Capital One Financial Corp's U.S. credit-card defaults continued their decline for the fourth straight month, signaling that fewer Americans were falling seriously behind in their credit card payments.

In a regulatory filing, Capital One said the annualized net charge-off rate -- debts the company believes it will never collect -- for U.S. credit cards fell to 8.13 percent in July from 9.28 percent in June.

Capital One, the third-largest U.S. issuer of Visa-branded credit cards and the fifth-largest issuer of MasterCard-branded credit cards, said accounts at least 30 days delinquent -- an indicator of future loan losses -- declined to 4.66 percent from 4.79 percent.

For U.S. auto loans, Capital One's charge-off rate was 2.60 percent in July, down from 2.72 percent in June, and the delinquency rate marginally fell to 7.72 percent from 7.74 percent.

In credit card international operations, including Canada and Britain, the charge-off rate decreased to 7.86 percent from 8.29 percent, while the delinquency rate fell to 5.94 percent from 6.03 percent.

Capital One routinely kicks off the monthly reporting of credit card charge-offs. JPMorgan Chase & Co , Bank of America Corp , Citigroup Inc , American Express Co and Discover Financial Services are expected to report the monthly performance of their credit card portfolios later on Monday.

Capital One shares closed at $38.82 on Friday on the New York Stock Exchange.

(Reporting by Brenton Cordeiro in Bangalore)

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