New report shows credit delinquencies rising across all tiers

“Consumers in the highest VantageScore credit tiers are showing increased signs of credit stress on a year-over-year basis,” said Susan Fahy, executive vice president and chief digital officer at VantageScore. She added that the divergence between secured and unsecured lending is becoming more pronounced.

Balances for mortgages and auto loans rose in July, while new credit originations declined. “Sustained inflation for car and house prices is driving higher balances in these credit categories,” Fahy said.

The report showed that mortgage and auto loan delinquencies recorded the steepest increases in the early-stage category, with past-due accounts of 30–59 days up 0.11 and 0.05 percentage points, respectively. At the same time, balances in both categories expanded month over month.

Auto loan originations fell to 1.42% in July after reaching a peak of 1.76% in April, while mortgage originations remained steady from June but edged 0.04% higher than in July 2024. VantageScore said the slowdown in originations likely reflects both reduced consumer demand and tighter lending standards.

The Subprime segment of US consumers—those most vulnerable to repayment difficulties—expanded to 18.7% in July from 18.1% two years earlier. The Prime tier, meanwhile, contracted by 1.4% over the same period.