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 » Credit Card Data Points to Economic Recovery

Credit Card Data Points to Economic Recovery

By
Add to Favorites:
Credit Card Data Points to Economic Recovery

After news story and headlines reporting nothing but gloom and doom in the financial sector, it seems as if there is some light at the end of the tunnel. While unemployment rates are high and foreclosure rates don’t seem to be going anywhere either, credit card default rates and late payment rates seem to be on the decline. This, some contemplate, may be an indication that the economy is heading out of the recession and into a period of recovery.

Credit Card Data

According to the Associated Press, more credit card holders paid their credit card bills on time in March 2011 than in the previous few years. Some of the top credit card companies — Bank of America, Chase, Discover, American Express, and Capital One — all report that the overall number of delinquent accounts on record is on the decline. The industry is reporting that the delinquency rate is the lowest it’s been since 2008.

Charge-Offs

Bank of America boasts the biggest improvement in the number of accounts it has had to charge-off. Right along with Bank of America is Discover. Even with it showing the biggest signs of improvement, Bank of America still retains the highest charge-off rate in the industry at 8.18%. American Express brings up the rear with the lowest charge-off rate at 3.7%. This is attributed to the fact that American Express tends to cater to a more affluent demographic.

According to the Federal Reserve, the average charge-off rate for credit card companies reached its highest point in the second quarter of 2010 — 10.9%. By the end of the fourth quarter, however, the average rate declined to 7.7% of credit card accounts in a charge-off status.

Economic Recovery

Analysts and economists use a myriad of factors to determine indications of economic recovery. One of these is the number of credit card account default rates and late payments. While the previous two years have had an increase in the number of accounts in default and that the credit card companies have had to charge off, the decline in the problem accounts is one factor that indicates a possible economic recovery.

Add to Favorites:

Related News:

Citi Card Tracker Unveiled

By Dar Dowling, Posted: December 8, 2016

There is a new feature in town now that Citi credit cardholders in the U.S. can track where their replacement card is every step of the way as it travels to their mailbox. This new feature is available in the Citi Mobile App, whether the ... Continue reading
New Digital Wallet From SDCCU

By Dar Dowling, Posted: December 7, 2016

The San Diego County Credit Union (SDCCU) is rolling out their brand new digital wallet app for iPhone users. With the app people can use their phone to safely do their banking, whether that means using their phones to expedite cash ... Continue reading
Free Pizza on Papa John’s & VISA

By Dar Dowling, Posted: December 6, 2016

Eating pizza while watching a football game is a time-honored American tradition, so it’s not surprising that VISA, has teamed up with Papa John’s to give fans a little more this season. If fans use Visa Checkout they can take advantage of ... Continue reading
Get the latest news, articles and expert advice delivered to your inbox. It's FREE.
Get 0% Intro APR on Balance Transfers and Purchases for 21 months. After that, the APR will be 12.24%-22.24% based upon your creditworthiness.
For Excellent/Good Credit
Earn 1% cash back on gas and grocery purchases. Terms apply.
For Fair Credit
Guaranteed $500 Unsecured Credit Limit
For Bad Credit