BofA (BAC) Credit Card Defaults Climb

The number of credit card defaults for Bank of America (NYSE:BAC) increased in April, according to a regulatory filing on Friday.

The percentage of credit card balances written off by the company increased from 8.18 percent in March to 8.25 percent in April. The company said the percentage of late payments by credit card customers has slightly decreased.

Even though Bank of America has vastly improved in this segment, dropping substantially from the 14.53 percent it had reported in August 2009, it is still the worst in the industry for credit card defaults among the top six issuers of plastic.

Credit card loans are normally written off after they reach 180 days past due, as the assumption they won't be able to collect on the balance is made at that time.

Delinqencies were a better story for the giant bank, as that rate has fallen to 4.52 percent on an annual basis, the lowest percentage since it stood at 4.47 percent in October 2006.

Bank of America (BAC) closed Monday at $11.86, down $0.07, or 0.59 percent.