VantageScore released today the January 2023 CreditGauge, a monthly analysis designed to track consumer credit health in the United States. Overall consumer credit health continues to demonstrate resiliency as the average national VantageScore credit score remained at 696. However, the data also suggests that some consumers are struggling to make on-time loan payments and are carrying higher balances – likely in response to a higher cost of living.

CreditGauge data shows that credit card issuance slowed last December when compared to December 2021, which could be a sign that credit card issuers are tightening their credit requirements.

Key findings from the most recent CreditGauge analysis include:

DELINQUENCIES SURPASS PRE-PANDEMIC LEVELS**:** Across most products,year-over-year delinquencies continued to rise and later stage delinquencies (60-119 days past due) were higher in December 2022 than they were prior to the pandemic in all product categories except for mortgage.

HOLIDAY CREDIT CARD ISSUANCE DOWN: Continuing a trend from November 2022, credit card companies originated fewer accounts when compared to last year with 3.73% of consumers in December 2022 opening up a new card account versus 4.20% in December 2021.

BALANCES & UTILIZATION RISE: Credit card balances continued to rise to an average of $5,900 in December 2022, which may be attributable to increased seasonal holiday shopping. Utilization rates also continued to rise to 31% indicating more consumers are carrying over balances month-to-month.