VantageScore Reports Credit Scores Down in December

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VantageScore, San Francisco, found that in December the average Vantage Score 4.0 credit score declined by one point to 700, indicating that consumer credit conditions are softening.

That’s a decrease of two points year-over-year and one point from the previous month.

Overall credit delinquencies increased across all late payment stages, with late-stage mortgage delinquencies rising sharply year-over-year.

“Consumers in the 2025 holiday season showed some softening in credit health, with the average VantageScore 4.0 credit score falling to 700, an average last seen in early 2023,” said Susan Fahy, EVP and chief digital, data and technology officer at VantageScore. “Higher mortgage and auto loan delinquencies reflect the effects of elevated interest rates and prices in today’s housing and auto markets.”

In December, mortgage delinquencies increased across all stages year-over-year. The most pronounced growth was in late-stage delinquencies, up by 18.6%.

The average mortgage balance was essentially flat from November, at $271,600, but up by $7,887, or 3%, year-over-year. The balance-to-loan ratio fell by 0.03% to 79.39%, indicating steady home values alongside slight equity accumulation in a higher-rate landscape.

From November, mortgage originations declined across most age groups, with Gen Z’s activity down by the most at 22%. Year-over-year, originations saw an increase for all generations, except for Gen Z’s drop by 7.1%.