VantageScore released today the February 2023 CreditGauge, a monthly analysis that tracks consumer credit health in the United States.
The new February data shows that lenders reduced access to new credit offerings for consumers despite a relatively high average consumer VantageScore of 701, based on the range of 300-850. The CreditGauge data also shows that consumers continued to miss credit payments at a modestly increasing rate, which is likely a reflection of how continuing inflation and higher interest rates are increasingly impacting some consumers’ ability to stay current on their loan obligations. Delinquency rates are slowly rising across the board. For example, the auto finance sector experienced early-stage delinquency rate increases of 0.39% as compared to the same period last year.
As a result of these shifts, lenders appear to have become more cautious about new consumer credit. As a result of these shifts, lenders appear to have become more cautious about new consumer credit account originations despite relatively stable consumer credit health.
Download the full report here.