VantageScore CreditGauge™ October 2025: Credit Delinquencies for Lower-Income Consumers Rise Modestly as Overall Credit Utilization Increases Entering Holiday Spending Season
- Lower-Income Consumers Experience Economic Stress, Leading Year-Over-Year Increases in 60+ Days Past Due Delinquencies
- Overall Credit Balances Increase Entering the Holiday Shopping Season
- Mortgage Credit Delinquencies Show Most Significant Increase Across Products
SAN FRANCISCO, Nov. 20, 2025 /PRNewswire/ -- Since mid-2025, lower-income borrowers have led year-over-year increases in delinquencies 60+ Days Past Due (DPD), a trend that continued in October 2025, according to the latest edition of CreditGauge™ by VantageScore. Originations in Credit Cards and Mortgages saw modest gains, while Personal and Auto Loans remained muted. The average VantageScore 4.0 credit score remained stable at 701 in October.
"Since mid-2025, lower-income households are seeing increased delinquency rates year-over-year compared to middle- and high-income groups," said Susan Fahy, EVP and Chief Digital Officer at VantageScore. "Overall credit balances have continued to increase throughout 2025, reaching a five-year high, while credit utilization rates have risen month-over-month since September 2025. As consumers enter the holiday spending season, many are relying more on available credit to contend with a persistently higher cost of living."
Watch CreditGauge LIVE for additional key insights from the October 2025 edition of CreditGauge that include:
LOWER-INCOME CONSUMERS LEAD 60+ DPD LATE PAYMENTS: Lower-income consumers are leading year-over-year increases in delinquencies 60 DPD or over. Since July 2025, delinquencies have risen more sharply among lower-income consumers, suggesting a disproportionate impact of persistent inflation, labor market softening and reduced access to credit on financially vulnerable households.
OVERALL CREDIT BALANCES RISE ENTERING HOLIDAY SHOPPING SEASON: In October 2025, the average credit balance edged up to $106,700, an increase of $153 (+0.14%) from the previous month, reaching a new five-year peak. The ongoing increase in average balances suggests sustained borrowing demand despite rising interest rates, implying that consumers are increasingly relying on credit to cover expenses due to slower wage growth and higher living costs.
MORTGAGE CREDIT DELINQUENCIES SEE BIGGEST UPTICK : Mortgage credit delinquencies in all stages experienced the most significant increase across products in October 2025. This was driven primarily by the 60–89 DPD category, which rose by 12.1%, the highest relative increase among all credit products.
Follow VantageScore on LinkedIn and YouTube to watch CreditGauge LIVE, a monthly video series featuring our latest insights on consumer credit data and analysis.
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.
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 2024, usage of VantageScore increased by 55% to hit 42 billion credit scores. More than 3,700 institutions, including nine of the top 10 U.S. banks, use VantageScore credit scores and digital tools to provide consumer credit products or generate greater insights into consumer behavior. The VantageScore 4.0 credit scoring model scores 33 million more people than traditional models. With the FHFA allowing the immediate 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.
VantageScore is an independent joint venture company owned by Equifax, Experian and TransUnion.
SOURCE VantageScore
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