VantageScore Reports Late-Stage Credit Delinquencies Increase Across All Credit Tiers
(Chart courtesy of VantageScore)
Late-stage delinquencies increased across all credit tiers in July, according to VantageScore, San Francisco.
VantageScore’s latest CreditGauge report found that credit delinquencies over 90 days late were up 109% year-over-year in the superprime segment, while delinquencies in the prime segment saw a 47% increase year-over-year.
“Consumers in the highest VantageScore credit tiers are showing increased signs of credit stress on a year-over-year basis,” said Susan Fahy, executive vice president and chief digital officer at VantageScore. “We’re also seeing a marked divergence in secured versus unsecured lending. Balances are increasing for auto loans and mortgages, while new credit originations are down.”
Fahy noted sustained inflation for car and house prices is driving higher balances in those credit categories.
The average VantageScore 4.0 credit score slipped to 701 in July, down one point from June. VantageScore’s subprime tier grew by 0.6 points from 18.1% to 18.7% between July 2023 and July 2025, swelling the ranks of consumers more likely to face repayment challenges. Conversely, the VantageScore prime tier shrunk by 1.4% over the same period.
Mortgage, Auto Loan Delinquencies and Balances Increase
Mortgage and auto loan credit delinquencies saw the largest year-over-year uptick in the early-stage category (30-59 days past due), up 0.11 and 0.05 points, respectively. Auto loan and mortgage balances also increased on a month-over-month basis, while originations decreased for auto loans and held steady for mortgages.
Secured Originations Soften
Auto loan originations fell to 1.42% in July after peaking at 1.76% in April, VantageScore reported. Mortgage originations were relatively flat from June to July 2025 but stood 0.04% higher than in July 2024. “These softening trends in originations are likely due to a combination of reduced demand and tighter lending standards,” the report said.
