The latest CreditGauge report from VantageScore shows that American consumers entered the fall of 2025 with slightly strained credit profiles. The national average VantageScore 4.0 held firm at 701, unchanged from August but one point lower than September 2024.

VantageScore describes this as a “sign of normalization” after a year of heightened borrowing and repayment activity. Although balances continue to rise (driven largely by higher loan values for mortgages and auto loans) credit utilization rates have remained steady, suggesting most consumers are managing debt responsibly despite elevated borrowing costs.

Delinquencies Edge Towards Pre-Pandemic Levels

Delinquency rates rose modestly in September, led by mortgage accounts, which saw the sharpest year-over-year increases across all delinquency stages. Overall, 30–59 days past due (DPD) rose to 1.13%, up from 1.02% in August and nearing pre-pandemic levels of 1.15%.

Late-stage delinquencies (90–119 DPD) remained at 0.22%, unchanged for the third month in a row but higher than last year. Mortgage delinquencies rose in every category, including a 12.7% jump in early-stage delinquencies and a 7.6% increase in late-stage ones.

Even consumers with traditionally higher credit scores showed signs of strain. Among Prime borrowers (661–780), late-stage delinquencies rose by 54% from last year, while Near-prime borrowers (601–660) saw a 44% rise. In contrast, Super-prime consumers (781–850) experienced a small improvement, suggesting lower-risk borrowers remain relatively resilient.

Balances Increased Across Products

Average balances climbed across most credit products. The typical consumer carried $106,500 in total credit balances, up 1.3% from last year and nearly back to record highs. Yet the balance-to-loan ratio held nearly flat at 50.79%, signaling stable usage patterns.

By category:

• Mortgage balances rose 2.8% to $270,300, reflecting high home prices and interest rates.
• Auto loans averaged $24,700, up 1.7% year over year.
• Personal loans inched up to $17,400, with a balance-to-loan ratio of 70.9%.
• Credit card balances fell slightly to $6,400, and utilization dipped to 30.68%, indicating restrained revolving credit use as households prepared for the holiday season.

Younger borrowers remain the most active participants in new credit:

• Gen Z led in personal loans (4.4%) and credit cards (4.2%) but saw a slowdown in mortgage activity (1.42%, down from 1.57% in August).
• Millennials followed closely behind, maintaining consistent participation in all categories.
• Older generations (including Boomers and the Silent Generation) remained the least active borrowers, particularly in unsecured credit.

What It Means For Consumers

Despite modest credit softening, the data suggest Americans are maintaining control over their debt.

Still, the rise in mortgage delinquencies and the drift toward lower credit tiers could signal stress building beneath the surface. Borrowers with adjustable-rate mortgages or large auto loans may feel pressure as payments remain high.

Households can take several steps to protect their credit:

• Monitor balances and utilization to stay below 30% of available credit.
• Prioritize on-time payments, since early delinquencies remain the leading predictor of credit deterioration.
• Consider refinancing or consolidation options if monthly payments have grown due to higher interest rates.

The September 2025 CreditGauge shows an economy in a delicate balance: consumers are managing, but rising loan sizes and slight upticks in delinquencies hint at fatigue after years of elevated borrowing costs.

As the holiday season approaches, households appear cautious – spending steadily but avoiding overextension.

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