Credit card loans for customers of Bank of America (NYSE:BAC) dropped to their lowest levels since November 2008, making Bank of America the top bank in that segment.
The bank said the reasons for the improvement were because of tax refunds and possibly an improving economy. Bank of America is the second-largest credit card lender in the United States.
Banks normally consider a credit card loan that is overdue by 30 days or more a measure of write-offs in the future. Those loans dropped in April to 6.73 percent from 7.07 percent in March.
The credit card unit at Bank of America had the worst write-off rate of the top issuers of credit cards in the U.S., resulting in losses of $5.6 percent in 2009.
Hopes are this trend will continue and the division will return to profitability, which would give the giant bank a huge boost.
Other major credit card issuers in the U.S. also had overdue payments improve, with J.P. Morgan (NYSE:JPM), AmEx (NYSE:AXP) and Capital One (NYSE:COF) also improving.
