FOR IMMEDIATE RELEASE
April 28, 2023
Contact: Jeff Richardson
VantageScore
jeffrichardson@vantagescore.com
(332) 222-0140
OVERALL CONSUMER DELINQUENCY RATES IMPROVED IN MARCH FOR THE FIRST TIME IN 2023
Latest CreditGauge Powered by VantageScore™ Analysis Shows On-Time Payments Increased Last Month
San Francisco, CA. (April 28, 2023) – The rate at which consumers paid their loan obligations on-time improved during the banking turmoil in March, according to the latest CreditGauge analysis from VantageScore. Despite the improved credit performance, new loan and account originations slowed.
Key findings and insights from this month’s CreditGauge analysis include:
DELINQUENCY RATE REVERSAL: In March, 30 and 60-day delinquency rates showed signs of improvement for all loan categories (credit card, mortgage, auto, personal loan) compared to February 2023. Specifically, after steadily rising in 2022, auto loan delinquencies declined across all days-past-due categories in March, including 30-day delinquencies, which declined to 1.65% from 2.1% in February 2023.
CONSUMER CREDIT HEALTH HOLDS STEADY: In March, the average VantageScore 4.0 credit score remained at 701, the same as in February 2023 and 4.5 points higher than in March 2022. Also, the trend of consumers moving out of the SubPrime credit tier into higher tiers continued. The percentage of consumers in the SubPrime credit tier decreased from 20.4% in March 2022 to 18.1% in March 2023
NEW LENDING SLOWS: March saw a drop-off in new account activity. The decline was particularly stark in personal loans, both month-to-month and year-over-year. Year-over-year, personal loan account originations declined most significantly among GenZ, at a rate of 2.6%. Similarly, mortgage lending was flat versus February 2023 and significantly lower versus March 2022, pointing to a slower start to this year’s Spring home buying season.
To view the full CreditGauge report, visit the VantageScore website.
About CreditGauge Powered by VantageScore
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 and opinions of its affiliates and owners, including the Nationwide Credit Reporting Agencies (NCRAs), Equifax, Experian, and TransUnion.
About VantageScore Solutions
VantageScore Solutions develops consumer credit scoring models that combine the need for both financial inclusivity and dependable predictiveness across all scoring ranges. Known as an industry thought leader, the company’s most recent models score approximately 96 percent of all adults 18 and older – including 33 million more people than conventional models – without sacrificing safety and soundness. As a result, lenders using VantageScore can extend credit to those who have been historically marginalized, including minority and lower-to-middle income Americans. VantageScore credit scores are used by thousands of lenders, landlords, utility companies, telecom companies, and many others to determine creditworthiness. Additionally, tens of millions of consumers rely on free access to their VantageScore credit scores to monitor their own creditworthiness.
VantageScore Solutions was launched in 2006 and is owned by America’s three NCRAs – Equifax, Experian, and TransUnion. Using a patent-protected tri-bureau methodology, VantageScore delivers time-tested, innovative, and more consistent credit scoring models across all three NCRAs.