Credit card companies report drop in delinquency rates

Americans appear to be improving their credit management, according to new information from the major credit card companies.

All of the six largest credit card issuers reported drops in delinquency, with Bank of America recording the lowest rate in late payments in roughly five years, according to The Associated Press. Citigroup saw its delinquency rate fall to 3.87 percent in April, down from 4.21 percent the previous month, while Discover Financial's rate dropped to 3.15 from 3.42 percent.

American Express recorded the lowest rate of the six at 1.7 percent – a slight decrease from the 1.8 percent tallied in March.

The drop in delinquency rates may signal that many consumers are making a conscious effort to pay down debt and get their credit in order. Even though paying down revolving balances will almost always raise credit scores, this isn't necessarily the end-all solution for many consumers with bad credit.

That's because a number of these individuals may have an unfair or inaccurate mark on their credit report that is harming their credit scores. As a result, they are not seeing the results they expected from all of their diligent bill paying. After identifying any problematic items on their files, the next step for some consumers may be to contact a credit repair lawyer who may be able to work with the credit bureaus to remove the negative blemish.