Average Canadian FICO Score Drops from 762 to 760, Mirroring Modest Consumer Debt Level Increases and Economic Uncertainty
FICO reports that the average Canadian FICO® Score has decreased from 762 to 760 in April 2023. This decline reflects increasing financial strain among consumers, with notable increases in missed payments and debt levels. Key findings show a 9.6% year-over-year increase in 90+ days past due credit obligations, while industry-specific delinquencies rose 12.5% for auto loans and 14.2% for real estate loans. Credit card debt is approaching pre-pandemic levels, with average balances up 4.9% year-over-year. New credit activity has returned to pre-pandemic levels at 33.5%, suggesting consumers may be seeking additional credit to manage rising debt and interest rates.
FICO riporta che il punteggio medio FICO® Score canadese è diminuito da 762 a 760 nell'aprile 2023. Questo calo riflette un crescente stress finanziario tra i consumatori, con aumenti notevoli nei pagamenti mancati e nei livelli di debito. I risultati chiave mostrano un incremento del 9,6% anno su anno nelle obbligazioni creditizie in ritardo di oltre 90 giorni, mentre le inadempienze specifiche per settore sono aumentate del 12,5% per i prestiti auto e del 14,2% per i prestiti immobiliari. Il debito delle carte di credito sta raggiungendo i livelli pre-pandemia, con saldi medi in aumento del 4,9% anno su anno. L'attività di credito nuova è tornata ai livelli pre-pandemia al 33,5%, suggerendo che i consumatori potrebbero cercare ulteriore credito per gestire l'aumento del debito e dei tassi di interesse.
FICO informa que el puntaje promedio FICO® Score canadiense ha disminuido de 762 a 760 en abril de 2023. Esta disminución refleja una creciente presión financiera entre los consumidores, con aumentos notables en los pagos atrasados y en los niveles de deuda. Los hallazgos clave muestran un aumento del 9.6% interanual en obligaciones crediticias con más de 90 días de morosidad, mientras que las morosidades específicas de la industria aumentaron un 12.5% para los préstamos automotrices y un 14.2% para los préstamos inmobiliarios. La deuda de tarjetas de crédito se aproxima a los niveles previos a la pandemia, con saldos promedio aumentando un 4.9% interanual. La actividad crediticia nueva ha regresado a los niveles anteriores a la pandemia en un 33.5%, lo que sugiere que los consumidores pueden estar buscando crédito adicional para gestionar el aumento de la deuda y las tasas de interés.
FICO는 2023년 4월 캐나다의 평균 FICO® Score가 762에서 760으로 감소했다고 보고합니다. 이러한 감소는 소비자들 사이에서 증가하는 재정적 압박을 반영하며, 연체된 지불 및 부채 수준의 눈에 띄는 증가가 있습니다. 주요 발견에 따르면, 90일 이상 연체된 신용 의무가 전년 대비 9.6% 증가했으며, 산업별 연체율은 자동차 대출의 경우 12.5%, 부동산 대출의 경우 14.2% 증가했습니다. 신용 카드 부채는 팬데믹 이전 수준에 접근하고 있으며, 평균 잔액은 전년 대비 4.9% 증가했습니다. 신규 신용 활동은 팬데믹 이전 수준으로 돌아갔으며 33.5%에 이르렀고, 이는 소비자들이 증가하는 부채와 이자율을 관리하기 위해 추가 신용을 찾고 있을 수 있음을 시사합니다.
FICO rapporte que le score moyen FICO® Score des Canadiens a diminué de 762 à 760 en avril 2023. Ce déclin reflète une pression financière croissante parmi les consommateurs, avec des augmentations notables des paiements manqués et des niveaux d'endettement. Les principales conclusions montrent une augmentation de 9,6 % d'une année sur l'autre des obligations de crédit en retard de plus de 90 jours, tandis que les défauts spécifiques à l'industrie ont augmenté de 12,5 % pour les prêts automobiles et de 14,2 % pour les prêts immobiliers. La dette par carte de crédit approche des niveaux d'avant la pandémie, avec des soldes moyens en hausse de 4,9 % d'une année sur l'autre. L'activité de crédit nouvelle est retournée à des niveaux pré-pandémiques à 33,5 %, ce qui suggère que les consommateurs pourraient rechercher un crédit supplémentaire pour gérer la montée de la dette et des taux d'intérêt.
