Remanent magnetization and self-demagnetization change the magnitude and direction of the magnetization vector, which complicates the interpretation of magnetic data. To deal with this problem, we evaluated a method for inverting the distributions of 2D magnetization vector or effective susceptibility using 3C borehole magnetic data. The basis for this method is the fact that 2D magnitude magnetic anomalies are not sensitive to the magnetization direction. We calculated magnitude anomalies from the measured borehole magnetic data in a spatial domain. The vector distributions of magnetization were inverted methodically in two steps. The distributions of magnetization magnitude were initially solved based on magnitude magnetic anomalies using the preconditioned conjugate gradient method. The preconditioner determined by the distances between the cells and the borehole observation points greatly improved the quality of the magnetization magnitude imaging. With the calculated magnetization magnitude, the distributions of magnetization direction were computed by fitting the component anomalies secondly using the conjugate gradient method. The two-step approach made full use of the amplitude and phase anomalies of the borehole magnetic data. We studied the influence of remanence and demagnetization based on the recovered magnetization intensity and direction distributions. Finally, we tested our method using synthetic and real data from scenarios that involved high susceptibility and complicated remanence, and all tests returned favorable results.