- Originations reached record highs year-to-date
across all generations and credit tiers as bank lending
increased
- Delinquencies remained slightly higher than a year
ago across all DPD categories driven primarily by
younger, low-income consumers, signaling continued stress
- Balance and utilization rates rose slightly as
inflationary pressures continued
SAN
FRANCISCO, July 30, 2024 /PRNewswire/ --
VantageScore, a leading national credit-scoring company, today
released its June 2024 CreditGauge, a monthly analysis
highlighting the overall health of U.S. consumer credit. The
average VantageScore 4.0 credit score remained steady at 702 for
the fourth consecutive month. The lowest VantageScore 4.0 credit
score is 300, while the highest score is 850. While originations
were up across all products as banks extended credit to more
consumers across credit tiers, high delinquency rates persisted
across all Days Past Due (DPD) categories, an indication of
continued stress among consumers.
"Despite a healthy average VantageScore credit score and
increased originations, we are reaching a potential turning point
in consumer credit health," said Susan
Fahy, Executive Vice President and Chief Digital Officer at
VantageScore. "The modest increase in consumer delinquencies shows
that many consumers continue to struggle. Rising unemployment rates
and increased political uncertainty heading into the election
season are also weighing on consumers and their financial
decisions."
Key insights for June 2024
CreditGauge include:
ORIGINATIONS ACROSS ALL PRODUCTS AT HIGHEST LEVELS
YEAR-TO-DATE AS BANKS CONTINUED TO LEND, BUT CONSUMERS EXHIBIT
STRESS – Originations across all product categories increased
to their highest levels year-to-date. Personal Loans led the jump,
increasing 0.22% from 2.68% in May
2024 to 2.90% in June 2024.
Consumers in need of credit made use of Personal Loans to help
extend their resources as needed. Credit Cards increased from 0.10%
from 3.17% in May 2024 to 3.27% in
June 2024. Auto Loan originations
have been on a steady upward trend in 2024, climbing more than 0.3%
year-to-date. New Mortgages rose slightly from 0.27% in
May 2024 to 0.28% in June 2024. It is clear that lenders are extending
new credit, but consumers are showing signs of increased
stress.
YEAR-OVER-YEAR DELINQUENCY RATES SLIGHTLY HIGHER; LONG-TERM
CREDIT STRESS STILL EVIDENT – Late-stage delinquencies remained
high as consumers struggled to recover from high inflation,
elevated interest rates, and other economic pressures. Late-stage
delinquencies in the 60-89 DPD category increased 0.08% to 0.35% in
June 2024 compared to 0.27% in
June 2023. The 90-119 DPD category
rose 0.04% year-over-year to 0.15% in June
2024. Overall early-stage delinquencies (30-59 Days Past
Due) increased 0.3% to 0.85% in June
2024 compared to June
2023.
BALANCE AND UTILIZATION RATES ROSE, A SIGN OF ONGOING
INFLATION IMPACT ON CONSUMERS – Overall balances and
utilization rates inched higher in June
2024 compared to the previous month. In June 2024, overall balances grew 2.2%
year-over-year from June 2023 and
0.25% month-over-month from May
2024.
To view the full CreditGauge report, visit the VantageScore
website.
About VantageScore CreditGauge™
CreditGauge is
provided both as a monthly analysis to industry stakeholders as
well as through a series of interactive tools
at VantageScore.com, which also includes
Inclusion360®, RiskRatio®, and MarketGain®.
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 solely
represents the views and analysis of VantageScore and does not
necessarily reflect or represent the views of the Nationwide
Consumer Reporting Agencies (NCRAs) – Equifax, Experian, and
TransUnion.
About VantageScore®
VantageScore is the
fastest-growing credit scoring company in the U.S., and is known
for the industry's most innovative, predictive, and inclusive
credit score models. In 2023, usage of VantageScore increased by
42% to more than 27 billion credit scores. More than 3,400
institutions, including 8 of the top 10 banks, use VantageScore
credit scores to provide consumer credit products including credit
cards, auto loans, personal loans and mortgages. The VantageScore
4.0 credit scoring model scores 33 million more people than
traditional models. With the FHFA mandating the use of VantageScore
4.0 for Fannie Mae and Freddie Mac guaranteed mortgages, the
company is also ushering in a new era for mortgage lending and
helping to close the homeownership gap.
VantageScore is an independently managed joint venture company
of the three Nationwide Consumer Reporting Agencies (NCRAs) –
Equifax, Experian, and TransUnion.
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SOURCE VantageScore