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

Credit Card Data Points to Economic Recovery

Credit Card Data Points to Economic Recovery
The content is accurate at the time of publication and is subject to change.

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.

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:

Capital One Partnering Up with Airlines

Posted: November 16, 2018

Starting in December Capital One is partnering with a dozen airlines so their cardholders can transfer their miles and book flights. The new transfer benefit will be available to people with the Capital One Venture One, Spark Miles and ... Continue reading
Getting Quadruple Points with the New Business Gold Card by American Express

Posted: November 12, 2018

American Express is rolling out a new credit card for small businesses, offering quadruple reward points on the two categories in which they spend the most during the month. There are six categories they can earn these enhanced rewards in, ... Continue reading
Now Cardholders can use Ultimate Rewards for Apple Products

Posted: November 9, 2018

Chase credit card holders can now use their rewards to buy Apple products via the new Apple Ultimate Rewards Store. When shopping in the new store people with a Chase Sapphire, Freedom and Ink credit card can use their reward points to pay ... 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 and more 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. That's $600 towards travel!
For Excellent, Good Credit
Earn 2% cash back on purchases: 1% when you buy plus 1% as you pay
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!