HIGHER COST OF LIVING IMPACTING CONSUMER CREDIT HEALTH

News provided by

Jan 30, 2023, 07:00 ET

January 2023 CreditGauge Powered by VantageScore™ Shows Continued Stability While Some Consumers Are Demonstrating Increased Risk

SAN FRANCISCO, Jan. 30, 2023 /PRNewswire/ -- VantageScore released today the January 2023 CreditGauge, a monthly analysis designed to track consumer credit health in the United States. Overall consumer credit health continues to demonstrate resiliency as the average national VantageScore credit score remained at 696. However, the data also suggests that some consumers are struggling to make on-time loan payments and are carrying higher balances - likely in response to a higher cost of living.

CreditGauge data shows that credit card issuance slowed last December when compared to December 2021, which could be a sign that credit card issuers are tightening their credit requirements.

Key findings from the most recent CreditGauge analysis include:

DELINQUENCIES SURPASS PRE-PANDEMIC LEVELS: Across most products, year-over-year delinquencies continued to rise and later stage delinquencies (60-119 days past due) were higher in December 2022 than they were prior to the pandemic in all product categories except for mortgage.

HOLIDAY CREDIT CARD ISSUANCE DOWN: Continuing a trend from November 2022, credit card companies originated fewer accounts when compared to last year with 3.73% of consumers opening up a new card account versus 4.20% in December 2021.

BALANCES & UTILIZATION RISE: Credit card balances continued to rise to an average of $5,900 in December 2022, which may be attributable to increased seasonal holiday shopping. Utilization rates also continued to rise to 31% indicating more consumers are carrying over balances month-to-month.

To view the full CreditGauge report, visit the VantageScore website.

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 NCRAs.

SOURCE VantageScore