Three out of five major U.S. credit card issuers saw significant increases in December in their net charge of rates, according to SEC filings. But the average credit card charge-off rate fell compared to November, the direct result of Citibank reporting a huge drop in December.
Bank of America, Discover, and JP Morgan Chase reported increases in their net credit card charge-off rates among their securitized debt trusts. Capital One reported a decrease in their rate. Citi said that its charge-off rate fell to 5.11 percent in December after a 6.36 percent rate the previous month.
Citi’s large movement drove down the average charge-off rate among the five issuers to 4.45 percent from 4.59 percent in November.
The average 30+ day delinquency rate continued to decline in December, reaching a multi-year low of 3.05 percent in the last month of 2011.
