Charge-offs headed north, hitting 4.81% in September to a new record for this year. This is the fourth consecutive month that credit card charge-offs have increased. There has been concerns that the mortgage meltdown may have spilled over into the general consumer finance market. During the third quarter Citi reported that charge-offs for bankcard and private label cards declined to 4.41% compared to 4.55% in the prior quarter and 4.26% one-year ago. BofA posted third quarter charge-offs of 4.86%, compared to 5.20% in the prior quarter and 4.18% one-year ago. Capital One reported that the net charge-off rate for U.S. credit cards was 4.13% for the third quarter, compared to 3.73% for the second quarter and 3.39% one-year ago.
| CHARGE-OFFS |
|---|
| Jan 07: | 4.33% |
|---|
| Feb 07: | 4.39% |
|---|
| Mar 07: | 4.44% |
|---|
| Apr 07: | 4.60% |
|---|
| May 07: | 4.65% |
|---|
| Jun 07: | 4.60% |
|---|
| Jul 07: | 4.62% |
|---|
| Aug 07: | 4.77% |
|---|
| Sep 07: | 4.81% |
|---|
| Source: CardData (www.carddata.com) |
|---|
