Consumer Credit Health Appears Stable Despite High Interest Rates and Inflation

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Nov 29, 2022, 06:30 ET

November 2022 CreditGauge Powered by VantageScore™ Shows Some Increase in Risk but Overall Consumers Are Demonstrating Healthy Credit Behaviors

SAN FRANCISCO, Nov. 29, 2022 /PRNewswire/ -- VantageScore released today November's CreditGauge, a monthly analysis designed to track consumer credit health in the United States. Overall consumer credit health appears stable as October's average VantageScore credit score was 697, which has been consistent over the last few months.

CreditGauge data suggests that some consumers are turning to credit cards to cover expenses and delinquencies are rising in some categories. Inflation also appears to be impacting consumer spending as average credit card utilization rates and balances increased both year-over-year and month-over-month.

Additional key findings from the most recent CreditGauge analysis include:

CARD BALANCES INCREASE: In October, consumers averaged $5,600 in credit card balances, as compared to $5,500 (up .8% Month-Over-Month) in credit balances in September and $4,900 in October 2021 (up 13.8% Year-Over-Year). Rising interest rates and prices combined with strong consumer demand contributed to the rising balances.

RISING MISSED AUTO LOAN PAYMENTS: Delinquencies on auto loans in the 30-59 days past due category improved when compared to September but continue to record the largest year-over-year increase versus 2021 (.48%) when compared to other product types.

BELOW PRE-PANDEMIC LEVELS: Overall, delinquencies continue to be below pre-pandemic levels but have increased compared to twelve months ago.

MORTGAGE SLOWDOWN: Across the US, mortgage interest rates are near a two-decade high resulting in weak new mortgage activity. People appear to be staying put instead of moving.

ABOUT CREDITGAUGE POWERED BY VANTAGESCORE:

CreditGauge is provided both as a monthly report to industry stakeholders, as well as through a series of interactive tools at VantageScore.com. Stakeholders can use the tools to execute additional queries on credit metrics and compare current levels to a pre-pandemic timeframe (starting with January 2020). CreditGauge represents the views and opinions of VantageScore and does not necessarily reflect or represent the views and opinions of its affiliates and owners including the Nationwide Credit Reporting Agencies (NCRAs), Equifax, Experian, and TransUnion.

About VantageScore Solutions

VantageScore Solutions develops consumer credit scoring models that combine the need for both financial inclusivity and dependable predictiveness across all scoring ranges. Known as an industry thought leader, the company's most recent models score approximately 96 percent of all adults 18 and older – including 37 million more people than conventional models – without sacrificing safety and soundness. As a result, lenders using VantageScore can extend credit to those who have been historically marginalized, including minority and lower-to-middle income Americans. VantageScore credit scores are used by thousands of lenders, landlords, utility companies, telecom companies, and many others to determine creditworthiness. Additionally, tens of millions of consumers rely on free access to their VantageScore credit scores to monitor their own creditworthiness.

VantageScore Solutions was launched in 2006 and is owned by America's three NCRAs – Equifax, Experian, and TransUnion. Using a patent-protected tri-bureau methodology, VantageScore delivers time-tested, innovative, and more consistent credit scoring models across all three CRCs.

SOURCE VantageScore