• Late-Stage Subprime Delinquencies Rise to 2.5% Year-Over-Year
• Auto Loan Delinquencies Show Highest Increase Across Credit Products
• New Credit Card Originations Decline as Banks Tighten Lending Standards

SAN FRANCISCO — July 29, 2025 — Subprime credit delinquencies increased in June, growing 2.5% year-over-year. There is growing repayment distress among the lowest VantageScore credit tiers, according to the latest edition of CreditGauge™ published today by VantageScore. Credit delinquencies increased across most products and delinquency bands, except for Credit Cards. Credit Cards showed only modest improvements across all Days-Past-Due (DPD) categories. The average VantageScore credit score remained at 702.

A growing portion of VantageScore Subprime consumers are struggling to get current on credit payments and are progressing into more severe stages of delinquency. We see indications of deepening strain in most credit sectors, including Auto Loans.

– Susan Fahy, EVP and Chief Digital Officer at VantageScore

Watch CreditGauge LIVE for additional key insights from the June 2025 edition of CreditGauge that include:

AUTO LOAN DELINQUENCIES SHOW HIGHEST INCREASE ACROSS PRODUCTS: Auto Loan credit delinquencies showed the clearest upward trend amongst all credit products, signaling renewed borrower strain after increased new credit originations in recent months. Delinquencies increased across all Days-Past-Due (DPD) categories, both month-over-month and year-over-year, and surpassed pre-pandemic levels.

MID-, LATE-STAGE CREDIT DELINQUENCIES ON THE RISE: Mid-stage (60-89 DPD) and late-stage (90-119 DPD) credit delinquencies rose modestly both month-over-month and year-over-year. This suggests that a portion of borrowers are struggling to resolve their debts and are progressing into more severe stages of delinquency. Additionally, early-stage delinquencies (30-59 DPD) for Auto Loans and Mortgages increased year-over-year by 0.07% and 0.06%, respectively.

NEW CREDIT CARD ACCOUNT ORIGINATIONS DECLINE: In June 2025, Credit Card originations declined month-over-month by 0.05%, as lenders became more cautious about extending credit. Year-over-year, credit originations have declined across Auto Loans (-0.07%), Credit Cards (-0.04%), and Personal Loans (-0.04%) compared to June 2024, signaling somewhat tighter lending conditions.

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 2024, usage of VantageScore increased by 55% to hit 42 billion credit scores. More than 3,700 institutions, including the top 10 U.S. banks, use VantageScore credit scores or digital tools to provide consumer credit products and generate greater insights into consumer behavior. 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 and owners include the three Nationwide Consumer Reporting Agencies (NCRAs) - Equifax, Experian, and TransUnion.