VantageScore: Overall Credit Balances Up in October, Driven by Mortgages

(Image courtesy of VantageScore; Breakout image courtesy of Jessica Bryant/pexels.com)

VantageScore, San Francisco, released its October CreditGauge, finding overall balances hit a new metric record for the fourth straight month.

Overall credit balances rose by $384 from September and $2,218 year-over-year to an average of $105,600.

The average mortgage balance rose by $6,813 year-over-year, driven by higher interest rates and higher loan amounts pushed by home prices.

Credit card balances were flat at $6,335 in October compared with September, however.

Credit delinquencies have grown over the past few years–with a particular spike among white-collar consumers. High-income (which VantageScore defines as $150,000-plus) credit delinquencies in the 60-89 days past-due category have more than doubled from January 2023 to present.

Comparatively, those delinquencies have increased among middle-income earners by 63% and low-income earners by 25%.

Credit delinquency rates overall in the month increased across categories and product types compared with last year.

“Low-income consumers are no longer the only group facing challenges. More affluent and white-collar workers are also facing pressure from inflation and a less healthy job market,” said Susan Fahy, Executive Vice President and Chief Digital Officer at VantageScore. “This economic reality will weigh on the holiday shopping season.” 

The average Vantage Score 4.0 Credit Score was 702, down slightly from September, but up 0.8 point year-over-year.

Originations fell across all products, including mortgages. The percentage of consumers with newly opened mortgages on file fell to 0.27% after holding at 0.28% for four consecutive months.