Capital One reports credit card charge-offs increase in September

 Capital One Financial reported that US credit card defaults in September increased as more households in America are getting unemployed.

Thus, the regular report filed by Capital One showed that the annualized net charge-off rate for US credit cards increased to 9.77% in September from 9.32% in the previous month.

The filing also reported that accounts at least 30 days delinquent have risen to 5.38% from 5.09%.

Meantime, unemployment rose to a 26-year high of 9.8% in September.

Yet, according to analysts’ expectations the jobless rate will peak at over 10% by the end of 2009. Taking into account unemployment and delinquencies increase experts think credit card losses will further grow in the following months.

Capital One also reported that for US auto loans its charge-off rate increased to 4.58% in September from 4.31% a month before, while the delinquency rate rose to 9.52% up from 9.42%. International operations saw the charge-off rate increase to 9.24% in September from 8.60% in the previous month while the delinquency rate dropped to 6.63% from 6.67%.