MaxDecisions analyzed nearly 170 million consumer records from June 2021 to October 2022, documenting significant credit deterioration among subprime and near-prime segments amid inflation and unemployment pressure.

The average FICO score fell five points, from 720 to 715, over the period -- with lower credit bands experiencing steeper declines of roughly 20 points in some subprime segments, as supply chain disruptions from 2019-2022 drove widespread price increases and Federal Reserve rate hikes restricted consumer borrowing.

Credit card interest rates surged from about 16% to 19% within 12 months, disproportionately affecting lower-income consumers. MaxDecisions expected lenders to adjust underwriting criteria and see higher acquisition costs, lower conversion, and increased demand for debt consolidation through 2023.