Today, Austin Smith discusses why he thinks the credit card delinquency rate will so important to watch when JPMorgan (NYSE: JPM) and Wells Fargo (NYSE: WFC) release their earnings reports on Friday. The average delinquency rate for big banks is approaching 2%, or nearly half of 2009 levels, and a surprisingly low rate for either bank could mean huge long-term benefits, particularly for beleaguered JPMorgan. Investors need to remember that a low delinquency rate does not make JP Morgan a buy by itself, but a decline could definitely add to the overall argument.

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