Charge-Offs, Late Payments Down for Discover... - Other 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

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:

Bank of America and PayPal Strike a Deal

Posted: August 16, 2017

With more and more people interested in making mobile and digital payments, Bank of America and PayPal have inked a new deal paving the way for Bank of America customers to be able to link their credit and debit cards with PayPal and use ... Continue reading
Visa Helping Make Using QR Codes Easier

Posted: August 15, 2017

QR code payment technology is used around the world, and in some parts of the globe it is helping set the stage for a cashless future. In keeping with this trend, Visa has thrown their weight behind supporting and developing new global QR ... Continue reading
U.S. News & World Report Names Best Travel Rewards Programs

Posted: August 14, 2017

For the third year in a row, Alaska Airlines Mileage Plan took the top spot in U.S. News & World Report's 2017-18 Best Travel Rewards Programs rankings, with Delta SkyMiles coming in second. When it comes to hotel rewards programs Marriott ... Continue reading
Get the latest news, articles and expert advice delivered to your inbox. It's FREE.
Match Mile For Mile: We’ll match all the Miles you’ve earned at the end of your first year. For example, if you earn 30,000 Miles, you get 60,000 Miles.
For Excellent, Good Credit
You could turn $150 into $300 with Cashback Match™. Get a dollar-for-dollar match of all the cash back you’ve earned at the end of your first year, automatically.
For Excellent, Good Credit
No Annual Fee. See WebBank/Fingerhut Credit Account Terms.
For Bad Credit