Credit card issuers reported the number of delinquencies their customers experienced in the month of August, and for the most part, consumers paid their bills on time.
Of the six largest credit card lenders, four reported declines in delinquencies when compared to July. The only increases were from Citibank and Capital One Financial.
Write-offs—which are the cancellations of bad debts—were also higher for these two companies. Meanwhile, Discover Financial Services, American Express, Chase and Bank of America reported that defaults declined for the month of August.
The overall drop in late payments and defaults comes after the Federal Reserve reported revolving credit balances fell in July by an annualized rate of 5.25 percent to $792 billion. Industry analysts attribute this, as well as banks issuing fewer fees, to consumers' heightened ability to stay on top of their payments.
People concerned about their finances may want to keep track of their credit report. If creditors make inaccurate notations that go unnoticed, consumers' scores may drop.