Capital One Financial Corp. reported yesterday that more of its U.S. credit card borrowers fell behind on payments in November.
In a regulatory filing, the company said its annual net charge-off rate rose to 9.6% last month from 9.04% in October. The charge-off rate is the percentage of loans the company believes will not be repaid compared total loans. The rate for loans at least 30 days delinquent, often a sign of future loan losses, rose to 5.87% from 5.72%.
For automotive loans, the charge-off rate dropped from 4.32% in October to 3.67% last month. The delinquency rate for auto loans climbed to 9.57% from 9.3%.
Capital One issues MasterCard and Visa credit cards. The company has seen defaults on its cards spike over the past year as rising unemployment and declining personal wealth hurts consumers' ability to pay off their debts.
The McLean, Va.-based company also reported that the charge-off rate for international card operations was flat, edging up to 9.5% from 9.49%. The international delinquency rate was down slightly, to 6.6% from 6.67%.
