VantageScore CreditGauge™ May 2025: May Mortgage Loan Delinquencies Increase the Most Among All Credit Products

• Early-Stage Credit Delinquencies Rise Across Most VantageScore Credit Tiers
• Average Credit Balances Reach New Highs

SAN FRANCISCO, June 26, 2025 /PRNewswire/ -- May Mortgage loans led an increase in early- and mid-stage delinquencies across all credit categories, according to the new CreditGauge™ published today by VantageScore. Home loans saw the largest year-over-year increase in the 30-59 Days Past Due (DPD) payment category. Mortgage delinquencies rose from 0.92% in the prior month to 1.03% in May, an indication that the housing sector may be demonstrating early signs of borrower financial stress.

"The rise in early and mid-stage delinquencies this month indicates potential financial strain among some consumers," said Susan Fahy, EVP and Chief Digital Officer at VantageScore. "While consumer behavior generally remains positive, particularly among younger borrowers, mortgages may be an area to watch for increasing credit stress, particularly for traditionally less-risky segments with credit scores above VantageScore 660."

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

MORTGAGE LOANS EXPERIENCE A SURPRISE INCREASE IN DELINQUENCIES: Consumers typically prioritize their payment of mortgage obligations compared to other credit payments. However, in May, Home loans saw the largest year-over-year increase in the 30-59 Days Past Due (DPD) payment category. Mortgage delinquencies rose from 0.92% in the prior month to 1.03% in May.

EARLY-STAGE DELINQUENCIES RISE ACROSS MOST CREDIT TIERS: Credit delinquencies in the 30–59 Days Past Due (DPD) category rose year-over-year in May 2025 across VantageScore Nearprime, Prime and Superprime segments. While Subprime late payments declined slightly year over year, somewhat elevated delinquency levels in other VantageScore credit tiers suggest that short-term financial stress is possibly beginning to affect even traditionally lower-risk borrowers.

AVERAGE CREDIT BALANCES REACH NEW HIGHS: The average credit balance rose to $106,000 in May—an increase of $249 (+0.24%) from April—marking the fifth straight month at a five-year high. Year-over-year, balances grew by $1,479 (+1.4%) from May 2024. Mortgage balances showed the largest uptick among product lines, rising 2.8% year-over-year.

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.  

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SOURCE VantageScore