- Early-stage credit delinquencies saw their second-highest jump this year; later stage credit delinquencies also rose year-over-year
- New credit accounts decreased across all products, led by a decline in new Credit Cards and Personal Loans
- Credit account balances hit new records
VantageScore, a leading national credit-scoring company, today released its September 2024 CreditGauge, a monthly analysis highlighting the overall health of U.S. consumer credit. The average VantageScore 4.0 credit score increased slightly but held at 702 for the seventh consecutive month. The lowest VantageScore 4.0 credit score is 300, while the highest score is 850. Credit delinquencies increased across products and days past due (DPD) categories while the percentage of consumers with newly opened credit accounts dropped.
“September’s CreditGauge provides the final snapshot of consumer credit health before the U.S. elections, revealing that many consumers are putting their new borrowing on pause,” said Susan Fahy, Executive Vice President and Chief Digital Officer at VantageScore. “The slow down in new lending and borrowing is notable given that the Federal Reserve cut interest rates in September in an effort to stimulate access to new credit for consumers and corporates.”
Key insights for September 2024 CreditGauge include:
CREDIT DELINQUENCIES INCREASED BROADLY – In September 2024, late payments across all days past due (DPD) categories rose compared to September 2023 and all stages except 90-119 DPD compared to August 2024. Early-stage (30-59 DPD) credit delinquencies rose sharply by 0.13% month-over-month, the second-biggest monthly gain in 2024. Late-stage payments for mortgages rose the most year-over-year by 0.05%, followed by Credit Cards, which increased by 0.04%. Credit delinquency rates also rose across all VantageScore credit tiers year-over-year.
PERCENTAGE OF CONSUMERS WITH NEW LOANS DECLINED – Newly opened credit accounts fell across all products year-over-year. Across all credit products, month-over-month new accounts slowed, except for mortgages. New Credit Card accounts fell 0.26% compared to September 2023, the most among all credit products. The drop reflected lower demand for loans among consumers and an increased perception of risk among lenders.
CREDIT ACCOUNT BALANCES HIT NEW HIGH – In September 2024, overall balances hit a new CreditGauge record for a third consecutive month. Overall average credit balances rose by $2,206 (+2.1%) year-over-year and by $163 (+0.16%) month-over-month. The amount of available credit that borrowers used – the credit utilization rate – fell slightly. This shows consumers maintained steady credit usage relative to their loan amounts as historically high interest rates tended to increase loan balances.
To view the full CreditGauge report, visit the VantageScore website.
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