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CreditGauge Report: Lending Trends and Consumer Credit Health in September 2025

The recent CreditGauge report by VantageScore, released on October 28, 2025, highlights critical shifts in the lending landscape as banks moderate new consumer credit activities. The slowdown in lending comes after a period of increased issuance and indicates a more cautious stance from financial institutions towards new credit offerings.

Overview of Lending Activity

Consumer credit activity has shown a notable cooling in September 2025, especially in the realms of credit cards and auto loans. Following an upward trajectory during the summer months, the month-over-month decline indicates that banks are revisiting their lending strategies. According to Susan Fahy, EVP and Chief Digital Officer at VantageScore, "Banks are reining in new lending, suggesting an awareness of emerging economic pressures."

As lending voluntarily cools, the average VantageScore 4.0 credit score remains steady at 701, indicating that while credit qualifications are stable, the environment for obtaining new loans is becoming increasingly competitive and restrictive.

Mortgage Credit Delinquencies on the Rise

Compounding concerns about consumer credit health are the rising rates of mortgage credit delinquencies across all stages. Data reveals that late-stage delinquencies—those accounts 90-119 days past due—have reached their highest point since January 2020. Notably, this increase marks a significant year-over-year rise, underscoring heightened risks for lenders and borrowers alike in the current economic climate.

Early-Stage Delinquency Trends

Early-stage delinquencies, categorized as accounts 30-59 days past due, have also witnessed an upward trend, rising to 1.13% in September from 1.02% in August. This escalation suggests that consumer strain is growing and approaching pre-pandemic levels, where the rate hovered at 1.15%. The implications of these figures testify to the potential challenges faced by consumers as they balance their financial obligations amidst ongoing economic uncertainty.

The Broader Economic Context

This slowing in new credit originations and the uptick in delinquencies must be contextualized against a backdrop of broader economic indicators. High-interest rates, along with affordability issues, contribute to a challenging environment for both borrowers and lenders. This situation could further amplify risks associated with lending if the credit quality deteriorates, thus resulting in banks adopting a more conservative approach.

CreditGauge serves as an essential monthly examination of the health of U.S. consumer credit, allowing stakeholders to make informed decisions based on the most current data available. For further insights into the state of consumer credit, stakeholders can download the full September report from the VantageScore website or tune into the CreditGauge LIVE video series on platforms such as LinkedIn and YouTube.

About VantageScore

VantageScore has quickly become a key player in the credit scoring landscape, celebrated for its innovative and inclusive scoring models. The wide adoption of VantageScore reflects its significant impact on lending practices, with its scoring model reaching broader demographics compared to traditional scoring methods. In 2024 alone, VantageScore reported a remarkable 55% increase in usage, driven by a demand for more accurate predictions and in-depth consumer insights.

This report signifies a turning point as consumers face growing credit pressures while institutions reassess their lending strategies to mitigate risk effectively. The interplay between these dynamics shapes the future of consumer credit and financial health in the U.S.