Consumers continued to largely maintain their credit health in July 2026, characterized by easing delinquencies and low credit card utilization, according to the latest edition of CreditGauge™ from VantageScore. The balance-to-loan (BTL) ratio declined to its lowest level of the year, while credit card utilization was below July 2025 levels despite modest growth in average balances. The average VantageScore credit score decreased slightly to 701 but remained within the narrow 700 to 702 range seen over the past year.
Consumers have continued to enjoy strong momentum in credit health this summer, keeping up with their payments and refraining from using all of their available credit,” said Atif Mirza, EVP and Chief Digital and Insights Officer at VantageScore. “At the same time, personal loans may be an area to keep an eye on as consumers try to stay afloat amid the current high-cost environment.
Watch CreditGauge LIVE for for additional key insights from the July 2026 edition of CreditGauge that include:
DELINQUENCIES EASED ACROSS VANTAGESCORE CREDIT TIERS: In July 2026, overall credit delinquencies improved year-over-year across all stages and credit tiers. This improvement was primarily led by early-stage delinquencies, or 30-59 Days Past Due, which declined to 0.89% from 1.05% in July 2025. Mid-stage delinquencies also fell year-over-year, while late-stage delinquencies held steady. Overall, the broad improvement in early- and mid-stage delinquencies, alongside stable late-stage performance, points to resilient consumer credit performance despite ongoing affordability challenges.
CREDIT CARD UTILIZATION REMAINED BELOW YEAR-AGO LEVELS: Average credit card balances increased modestly to $6.45K in July 2026, up 0.9% from a year earlier, while utilization declined 40 basis points to 30.15% from 30.55% in July 2025. This combination suggests that consumers are using a smaller share of their available credit, potentially reflecting greater caution amid elevated living costs and a higher rate environment.
PERSONAL LOAN ORIGINATIONS LED YEAR-OVER-YEAR GROWTH: Personal loan originations rose to 3.49% in July 2026 from 2.98% in July 2025, a 17% relative increase and the strongest year-over-year growth among major non-mortgage credit products. Year-over-year, Millennials and Gen Z posted the largest gains in personal loan originations, at 0.7% each. This growth is consistent with broader industry trends showing continued expansion in unsecured personal lending as consumers navigate elevated living costs and borrowing expenses.
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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.
