Credit Card News
Advertising Disclosure
Credit-Land.com is an independent, advertising-supported web site. Credit-Land.com receives compensation from many credit card issuers whose offers appear on our site. Compensation from our advertising partners impacts how and where their products appear on our site, including, for example, the order in which they may appear within review lists. Credit-Land.com has not reviewed all available credit card offers in the marketplace.
Credit Card Applications » News » Other » Charge-Offs, Late Payments Down for Discover Customers

Charge-Offs, Late Payments Down for Discover Customers

By
Add to Favorites:
Charge-Offs, Late Payments Down for Discover Customers

Discover Financial Services can currently boast having one of the lowest charge-off rates in the entire credit card industry. Loans get written off the books of credit card issuing companies once they are six months overdue.

The total amount of charge-offs recorded by Discover for August was $50.8 million, or 3.6% of balances on an annualized basis, several sources reported. This is down from the $54.4 million that was charged off in July, or 3.83%. As things stand, the company is currently at its lowest charge-off rate since the start of the economic recession.

Delinquency, otherwise known as late payments, is considered to be a rather reliable indication for what can be expected by way of defaults in the remaining months of 2011 still to come.

The Wall Street Journal reported that Fitch Ratings Company said the amount of delinquencies of 60 days or more decreased to 2.15% in August from 2.46%, thereby marking the 19th consecutive monthly decline.

“U.S. consumer credit quality has improved rapidly since the beginning of the year and delinquency trends bode well for further gains,” said Michael Dean, managing director at Fitch Ratings. “We’re at a point now, however, where seasonal factors will likely temper the pace of further collateral improvements for credit-card” asset-backed securities, according to the Wall Street Journal website.

The Associated Press claimed that the improvements were a result of consumers refocusing their efforts towards reducing their outstanding credit card debt. The Federal Reserve released data which indicated that revolving debt, the majority of which is credit cards, shrank in July to $792.5 billion after creeping up the two months prior. Since its peak in late 2008, the total amount of debt that can be attributed to plastic is more than 17% less, including balances settled by cardholders as well as over $75 billion in write offs since 2009 by card issuing companies.

As Discover reported fewer charge-offs, both Citibank and Bank of America claimed higher losses, according to the Fitch Ratings report.

Add to Favorites:

Related News:

USA Technologies & Apple Pay Team Up For Loyalty Programs

By Dar Dowling, Posted: January 16, 2017

If you have ever wondered when you could use Apple Pay with the MORE loyalty program, you no longer have to wonder. It’s on the horizon, with an announcement from USA Technologies, Inc. a payment technology company specializing in ... Continue reading
Ford Integrates Exxon Quickpay into Their Cars

By Dar Dowling, Posted: January 13, 2017

Pull up to the pump, fuel up, and pay directly from you car? Is that really possible? It is with the newly announced integration of the ExxonMobil's Speedpass app into Ford cars. Continue reading
An Upswing in Luxury Travel

By Dar Dowling, Posted: January 12, 2017

Interested in having a concierge-like experience when traveling, or maybe snagging a first class ticket even if you have to pay more in cash or miles? If so you are not alone. Continue reading
Get the latest news, articles and expert advice delivered to your inbox. It's FREE.
Unlimited 1.5x rewards on every purchase, every day. For every $1 you spend, you earn 1.5x Miles.
For Excellent, Good Credit
You could turn $200 into $400 with Cashback Match™. We’ll automatically match all the cash back you earn at the end of your first year. New cardmembers only.
For Excellent, Good Credit
Guaranteed $500 Unsecured Credit Limit
For Bad Credit