Credit Card Data Points to Economic Recovery - 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 » Credit Card Data Points to Economic Recovery

Credit Card Data Points to Economic Recovery

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:

Checking Credit Scores May Improve Financial Health

Posted: June 27, 2017

If you have been wondering if you should check your credit score more than once a year, according to a new study by Discover, the answer is yes. The study found that 70% of people, who checked their score on a monthly basis, or even more ... Continue reading
Some Mobile Banking Apps Score Better with Consumers Than Others

Posted: June 26, 2017

With banking and mobile payment apps increasing capturing consumers attention, the new J.D. Power 2017 U.S. Banking App and U.S. Credit Card App Satisfaction Study illustrates that some are doing better with consumers than others. When it ... Continue reading
Interest in Mobile Payments on the Rise

Posted: June 23, 2017

Consumer interest in using connected devices outfitted with payment technology is growing in a market where voice-controlled assistants and wearable devices are becoming part of the cultural landscape, according to a new study by Visa. Continue reading
Get the latest news, articles and expert advice delivered to your inbox. It's FREE.
We'll match all the Miles you've earned at the end of your first year. Bonus Miles - For example, if you earn 30,000 Miles, you get 60,000 Miles.
For Excellent, Good Credit
You could turn $200 into $400 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
For Bad Credit