As the US economy gradually recovers from economic downturn, the industry is witnessing a decline in charge-off rates.

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Hence, the charge-off rates determine the overall profits for any credit card issuer.

FORBES: Richie Rich Pays Bills On Time, Helps AmEx Run All The Way To $50

Charge-off rates, the value of loans removed from a company's books and charged against loss reserves, are not necessarily the best indication of lender performance.

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While this trend might have a significant positive impact to other credit card issuers, American Express has little to gain since its charge-off rates have always been the lowest.

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In 2001, credit card issuers bled slowly as charge-off rates for the top 100 U.S. institutions rose to 5.94% for the fourth quarter of 2001 from 4.55% in the fourth quarter of 2000.

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There are rises in both the charge-off and delinquency rates, which measure the share of balances that are uncollectable or more than 30 days late respectively.

ECONOMIST: Consumer credit