99% from 6.79%.

Chase
The delinquency rate increased to 2.53% in September from 2.48% in August. The charge-off rate fell to 4.13% from 4.67%

Discover
The delinquency rate increased to 2.5% in September from 2.49% in August. The charge-off rate fell to 3.17% from 3.6%.

Citi
The delinquency rate fell to 3.3% in September from 3.35% in August. The charge-off rate fell to 5.87%, down from 6.92%.


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The information contained within this article was accurate as of October 18, 2011. For up-to-date
information on any of the terms, cards or offers mentioned above, visit the issuer's website.


About Lynn Oldshue

Lynn Oldshue has written personal finance stories for LowCards.com for twelve years. She majored in public relations at Mississippi State University.
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