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VantageScore CreditGauge™: Economic Pressures Intensify as Holiday Spending Approaches

A recent report from VantageScore reveals troubling trends in consumer credit, especially impacting lower-income households as they head into the holiday season. The CreditGauge report for October 2025 indicates that delinquencies for borrowers 60 days past due have risen, notably among lower-income groups. This development signals deeper economic challenges in the face of inflation and rising living costs.

Key Findings

1. Increase in Delinquency Rates: Lower-income consumers have witnessed the most substantial year-over-year escalation in credit delinquencies. Since mid-2025, these households are increasingly unable to keep up with their financial obligations, as evidenced by their 60+ days past due rates. This trend highlights the severe impact of ongoing inflationary pressures and a softening labor market on America’s most vulnerable families.

2. Overall Credit Utilization Rising: The VantageScore data shows that overall credit balances have surged to $106,700—a new five-year high. This marks an increase of approximately 0.14% from the previous month, underscoring a growing reliance on credit as households grapple with limited income growth juxtaposed against escalating living expenses.

3. Significant Mortgage Delinquencies: Among various credit products, mortgage credit delinquencies have recorded the largest uptick. The 60–89 days past due sector saw a staggering rise of 12.1%, suggesting that many are facing challenges maintaining home loan payments amidst broader economic strife.

Commentary

Susan Fahy, Executive Vice President and Chief Digital Officer at VantageScore, commented on these considerable shifts: "Since mid-2025, we've observed a consistent rise in delinquency rates for lower-income households compared to their middle- and high-income counterparts. The pressures of inflation and limited access to credit are severely impacting these financially vulnerable groups."

This upsurge in credit utilization reflects a common strategy for many consumers as they approach the holiday spending season, increasingly depending on credit to manage essential expenses rather than covering discretionary purchases. The slowing wage growth and persistent cost of living are steering households toward this trend.

Looking Ahead

The VantageScore CreditGauge highlights impending challenges amidst a backdrop of seasonal spending. As consumers prepare for shopping sprees, many are resorting to credit cards and loans due to insufficient cash flow. The implications of these findings may resonate through the larger economy, prompting calls for more responsible lending practices and increased financial support for those most at risk.

For those invested in following these trends, VantageScore provides valuable insights and tools, available through its monthly CreditGauge updates. Stakeholders can assess credit metrics more thoroughly, comparing today's levels against pre-pandemic figures, which is critical for understanding shifts in consumer behavior and financial wellbeing.

In a climate where financial pressures are mounting, awareness and proactive engagement become increasingly essential. As VantageScore continues to provide these monthly assessments, the hope is that both institutions and consumers will adapt to the changing landscape of credit lending and borrowing practices.

For further comprehensive insights, visit the VantageScore website for the complete CreditGauge report and additional resources that help navigate this evolving financial landscape.