VantageScore CreditGauge™ August 2023: Credit Card Account Openings Approached 12-Month High Despite Overall Increase in Consumer Delinquencies

• Lenders slowed originations in August across all products except credit card compared to July 2023
• In August, overall year-over-year delinquencies reached the highest levels across all Days Past Due (DPD) categories; credit card late-stage delinquencies (90-119 DPD) nearly doubled from a year ago

SAN FRANCISCO, Sept. 28, 2023 /PRNewswire/ -- Today, VantageScore released its August 2023 CreditGauge, a monthly analysis highlighting the overall health of U.S. consumer credit. The average VantageScore credit score held steady in August at 701. Key findings for the month included:  

CREDIT CARD ORIGINATIONS ROSE WHILE DELINQUENCIES STAYED ELEVATED: In August 2023, newly opened accounts slowed across all product categories with the exception of credit card when compared to July 2023. Credit card originations saw an uptick of 0.16% month-to-month, with new card account openings approaching similar levels from 2022.  The average credit card balance was up 11.1% year-over-year to $6,082. Credit card delinquencies stayed elevated across all days past due (DPD) categories; early-stage card delinquencies were unchanged while later-stage delinquencies inched up compared to July. Credit card delinquencies for 90-119 DPD almost doubled from a year ago, jumping from 0.13% in August 2022 to 0.24% today.

OVERALL DELINQUENCIES ACROSS ALL DAYS PAST DUE CATEGORIES REACHED HIGHEST LEVELS IN 12 MONTHS: For the month, delinquency rates across product types and DPD bands continued to move upward, exceeding August 2022 levels. Early-stage delinquencies rose slightly month-to-month from 0.82% to 0.84%, a new high for the year and up 0.19% from a year ago.   Among products, auto loan delinquencies remained the highest and continued to surpass pre-pandemic levels across all DPD categories.  Auto loan early-stage delinquencies recorded their largest monthly increase in the last year, rising 0.27% from 1.91% in August 2022 to 2.18% in August 2023.

EXCLUDING SUPERPRIME, DELINQUENCY RATES ROSE MODESTLY ACROSS OTHER SEGMENTS: Compared to last year, delinquency rates in the Subprime, Nearprime and Prime credit segments rose across all DPD categories.

"In August, lenders tightened access to credit across most products and consumers continued to remain cautious about adding to their debt levels," said Susan Fahy, Executive Vice President and Chief Digital Officer at VantageScore. "The data shows that over the summer many U.S. consumers began to feel the strain of rising interest rates and dwindling savings, along with an increase in missed payments."    

To view the full CreditGauge report, visit the VantageScore website.

About VantageScore CreditGauge™
CreditGauge is provided both as a monthly report to industry stakeholders, as well as through a series of interactive tools at VantageScore.com. Stakeholders can use the tools to execute additional queries on credit metrics and compare current levels to a pre-pandemic timeframe, starting with January 2020. CreditGauge represents the views and opinions of VantageScore and does not necessarily reflect or represent the views of the Nationwide Credit Reporting Agencies (NCRAs)-- Equifax, Experian, and TransUnion.

VantageScore CreditGauge content, including any estimated economic forecasts, is intended for informational purposes only. VantageScore is not responsible for use of the information contained in the CreditGauge report, including any assumptions or conclusions drawn from its use.

About VantageScore®
Over 3,000 banks, fintechs and other companies use VantageScore credit scores every day to assess consumer creditworthiness. Last year, over 19 billion VantageScore credit scores were used representing a 30% yearly increase. Most top 10 US banks, large credit unions and leading fintechs use VantageScore credit scores in one or more lines of business including credit cards, auto loans, personal loans and more.

VantageScore is an independently managed joint venture company of the three Nationwide Credit Reporting Agencies (NCRAs)-- Equifax, Experian, and TransUnion.

SOURCE VantageScore