FICO berichtet, dass der durchschnittliche kanadische FICO® Score im April 2023 von 762 auf 760 gesunken ist. Dieser Rückgang spiegelt den zunehmenden finanziellen Druck bei den Verbrauchern wider, wobei erhebliche Anstiege bei versäumten Zahlungen und Schulden verzeichnet werden. Wichtige Erkenntnisse zeigen, dass die über 90 Tage überfälligen Kreditverpflichtungen im Jahresvergleich um 9,6% gestiegen sind, während die zahlungsunfähigen Kredite in bestimmten Branchen um 12,5% bei Autokrediten und um 14,2% bei Immobilienkrediten gestiegen sind. Der Kreditkartenschulden nähert sich den Niveaus vor der Pandemie, mit einem Anstieg des durchschnittlichen Saldos um 4,9% im Jahresvergleich. Die neue Kreditaktivität hat mit 33,5% das Niveau vor der Pandemie erreicht, was darauf hindeutet, dass die Verbraucher möglicherweise zusätzliches Kredit suchen, um mit steigenden Schulden und Zinssätzen umzugehen.
- None.
- Average FICO Score declined from 762 to 760
- 90+ days past due credit obligations increased 9.6% year-over-year
- Auto loan delinquencies (30+ days) increased 12.5%
- Real estate loan delinquencies increased 14.2%
- Credit card balances up 4.9% year-over-year
- Credit card utilization rates increasing
Insights
The
For FICO, this data suggests increased demand for credit risk assessment tools from lenders, but also highlights rising default risks that could impact lending volumes. The company's scoring system is proving valuable in identifying these emerging credit risks, reinforcing its essential role in the lending ecosystem during economic uncertainty.
FICO® Scores reflect consumers credit health standing
The FICO® Score is the industry standard measure of credit risk that help enable lenders to make more accurate decisions about a borrower’s credit risk and reflects the credit history data maintained by the two Canadian consumer reporting agencies (CRAs). Relied on by Canadian lenders and credit unions, the FICO Score continuously evolves and reflects underlying changes in credit behavior.
“The updated data shows that more consumers are showing signs of financial strain post-pandemic, as they confront challenges such as an inflated cost of living. Due to the current state of economic uncertainty in
Breaking Down the Average FICO® Score
As a benchmark of Canadian consumer risk, the national average explains the credit health standing of consumers nationwide. Key factors impacting the average FICO® Score in
-
Missed payments continue to rise: The population of consumers who are 90+ days past due on credit obligations in the last six months has increased
9.6% in relative terms year-over-year. -
Increase in delinquencies by industry:
1.8% of auto loan borrowers have been 30+ days past due in the past year, an increase of12.5% relative to 2023. For real estate loans, the same metric has increased by14.2% . For bankcards, delinquency rates also continue to rise, albeit more modestly than their auto finance and real estate counterparts. -
Debt levels continue to rise: Credit card debt for Canadian consumers has been increasing since the pandemic lows of April 2021, and now sits just shy of pre-pandemic levels. Average credit card balances for Canadian credit consumers are up
4.9% year over year, while average credit card utilization continues to shift higher as well. -
Increase in new credit activity: Consumers who have opened one or more new accounts in the last year have steadily increased to
33.5% , which is nearly identical to pre-pandemic levels. As some Canadians begin to struggle with rising credit card debt and higher interest rates, they may be seeking and obtaining new credit to help manage rising debt levels and higher pricing on those debts.
Why is the FICO® Score Important
Access to credit is a key building block for economic inclusion and wealth building. FICO® Scores have helped to enable lenders to make more precise and accurate lending decisions for over 30 years, helping millions of Canadian consumers gain access to the credit they need to do things like purchase a car, buy a home, or get a credit card. The FICO® Score Open Access program promotes credit transparency by enabling lenders to provide their customers with the ability to access their FICO Score for free. Lenders interested in the FICO Score solutions in
The average FICO® Score has become a key barometer of overall financial health for the Canadian population. A more in-depth analysis of the average FICO Score in
About FICO
FICO (NYSE: FICO) powers decisions that help people and businesses around the world prosper. Founded in 1956, the company is a pioneer in the use of predictive analytics and data science to improve operational decisions. FICO holds more than 200 US and foreign patents on technologies that increase profitability, customer satisfaction and growth for businesses in financial services, insurance, telecommunications, health care, retail and many other industries. Using FICO solutions, businesses in more than 80 countries do everything from protecting 4 billion payment cards from fraud, to improving financial inclusion, to increasing supply chain resiliency. The FICO® Score, used by
Learn more at https://www.fico.com/en.
Join the conversation at https://x.com/FICO_corp & https://www.fico.com/blogs/
For FICO news and media resources, visit https://www.fico.com/en/newsroom.
FICO is a registered trademark of Fair Isaac Corporation in the
View source version on businesswire.com: https://www.businesswire.com/news/home/20241120830694/en/
Julie Huang
press@fico.com
Source: FICO
FAQ
What is the current average FICO Score in Canada for 2024?
How much have credit card balances increased in Canada?
What is the percentage of new credit activity in Canada?
How much have auto loan delinquencies increased in Canada?
