Auto loan data, credit card balances flash warning signs
2 min read
close video The Points Guy founder Brian Kelly reveals his favorite travel credit card
The Points Guy founder Brian Kelly discusses what’s behind ‘robust’ travel bookings as airfare and hotel prices continue to climb on ‘The Claman Countdown.’
Credit scores remained relatively steady in November, according to a VantageScore report, while auto loan delinquency rates and average credit card balances – which saw year-over-year increases – appeared to flash warning signs for consumers.
The credit-score model development company said its December 2022 CreditGauge report found that the national average VantageScore credit score for November was 696. That marked a one-point drop from October’s 697, where the score "had been steady since March," and a 2.2-point increase year-over-year, according to the report.
The credit-score model development company said its December 2022 CreditGauge report found that the national average VantageScore credit score for November was 696. (iStock / iStock)
Meanwhile, the delinquency rate for auto loans 30 to 59 days past due in November went up on both a month-over-month and year-over-year basis. It rose 0.12% from October and 0.51% from November of last year, coming in at 2.00%, according to the report.
29% OF US ADULTS ANTICIPATE THEIR FINANCES WORSENING IN COMING YEAR: SURVEY
For auto loans 60 to 89 days past due and 90 to 119 days past due, the delinquency rates both saw increases compared to November 2021. On a monthly basis, the rate for the former saw a slight increase from October, while the latter stayed the same, the company found.
"Auto Loan delinquency rates are in line with pre-pandemic levels, but this is an area to watch as consumers with lower credit scores could be more vulnerable to rising interest rates and higher prices," VantageScore’s report said.
ECONOMIC INDEX FALLS FOR NINTH STRAIGHT MONTH, FLASHING RECESSION WARNING
While inflation measured by the Consumer Price Index did cool somewhat in November, prices are still hovering at painfully high levels, going up 0.1% from the prior month and 7.1% year-over-year, as earlier reported by FOX Business. In an effort to fight inflation, the Federal Reserve has done multiple interest rate increases this year, including four back-to-back 75-basis-point hikes and – most recently – a 50-basis-point one.
VantageScores report said the average credit card balance for November was roughly $5,650, up $650 from the same month a year ago and the “highest level in the last 12 months.” (iStock)
Additionally, VantageScore’s report said the average credit card balance for November was roughly $5,650, up $650 from the same month a year ago and the "highest level in the last 12 months," according to the report. For credit cards, the report found that the average credit card utilization rate, at 30.2%, also saw increases of 0.2% on a monthly basis and 2.3% on a yearly basis.
CREDIT CARD BALANCES SEE LARGEST ANNUAL JUMP IN MORE THAN 20 YEARS
The Federal Reserve Bank of New York said in mid-November that one of its quarterly reports found that credit card balances had climbed $38 billion, or 15%, compared to the third quarter of 2021.
