Overall credit card delinquencies have been rising broadly this year and remain above pre-pandemic levels, raising concerns about consumer credit health and the general state of the economy. Silvio Tavares, President and CEO of VantageScore, recently spoke with Marketplace to discuss the rise in credit card delinquencies and provide additional context.

Credit card delinquencies are up year-over-year,” said Silvio. “But if you look at it month to month, they have actually been improving through March, April, and a little bit through May.

VantageScore’s Creditgauge, a monthly analysis of U.S. consumer credit health, reveals the average VantageScore credit score is a healthy 702 but hides a bifurcated market. Two different Americas.

Wealthier consumers are paying off cards and paying down debt, boosting their scores. But that lower-income consumer in increasingly falling begind on their credit balances, and that’s really where we’re seeing the localization of the increase delinquencies,” added Silvio.

CreditGauge is VantageScore’s monthly analysis of U.S. consumer credit health. Read our latest insights here: https://www.vantagescore.com/lenders/credit-gauge/

Listen to Silvio’s full interview here: Marketplace Radio