“At VantageScore, we look at all the consumer data across America and no, we are not at that major inflection point where there’s going to be a catastrophic event that alters our economy,” said Silvio Tavares, President and CEO of VantageScore. “What is worrying is the bottom of the K, where we are seeing a lot of consumers increase in early-stage delinquencies, which have gone back to levels not seen since January 2020. The overall economy is strong, but the reality is there is some weakening at the lower end of the K.”
During a discussion at the Wall Street Journal Leadership Institute’s CFO Council Summit, Tavares shared insights on the so-called “K-shaped economy,” as gleaned from VantageScore’s CreditGauge analysis, with financial decision-makers from the world’s most influential companies.
Tavares added: “In terms of the K-shaped economy, the top of the K is doing increasingly well, while the bottom is increasingly challenged. Those folks tend to be younger, they tend not to be homeowners, and as a result, they are struggling because they are not protected from the biggest inflationary pressure and the biggest expense for households: housing costs.”
He went on to highlight the ways in which younger consumers are vulnerable to economic pressures due to their lack of homeownership:
“If you’re young, you can’t get into the housing market, and you are exposed to it. I think this will be one of the biggest issues of the next ten years: how do we get more consumers into homes so they can protect themselves from the inflationary shock of rental prices?”
Additionally, Tavares looked at the top of the “K,” where more affluent consumers are buoying economic data:
“At the top of the K, it’s clear that that is a very vibrant and healthy group. We are seeing more economic activity, and it is overwhelming what is happening at the bottom, which is why when you look at the big numbers, the economy is doing very well.”
To read the full February 2026 CreditGauge, visit VantageScore’s website: https://vantagescore.com/resources/knowledge-center/press_releases/vantagescore-creditgauge-february-2026-average-vantagescore-increases-to-701-as-lenders-boost-new-credit-despite-macro-headwinds
