Investors have been watching closely for signs that consumers are cracking under inflation and high interest rates, as recently reported by MarketWatch in a story citing VantageScore’s May 2024 CreditGauge insights.

Among American consumers, the bifurcation in consumer credit health continued, as the younger and less affluent continued to be among the most impacted by continued inflation and high interest rates,” said Susan Fahy, EVP and Chief Digital Officer at VantageScore.

In May, early-stage mortgage delinquencies, when bills are 30 to 59 days past due, rose to a rate of 0.92%, up from .66% in May 2023; auto loan delinquencies rose to 2.07%, up from 1.94%, and credit-card delinquencies rose to .69%, up from .60%, according to VantageScore’s May 2024 CreditGauge insights.

Delinquencies rose the most among Gen Z credit-card holders and lower-income borrowers, VantageScore found. The increased dependency on credit was “the result of the persistent pressures of inflation, rising rental costs and elevated interest rates heading into the higher spending months of the summer.”

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

Read the full story here: MarketWatch