Bank of America Card Delinquencies Fall to 1.39%, Charge-offs Ease
Bank of America’s BA Master Credit Card Trust II delinquency rate fell to 1.39% in January 2026 from 1.48% a year earlier. Net charge-off rate improved to 2.28% from 2.48% in January 2025, signaling slight easing in consumer credit stress.
1. Credit Card Delinquency and Charge-offs
Bank of America’s BA Master Credit Card Trust II delinquency rate declined to 1.39% in January 2026, down from 1.48% in January 2025. The net charge-off rate also improved, falling to 2.28% from 2.48% a year earlier, reflecting reduced losses on unpaid balances.
2. Asset Quality Implications
The sequential easing in delinquencies and charge-offs may allow the bank to moderate loan-loss provisions and support earnings in the near term. Nevertheless, sustained consumer pressures and cautious lending could cap receivables growth and weigh on overall asset quality if economic conditions deteriorate further.