The month of June also proved to be a good one to all the major credit card lenders in the market. Continuing with the trend that started in January this year, customers have become more conscious about making their monthly payments on time to avoid defaults. Most of them are making this effort to ensure they rebuild their credit report that turned worse during the recession. Almost all the major credit card lenders in the country echoed the fact that customers were being more committed to repaying their dues on time.
The rate of delinquencies and defaults fell to a low that was last seen three years ago. One of the studies conducted by Fitch Ratings clearly indicates that customers are trying hard to manage their finances better. This in turn has led to increased profits for banks as compared to the time during recession when most of the credit card accounts had to be written off. For the fourth month this year and third consecutive, the charge offs dropped significantly and stood at 7.29 percent.
The accounts that were delinquent for the last two months dropped to just 2.57 percent and the one month delinquent accounts fell to 3.33 percent which is the lowest noticed since 2007. The rate of highly delinquent accounts is 36 percent lesser than what it was during the same period last year.
The gradually improving economic situation has helped many customers take charge of their finances better and pay off their debts on time and stay current to build a good credit history.
