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Credit improved among americans

By Faye Mergel
Published: Monday, November 29th, 2010

06Americans are expecting a major leadership with the most recent government election in the nation. But besides an anticipated political victory, the people of America have one more reason to feel victorious. Fitch Ratings has reported that more and more card holders are able to pay of their debts and the yes, on time as well.

The previous month, it had been reported that the Prime Credit Card charge off index for Fitch plunged below ten percent; 9.22 percent that is. It was 10.36 percent before index fell down. For the past eighteen months, credit card delinquencies are on their lowest and are fourteen percent lower the same months last year. It is also expected that asset-backed cards and securities to be more stable due to the increase in the supply of availability of credit and that tranches which had been low would still be negative. Though there had been a seen improvement in asset-backed cards and securities retails, there still is an increase in credit card delinquency. Most of the cards available for retail are supported by GE Money Bank, Citibank, HSBC Bank Nevada and World Financial Network

There was also an improvement in delinquencies. As per the figures from Fitch Credit Card Index, card owners with delinquencies of sixty days and over fell to 3.5 percent; a decrease of six points. This is also the lowest percentage in the last two years. For nine consecutive months now, stages of late delinquencies also fell by seventeen percent; the same as last year while a fall to 4. 61 percent was reported the cases of early stage delinquencies or cad holders with thirty days delinquency. For credit experts, it is important for them to have an idea of early stages of credit delinquencies because they can serve as a factor that could predict future defaults for the next three months.  

Though the world recession that hit the US the most is said to be officially over and the rates or percentage of credit delinquencies are declining, the nation still has a lot to worry about. The unemployment rate in the US still continues to go up and is below the standard ten percent rate. With the statement given by Michael Dean, the Managing Director of Fitch, US has actually seen a bit of an improvement with the applications on unemployment and when this trend would continue in the coming days, there would be more improvements on defaults to follow.

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