On Monday it has been said by Capital One Financial Corp. (COF) that those U.S. borrowers who are at least a month behind their card payments has been increased up to to 4.83% in July from 4.77% in June.

According to a regulatory filing Monday, In addition to this, the bank and credit-card issuer have wrote off 9.835% of its card loans last month, which was 9.73% in June.

Sanjay Sakhrani, who is an analyst at Keefe, Bruyette & Woods, has said on Monday in a note that the amount of card debt that has been wrote off in July by Capital One  is trending better than what is estimated by them. Sakhrani anticipates that card losses will be at the peak for the overall industry in the fourth quarter or even early next year.

This monthly report card on the performance of credit-card loans, that also includes those packaged into bonds, has come up with increased scrutiny around credit as strapped borrowers increasingly fall behind on payments. A window is provided by these reports into the potential losses that are being faced by the card issuers and the amount which they might need to squirrel away as reserves.

The issuers of plastic, that includes Capital One, JPMorgan Chase & Co. (JPM), Bank of America Corp. (BAC), Citigroup Inc. (C), Discover Financial Services (DFS) and American Express Co. (AXP), are not only trying to cope with the losses that arises from credit-card loans turning into bad credit, but they are also sweeping legislation that will bite into income. In order to fight the losses, card issuers are scaling back on credit and they are getting much tougher on who they lend to.

The shares of Capital One has been traded at $34, ahead of the U.S. stock market open. On Friday the shares closed at $35.08.

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