"The combination of rising mid-to-late-stage credit delinquencies and rising credit balances suggests a growing debt burden that some consumers are increasingly struggling to manage," said Susan Fahy, Executive Vice President and Chief Digital Officer at VantageScore. "This is both a short- and long-term trend. Later-stage delinquencies are key because they are an indication that late payments will likely not go away anytime soon."
Key insights for the January 2025 edition of CreditGauge include:
AUTO LOAN DELINQUENCIES ROSE: Higher borrowing costs and post-holiday spending likely drove the notable increase in Auto Loan delinquencies in January. Overall mid- and late-term delinquencies rose to the highest levels since January 2020, indicating growing financial strain among borrowers already behind on payments.
NEW CREDIT CARD ACCOUNT GROWTH DECLINED: Credit Card originations dropped 0.23% monthly in January 2025, driven by reduced post-holiday consumer demand. They also remained virtually flat (+0.04%) year over year. The sharp month-over-month decrease indicates that borrowers may be prioritizing managing their existing debt rather than taking on new revolving credit.
CREDIT BALANCES ROSE SHARPLY: In January 2025, overall credit balances increased to $105,700, up $1,049 (+1.0%) from December 2024, representing a five-year high. Mortgages largely drove the increase. Credit balances also ticked up by $1,350 (+1.3%) compared to January 2024. Elevated housing costs and high interest rates are making it more challenging for consumers to pay down mortgage debt.
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®, RiskRatio™ and MarketGain™. 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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