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

ADVERTISING DISCLOSURE

ADVERTISING DISCLOSURE:
Credit-Land.com is an independent, advertising-supported web site. Credit-Land.com receives compensation from most 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

Charge-Offs, Late Payments Down for Discover Customers
The content is accurate at the time of publication and is subject to change.
This content is not provided by Citi. Any opinions, analyses, reviews or recommendations expressed here are those of the author’s alone, and have not been reviewed, approved or otherwise endorsed by the Citi.

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.

Disclaimer: This editorial content is not provided or commissioned by the credit card issuer(s). Opinions expressed here are the author's alone, not those of the credit card issuer(s), and have not been reviewed, approved or otherwise endorsed by the credit card issuer(s). Reasonable efforts are made to present accurate information, however all information is presented without warranty. Consult a card's issuing bank for the terms & conditions.
All rates and fees, and other terms and conditions of the products mentioned in this article/post are actual as of the last update date but are subject to change. See the current products' Terms & Conditions on the issuing banks' websites.
Add to Favorites:

Related News:

Discover Cuts Price Protection Benefits from Credit Cards

Posted: August 20, 2018

If you have a Discover card and like the Price Protection benefit that comes with it, you might want to take advantage of it sooner than later. Discover has decided to do away with this benefit. This benefit will no longer be part of your ... Continue reading
The New Citizens Bank Cash Back Plus World MasterCard

Posted: August 17, 2018

Citizens Bank has rolled out their new Cash Back Plus World MasterCard, offering cardholders 1.8% cash back when they go shopping. This is an upgraded version of their previous card. With this new version, cardholders can earn unlimited ... Continue reading
Bonus for the IHG Rewards Club Premier Card Gets an Upgrade

Posted: August 16, 2018

Have you been thinking about applying for the IHG Rewards Club Premier credit card? If so, you may want to check it out now because they just increased the bonus - bumping it up from 80,000 points to 100,000 points. Cardholders get the ... Continue reading
Get the latest news, articles and expert advice delivered to your inbox. It's FREE.
Earn 5% cash back at different places each quarter like gas stations, grocery stores, restaurants, Amazon.com, or wholesale clubs up to the quarterly maximum each time you activate.
For Excellent, Good Credit
INTRO OFFER: Discover will match ALL the Miles you've earned at the end of your first year, automatically. For example, if you earn 30,000 Miles, you get 60,000 Miles.
For Excellent, Good Credit
0% Intro APR on Balance Transfers and Purchases for 18 months. After that, the variable APR will be 15.74% - 25.74% based on your creditworthiness
For Excellent, Good Credit
You've successfully subscribed!

Please specify the following:All these fields are optional

Your Credit History
Themes you are interested in:

By providing this information you help us make our news letters more useful and informative. Thank you!