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Late payments on credit cards up, defaults downAccording to the Dow Jones Newswire, many of the major issuers of credit cards saw delinquencies increase during October. For example, Capital One Financial Corp. reported that the number of accounts at least 30 days late increased from 5.38 to 5.72 percent from September to October. Discover Financial Services Inc. also posted an increase in delinquencies on credit carddebt tied to bonds, according to the report. Accounts that were behind by at least a month were at 5.72 percent in October after coming in at 5.57 in September. Unlike its competitors, American Express Co. reported that delinquency rates did not change from September to October and rest at 4.1 percent. As more consumers find it difficult to pay off their cards, lenders have worked to try and tighten their standards for issuing credit. The recent increase in delinquencies could be an indicator of future defaults, which would make the credit market that much more difficult for companies. As a result, consumers may find it more challenging to get credit cards. However, Dow Jones reports that some companies did see defaults decreased. For example, Citigroup reported that charge offs - credit card debts the company no longer expects to be repaid - dropped from an annual rate of 10.15 to 8.79 percent in October. Capital One reported that defaults fell from 9.77 to 9.04 percent. The lender with the highest charge off rate was Bank of America, which saw an annual rate of 13.22 percent of accounts default. However, Dow Jones reported that number is down when compared to months prior.
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