Consumers from all over the country have been waiting for the results of the latest defaults performance of various credit card companies. Now, as a lot has anticipated the news that would be delivered is good. Capital One Financial Corporation or simply known as COFC has finally filed the first report for the month of May, and they bring credit card holders a decrease in the month’s credit card defaults. May had a 9.48 percent down in the percentage of defaults compared to last April’s 9.68 percent. This data were from the debts that the bank believed that will never be paid for considering the country’s current economic state. Apparently, this good news tells banks and consumers alike that the country’s current economic condition, which is badly hurt, will finally start to heal again.
Aside from the bank’s positive default decrease, Capital One also notes that the percentage of the 30 day credit card payment delinquents has decreased. The percentage of these delinquents has dropped from the 5.07 percentage of last April to May’s 4.8 percentage.
However, these positive delinquents and defaults decrease and rates are covered by the negative rates of other areas. The write-off rate for US auto loans have slightly increased from April’s 1.75 percent to May’s 1.87 percent. The rates were also bad for auto loan delinquents which rose from April’s 7.13 percent to May’s 7.75 percent. This information gives us the idea that Americans are more conscious in paying off their credit card debts than in other responsibilities they have monthly. Experts have said that this significant increase on other areas is due to the fact that consumers rely a lot to their credit cards in paying for the expenses from paycheck to paycheck and they cannot afford losing their credit card accounts.
Aside from the good delinquents and defaults results in the United States, Capital One also noted the positive results they yielded in their international operations. International countries including Canada and Britain showed that from the 8.60 percent defaults in April it reduced to 8.21 percent in May. This proves that consumers, not only in the USA, have become more aware of their spending habits that they try and lessen it as well as their debts.
Capital One Financial Corporation is the USA’s third largest issuer of Visa branded cards and is also the country’s fifth largest issuer of MasterCard branded cards. The company specializes in credit cards, home loans, auto loans, and in banking and saving products as well.