Consumer Credit Health Looks Stable Despite Rising Interest Rates and Rising Income | So Good News


November 2022 CreditGauge Powered by VantageScore™ Shows Some Increase in Risk But All Consumers Show Good Credit Ratings

Image of SAN FRANCISCO, Nov. 29, 2022 /PRNewswire/ — VantageScore released today the November CreditGauge, a monthly analysis designed to track consumer health. United States. Overall consumer credit looks stable as the VantageScore credit score average for October was 697, which has been consistent over the past few months.

CreditGauge data shows that some consumers are turning to credit cards to pay their bills and delinquencies are rising in some categories. Inflation also appears to be affecting consumer spending as credit card spending increases year over year and month over month.

Key findings from CreditGauge’s latest analysis include:

ADDITIONAL CARD CHANGES: In October, average buyers $5,600 credit card limits, compared to $5,500 (up to .8% Month-Over-Month) on credit limits in September and $4,900 in October 2021 (up to 13.8% Year Over Year). Rising interest rates and prices combined with strong consumer demand helped boost the currency.

INCREASE IN ARMY DECORATION PAY: Delinquencies on car loans in the past 30-59 days have risen significantly compared to September but continue to increase year-on-year against 2021 (.48%) compared to other types of products.

BELOW IN THE FOLLOWING PROCEDURE: Overall, crime continues to decline pre-pandemic but has increased compared to twelve months ago.

EXTREMELY SLOW: Across the U.S., interest rates are near decade highs leading to weak mortgage rates. People seem to be staying put instead of moving.


CreditGauge is provided as a monthly report to industry stakeholders, and through several communication tools on Stakeholders can use the tools to submit additional questions about credit information and compare current trends with the pre-pandemic period (from January 2020). CreditGauge represents the views and opinions of VantageScore and does not 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 incorporate the importance of financial inclusion and reliable forecasting across all credit scoring systems. Recognized as the industry leader, the company’s latest models have reached nearly 96 percent of all adults 18 and over — including 37 million more people than traditional models — without sacrificing safety and stability. As a result, lenders who use VantageScore can extend credit to those who have previously been discredited, including low-income and low-income Americans. VantageScore credit scores are used by thousands of lenders, landlords, utility companies, phone companies, and many others to determine their creditworthiness. Additionally, millions of consumers rely on the VantageScore credit score to assess their creditworthiness.

VantageScore Solutions was founded in 2006 and is owned by three American NCRAs – Equifax, Experian, and TransUnion. Using a patented tri-bureau system, VantageScore provides time-tested, innovative, and comparable credit models across all three CRCs.

SOURCE VantageScore


Source link