Why Americans Are Falling Behind on Auto Loans At Their Highest Level Ever

In this episode of the Odd Lots podcast, hosts Joe Weisenthal and Tracy Alloway interview Rikard Bandebo, the Executive Vice President, Chief Strategy Officer, and Chief Economist at VantageScore, a credit scoring company, to gain insights into the current state of the consumer. They discuss the complexities of measuring consumer financial health, the nuances of credit scoring, and the factors influencing consumer behavior, including the K-shaped economy, mortgage rates, and the impact of the resumption of student loan payments. Bandebo explains how VantageScore differs from traditional credit scoring methods, incorporating trended data and AI to assess risk and expand access to credit, while also emphasizing the importance of considering external economic factors and wealth in addition to income when evaluating creditworthiness. The conversation also covers auto loan delinquencies, the role of insurance costs, and the potential fragility of the consumer in the face of rising pressures.