Credit card companies reported a decline in late payments on credit cards for the month of May, indicating that consumers are paying down balances amid economic instability.
On regulatory filings released last Wednesday, six of the nation’s top issuers showed defaults were down, continuing a trend from April’s filings, according to Gamut News.
Bank of America Corporation recorded a credit card default rate change from 8.25 percent in April to 8.03 percent in May, while American Express Company was at 3.5 percent in April and down to 3.2 percent in May, Gamut News reports. Capital One Financial Corporation dropped 13 basis points between the two months and Citibank dropped four. Discover Financial Services recorded a 2.88 percent default rate, the company’s lowest since early 2008.
JPMorgan, the only company to record a slightly higher rate of default from 5.67 percent in May to 5.60 in April, is still at a rate much lower than where they stood in January 2010 at 19.91 percent.
In an Associated Press article, Michael R. Dean, a managing director at Fitch Ratings who tracks the securities backed by credit card balances, said he expects to see defaults continue to drop and expects a plateau or slight uptick toward the end of the year or the beginning of 2012.