VantageScore: Consumer Credit Stays Healthy; Payment Discipline Holds Firm
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Consumer credit conditions remained fundamentally healthy in June, but early signs of payment stress began to emerge, the latest VantageScore CreditGauge report said.
The report noted the average VantageScore 4.0 credit score rose one point to 702, reversing the modest dip seen late last year and marking its highest level in the past 12 months.
“The improvement was underpinned by continued payment discipline among consumers,” the report said. “Credit card delinquency rates improved across all three delinquency stages compared to June 2025, signaling that borrowers are prioritizing their revolving credit even amid persistent affordability pressures. Overall credit utilization also declined, both from the prior month and a year earlier, with the balance-to-loan ratio falling to 49.61%, well below the pre-pandemic level of 54.1%. Taken together, these trends suggest consumers are being deliberate about how much new debt they take on.”
But not every signal was positive in June. Early-stage delinquencies (30-59 days past due) rose to 0.98%, up nine basis points from a year before (though still below the pre-pandemic benchmark of 1.15%). VantageScore called the increase broad-based, touching every credit tier, including a notable rise among Subprime and Nearprime borrowers.
“Mortgage lending showed the most pronounced shift, with both early- and late-stage delinquencies rising on a year-over-year basis, even as mid-stage delinquencies improved modestly,” the report said. Importantly, VantageScore found that early credit stress has not migrated into more serious delinquency. Late-stage delinquencies (90-119 days past due) held at 0.21%, matching June 2025 levels and remaining below pre-pandemic norms. “That pattern of borrowers falling slightly behind but few progressing to severe delinquency points to financial strain that, for now, remains contained rather than compounding,” the report said.
