VantageScore CreditGauge™ July 2023: Higher Delinquency Rates Persisted, as U.S. Consumers Spent Carefully and Continued to Manage Debt Levels

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Aug 29, 2023, 08:00 ET

Overall delinquencies at highest level in 12 months across all categories and credit tiers
Loan balances grew year-over-year, credit utilization remained flat for month

SAN FRANCISCO, Aug. 29, 2023 /PRNewswire/ -- Today, VantageScore released its July 2023 CreditGauge, a monthly analysis highlighting the overall health of U.S. consumer credit. The average VantageScore credit score showed a slight month-over-month decline to 701 in July. Key findings include:

VantageScore CreditGauge - July 2023 - Balance Growth and Credit Utilization

DELINQUENCIES ROSE TO HIGHEST LEVELS ACROSS ALL CATEGORIES: Similar to June, July 2023 delinquency rates rose across all days past due (DPD) categories and credit tiers from the same period a year ago. Among loan products, the auto loan delinquency rate remained elevated, increasing 0.25% year-over-year in the 30-59 DPD category. Within credit tiers, subprime consumers remained most challenged as 30-59 DPD rose from 9.3% in July 2022 to 10.6% in July 2023.

CREDIT CARD DELINQUENCIES REMAINED HIGHER ACROSS ALL CATEGORIES: For a second consecutive month, credit card delinquencies were higher across all DPD categories, coming in at the highest level in more than 12 months. Early-stage delinquencies (30-59 DPD) rose 0.5% while later-stage delinquencies increased slightly for 60-89 DPD and 90-119 DPD categories.

CREDIT UTILIZATION FLAT FOR MONTH, DOWN FOR YEAR: Overall year-over-year balances rose across all products, with an increase of approximately 3% to $103,000 in July 2023. While loan balances steadily rose this year, credit utilization has steadily declined month-to-month. In July, utilization remained flat at 52.3%, an indication that most consumers spent carefully and continued to manage their debt levels.

"Despite the continuing rise in delinquencies, the consumer remains resilient given current economic pressures," said Susan Fahy, Executive Vice President and Chief Digital Officer at VantageScore. "However, with student loan repayments restarting in October, consumers in the lower credit tiers could be impacted further."

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

About VantageScore CreditGauge™

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 of the Nationwide Credit Reporting Agencies (NCRAs)-- Equifax, Experian, and TransUnion.

VantageScore CreditGauge content, including any estimated economic forecasts, is intended for informational purposes only. VantageScore is not responsible for use of the information contained in the CreditGauge report, including any assumptions or conclusions drawn from its use.

About VantageScore^®

Over 3,000 banks, fintechs and other companies use VantageScore credit scores every day to assess consumer creditworthiness. Last year, over 19 billion VantageScore credit scores were used representing a 30% yearly increase. Most top 10 US banks, large credit unions and leading fintechs use VantageScore credit scores in one or more lines of business including credit cards, auto loans, personal loans and more.

VantageScore is an independently managed joint venture company of the three Nationwide Credit Reporting Agencies (NCRAs)-- Equifax, Experian, and TransUnion.

SOURCE VantageScore