#United States #San Francisco #VantageScore #Credit Delinquencies #Superprime

VantageScore CreditGauge Report - July 2025

Recent data from the VantageScore CreditGauge™ has unveiled alarming trends in consumer credit for July 2025. The report highlights a notable increase in late-stage delinquencies across all credit tiers, primarily driven by the Superprime and Prime segments. According to the findings, delinquencies surpassing 90 days have surged, indicating growing financial stress among consumers.

Overview of the Findings

The report, released on August 25, 2025, highlights a staggering 109% year-over-year increase in late-stage delinquencies within the VantageScore Superprime tier. Meanwhile, the Prime segment recorded a 47% uptick. Furthermore, this trend is coupled with a slight dip in the average VantageScore, which fell to 701, down one point from the previous month. This decline in average scores signals a decrease in overall consumer creditworthiness as financial pressures mount.

Insights from VantageScore Leadership

Susan Fahy, Executive Vice President and Chief Digital Officer at VantageScore, shared insights on the report. She noted that "consumers in the highest VantageScore credit tiers are showing increased signs of credit stress on a year-over-year basis." This observation points to a possible shift in consumer behavior, worsened by persistent inflation affecting essential purchases such as car and house prices.

Trends in Secured Lending

One critical aspect of the report is the differentiation between secured and unsecured lending practices. The data illustrates that while balances for auto loans and mortgages are on the rise, new credit originations are experiencing a decline. This indicates a shifting landscape in consumer borrowing, as individuals may become more cautious about taking on new debt under current economic conditions.

Key Statistics from the CreditGauge Report:

• - Average VantageScore: Dropped to 701 in July 2025.
• - Subprime Growth: The Subprime tier climbed to 18.7% from 18.1%, indicating an increase in consumers likely to face repayment challenges.
• - Delinquency Rates: Mortgage and Auto Loan delinquencies saw modest increases – 0.11 and 0.05 points, respectively – in the early-stage category (30-59 days past due).

Challenges in Mortgage and Auto Loan Originations

As for the secured credit market, auto loan originations contracted to 1.42% in July, down from a peak of 1.76% in April. Mortgage originations have shown little change month-over-month, although they are still slightly higher compared to the previous year. The decline in originations is attributed to tightened lending standards and a decrease in consumer demand, reflecting the cautious sentiments in the current economic climate.

Long-term Implications

The data suggests that consumers are facing significant repayment challenges, especially in the higher credit tiers traditionally viewed as low-risk. As financial conditions tighten and delinquencies grow, it is essential that both consumers and lenders adapt to these changes. Metrics such as the CreditGauge provide critical insights that stakeholders can utilize for better risk assessment and strategic planning.

Conclusion

VantageScore continues to monitor these trends closely through its CreditGauge report and other tools available at VantageScore.com. These tools help stakeholders compare current credit metrics to pre-pandemic data, which is vital as we navigate this evolving financial landscape.

In summary, the latest VantageScore data paints a concerning picture of the U.S. credit landscape, necessitating a thorough understanding and strategic response from lenders, consumers, and policymakers alike.