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VantageScore December 2024 CreditGauge Report

In January 2025, VantageScore, a preeminent credit-scoring company, unveiled its December 2024 CreditGauge, shedding light on the state of consumer credit across the United States. The report unveils a complex picture where credit card balances have grown in tandem with inflation and shows signs of caution amongst consumers navigating current economic challenges.

Key Findings from the December 2024 CreditGauge

The average VantageScore 4.0 credit score holds steady at 702, retaining its position within a range of 300 to 850. While credit card balances surged by 2.9% year-over-year—a figure largely attributable to inflation—the adjusted balances indicate minimal growth when inflation is accounted for.

Rising Balances Amid Economic Challenges

This increase suggests that consumers are leveraging credit to meet fundamental needs rather than for discretionary spending. The economic landscape remains turbulent as consumers confront raising costs, higher interest rates, and a wavering job market. As a result, delinquencies have risen, hitting near five-year highs, particularly among vulnerable credit tiers.

Executive Vice President and Chief Digital Officer, Susan Fahy, articulates that consumer spending in 2024 largely adhered to inflation rates. This reflects a significant shift towards using credit cautiously, primarily for essential purchases. The report indicated a substantial decline in overall consumer credit utilization, which fell by 1% to 51.6%, marking the second-lowest rate for 2024.

Delinquency Rates on the Rise

The report further highlights that late payments have escalated across all days-past-due (DPD) periods compared to a year prior. With delinquencies climbing across nearly all VantageScore credit tiers, one notable exception remains the Superprime category, which maintained stability. The economic hurdles faced by consumers are reflected in these figures, emphasizing the necessity of judicious credit management.

A Shift Towards Restraint

Despite a rise in credit card balances, VantageScore reveals a year-over-year decline in the balance-to-loan ratio, dropping by 1.0% to 51.6% by December 2024. This statistic indicates an increasing inclination among consumers to restrain their credit usage despite having access to available credit. Furthermore, a decline in overall credit balances—down by 0.9% month-over-month—suggests a trend towards paying down existing liabilities rather than accruing new debt.

The December CreditGauge indicates consumers are paying down high-cost debts, notably mortgage liabilities, as they opt out of purchasing new homes—another sign of the transformative economic pressures consumers face.

Conclusion

The findings from the December 2024 CreditGauge reflect an intricate balance of growth and caution in consumer credit usage amid persistent inflationary pressures. VantageScore’s tools, including Inclusion360®, RiskRatio™, and MarketGain™, provide deeper insights into these shifting trends, empowering stakeholders with actionable data to navigate a fluctuating economic landscape. The CreditGauge report continues to function as a vital resource for tracking the evolution of consumer credit behaviors, showcasing the ongoing impacts of economic conditions on financial decision-making. For complete insights, visit the VantageScore website.