Today, VantageScore released CreditGauge, a monthly analysis highlighting the overall health of U.S. consumer credit. The average VantageScore credit score declined less than one point but remained at 702. On a sequential month-to-month basis, overall loan balances and credit utilization remained flat, indicating consumers used credit more cautiously.  Key findings include:

OVERALL DELINQUENCY RATES CONTINUED TO RISE YEAR-OVER-YEAR: June 2023 delinquency rates rose across all days past due (DPD) categories from the same period a year ago. In June, the largest month-over-month increase in early stage (30-59 DPD) delinquencies was recorded in the past 12 months, jumping from (+0.71%) in May to (+0.82%) in June, an increase of (+0.11%).  The 60-89 DPD and 90-119 DPD categories both showed a minor uptick, indicating certain consumers continue to struggle to make on-time payments due to high interest rates and sustained inflation.

AUTO LOAN, CREDIT CARD AND PERSONAL LOAN DELINQUENCIES NEAR OR ABOVE PRE-PANDEMIC HIGHS: In the 30-59 DPD category, Auto Loans and Mortgages recorded the largest increase (+0.12%) month-to-month. In the 60-89 DPD category, all products showed a monthly uptick in delinquencies while in the 90-119 DPD category­­ only Credit Card recorded a slight decrease (+0.01%). Auto Loan, Credit Card and Personal Loan delinquency rates were near or above pre-pandemic (January 2020) levels across all DPD categories as some consumers' monthly budgets are squeezed by rising living costs and debt obligations.

JUNE 2023 SAW A REBOUND IN NEW LOAN ORIGINATIONS: Following a brief decrease in May, new loan account activity rebounded in June across all credit products and tiers. Month-over-month Personal Loans increased the most (+0.4%) followed by Credit Card (+0.24%), Auto Loan (+0.13%) and Mortgage (+0.05%). Despite the June rise, loan originations remained below levels of a year ago, suggesting a continued tightening of credit standards and loan approval criteria.

"Even though June 2023 delinquency rates remained elevated, lenders did not shy away from making new loans," said Susan Fahy, Executive Vice President and Chief Digital Officer at VantageScore.  "Over the first half of the year, we have seen this interesting dynamic where delinquencies across most products have returned to near or above pre-pandemic levels, but lenders continued to extend credit in this high interest rate environment."