April Credit Card Data Shows More Improvement

In a strong sign for the recovery of the U.S. economy form the worst downturn in decades, credit card delinquencies fell for the fourth consecutive month in April.

Capital One Financial Corp. (NYSE: COF), American Express Co. (NYSE: AXP), Discover Financial Services (NYSE: DFS), JP Morgan Chase (NYSE: JPM) and Bank of America Corp. (NYSE: BAC) each reported on Monday in regulatory filings that credit card delinquency rates fell, a signal that fewer borrowers will default on debt from credit cards in the coming months.

Default rates fell for Capital One and Discover to the lowest levels this year, while the largest U.S. credit card issuer, reported an increase in defaults in April.

Charge-off rates remained high, but the lower delinquency rates are better barometer of how future loan performance will shake out.

Discover Financial said that its annualized charge-off rate fell to 8.42 percent in April from 8.51 in March, while its 30-day delinquencies dropped to 5.20 percent from 5.39 percent.

Bank of America's charge-off rate increased to 12.71 percent from 12.54 percent, while its delinquency rate dropped from 7.07 percent to 6.73 percent last month.

JP Morgan's charge-off rate fell to 9.03 percent from 9.51 percent, while its delinquency rate dropped from 4.51 percent to 4.4 percent.

Capital One announced that its charge-off rate fell to 9.68 percent from 10.87 percent, with its delinquency rate dropping to 5.07 percent to 5.30 percent.

American Express said it charge-off rate fell to 6.7 percent from 7.5 percent, while its delinquency rate dropped 3.1 percent in April from 3.3 percent.

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