"Borrowers are making tough choices to prioritize their debt obligations and auto loans are decreasing in priority. Nationwide, the average VantageScore dropped by one point," said Susan Fahy, Executive Vice President and Chief Digital Officer at VantageScore. "It's unusual to see a decline of this size, and we attribute the change to the increased demands of car loan balances and student debt repayment."
Key insights for the February 2025 edition of CreditGauge include:
AUTO LOAN SECTOR STRESSED: Auto Loan delinquencies increased across all Days Past Due (DPD) categories in February 2025, both year-over-year and in comparison to pre-pandemic levels. In addition, Auto Loan balances increased year-over-year by $413 (+1.7%), while originations remained unchanged year-over-year at 1.36%. Consumers struggled to stay current on their auto loans and reduce their account balances. Lenders have also slowed down the issuance of new loans. Potential economic and geopolitical headwinds, including tariffs, could continue to challenge the sector in the coming months.
AVERAGE VANTAGESCORE DECLINED TO 701: The average VantageScore 4.0 credit score dropped by one point to 701 in February 2025, after remaining at 702 for the past 11 months. This decline was driven, in part, by the resumption of student loan reporting, which led to an increase in overall late-stage delinquencies.
OVERALL LATE-STAGE DELINQUENCIES SURGED: Early- and late-stage credit delinquencies rose overall in February 2025 compared to the prior month, and all stages remained elevated over the prior year. Late-stage (90-119 DPD) delinquencies rose sharply month-over-month, from 0.20% to 0.45% in February 2025, as missed student loan payments over 90 days late began to appear on consumer credit files in February. Consumers now face the added demand of catching up to missed student loan payments that have been reported as delinquent, as predicted by a recent quantitative analysis issued by VantageScore. Additionally, new credit originations decelerated month-over-month across all products, led by Personal Loans (-0.58%) and followed by Credit Cards (-0.32%), Auto Loans (-0.08%), and Mortgages (-0.07%).
CreditGauge is a monthly analysis highlighting the overall health of U.S. consumer credit. To download this month's full CreditGauge report, visit the VantageScore website.
Follow VantageScore on LinkedIn and YouTube to watch CreditGauge LIVE, a monthly video series featuring our latest insights on consumer credit data and analysis.
About VantageScore CreditGauge™
CreditGauge is provided both as a monthly analysis to industry stakeholders as well as through a series of interactive tools at VantageScore.com, which also includes Inclusion360®, RiskRatioTM and MarketGainTM. Stakeholders can use the tools to execute additional queries on credit metrics and compare current levels to a pre-pandemic timeframe, starting with January 2020. CreditGauge solely represents the views and analysis of VantageScore and does not necessarily reflect or represent the views of the Nationwide Consumer Reporting Agencies (NCRAs) – Equifax, Experian, and TransUnion.
About VantageScore®
VantageScore is the fastest-growing credit scoring company in the U.S., and is known for the industry's most innovative, predictive, and inclusive credit score models. In 2023, usage of VantageScore increased by 42% to more than 27 billion credit scores. More than 3,400 institutions, including 8 of the top 10 banks, use VantageScore credit scores to provide consumer credit products including credit cards, auto loans, personal loans and mortgages. The VantageScore 4.0 credit scoring model scores 33 million more people than traditional models. With the FHFA mandating the use of VantageScore 4.0 for Fannie Mae and Freddie Mac guaranteed mortgages, the company is also ushering in a new era for mortgage lending and helping to close the homeownership gap.
VantageScore is an independently managed joint venture company of the three Nationwide Consumer Reporting Agencies (NCRAs) – Equifax, Experian, and TransUnion.
SOURCE VantageScore
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