According to VantageScore’s CreditGauge, a monthly analysis of U.S. consumer credit health, Americans’ credit scores are getting increasingly polarized. A recent analysis conducted by Money and based on CreditGauge data found that “compared to last year, 1.2 million more Americans are now considered “subprime borrowers” — or those who have credit scores in the 300 to 600 range.”

The tale of two consumers is becoming more pronounced,” said Susan Fahy, EVP and Chief Digital Officer at VantageScore.

Fahy suggested the high-interest rate environment — engineered by the Federal Reserve to combat inflation — could be behind the trend. Americans with near-perfect credit are still able to spend and borrow as they need. Meanwhile, VantageScore “subprime consumers are finding it increasingly difficult to stay current on credit payments,” she added.

Read more on Money’s analysis of CreditGauge data here: Credit Score Trouble: 1.2 Million More Americans Just Became ‘Subprime Borrowers’

Explore the latest CreditGauge insights: VantageScore CreditGauge