U.S. credit card defaults rose to record highs in May ...
Bank of America—the largest U.S. bank—said its default rate, those loans the company does not expect to be paid back, soared to 12.50 percent . . . American Express . . . said its default rate rose to 10.4 percent ... Capital One said its credit card default rate rose to 9.41 percent . . . while Discover said its charge-off rate increased to 8.91 percent . . . JPMorgan Chase ... said its default rate rose to 8.36 percent[.]
What does it mean for you?
Credit card lenders are trying to protect themselves by tightening credit limits, raising standards and closing accounts. They have also been slashing rewards, increasing interest rates and boosting fees to cushion against further losses.