American Express Outrivals Rest in Defaults, Late Pays

Credit CardsAmerican Express outshined credit card competitors in November with declines in defaults and late payments – reaching new lows for the year in those two vital categories.
The top credit card issuers today released November’s figures for late payments of 30 days and for defaults, or charge-offs, representing card loans that are deemed uncollectible.
American Express – the top credit card provider based on purchase volume – said defaults slipped to 7.6 percent in November, from 7.8 percent the previous month, the seventh consecutive monthly drop. Card loans overdue by 30 days, decreased to 3.9 percent, from 4.1 percent.
Late payments, or delinquencies, normally signal trends to come in defaults.
JPMorgan Chase, the largest credit card issuer, said defaults edged up to a new high of 8.81 percent, from 8.02 percent in October. Delinquencies, however, slipped to 4.9 percent, from 4.95 percent.
Bank of America, the nation’s second largest credit card issuer, reported defaults dropped to 13 percent, from 13.22 percent. Late payments climbed to 7.69 percent, from 7.59 percent. Citigroup, the third largest card issuer, saw defaults rise to 10.29 percent, from 8.79 percent. Card loans of at least 35 days overdue increased to 5.81 percent, from 5.67 percent.
Both Capital One and Discover Financial Services reported increases in defaults. Capital One charge-offs were up to 9.6 percent, from 9.04 percent. Discover saw defaults rise to 8.98 percent, from 8.54 percent.
Capital One late payments of 30 days increased to 5.87 percent, from 5.72 percent. Discover’s overdue card loans slipped to 5.65 percent, from 5.72 percent.
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