“Consumers are continuing to spend, as we have seen after Black Friday sales were up year-over-year,” said Susan Fahy, Chief Digital Officer at VantageScore, on the Schwab Network. “It remains to be seen in January if consumers have a credit hangover, and we are watching the lower-income consumer, who are the most stressed in the current environment.”
Fahy joined the Schwab Network’s ‘Next Gen Investing’ program to discuss consumer credit health during the holiday shopping season.
Fahy notes the growing bifurcation between lower and higher-income consumers, adding: “When you look at the different income levels, lower-income consumers are falling behind with their delinquencies, which are rising more than those of other income groups. When we start to look under the hood a little bit on that, that is because this population is impacted more by persistent inflation and limited access to credit.”
Read more about consumer credit trends in our latest CreditGauge report.
Watch the full interview below:
