Of the three banks reporting April numbers to the Federal Reserve on May 17, only Bank of America reported an increase in the number of charged-off accounts. The bottoming-out of credit card defaults suggests that fewer Americans struggle to pay their balances each month, and that lenders have flushed most toxic debt out of their portfolios.
Capital One enjoys the lowest delinquency rate of the three major lenders, reporting just 5.07% of its accountholders 30 days or more behind on their payments. Discover Card posted a close second, with a 5.2% delinquency rate. Bank of America reported that 6.73% of its cardholders missed one or more minimum payments.
About the Author
Joe Taylor Jr. is an internal business consultant for a Fortune 500 company, who writes about finance, culture, and design. He holds a Bachelor of Science in Communications from Ithaca College.