Credit card delinquencies for the nation’s top six lenders fell to their lowest rates since the recent credit crunch hit, according to a report from The Associated Press. This was particularly the case for American Express, typically the card issuer with the best delinquency rate, which saw late payments fall to just 1.6 percent. JPMorgan Chase saw payments that were 30 days or more behind fellto 2.66 percent, the lowest rate seen since 2006. Similarly, Discover’s 2.88 percent delinquency was the best rate it has seen in more than four years.
However, defaults fell as well, and once again American Express led the pack, the report said. The lender saw charged off accounts dropped to 3.2 percent in May, while Discover and Capital One rounded out the top three at 4.82 and 4.84 percent, respectively.
“It continues to paint a good picture,” Michael Dean, a managing director at Fitch Ratings, told the news service.
Continued improvements in credit card delinquencies are typically reflected in the number of defaults banks deal with several months down the line.