Tags: consumer | debt | payments | lag

Even Top-Credit Consumers Are Falling Behind

Even Top-Credit Consumers Are Falling Behind
(Olivier Le Moal/Dreamstime)

Monday, 25 August 2025 09:05 AM EDT

U.S. consumers with the highest credit scores are starting to fall behind in debt repayments, credit scoring company VantageScore said in a report published Monday, in a sign that Americans' financial health may be deteriorating more broadly.

Late repayments over 90 days were up 109% year-over-year in the VantageScore superprime segment, while the prime segment posted a 47% increase year-over-year.

In relative terms the sharpest increase in delinquencies was seen in superprime and prime customers who are typically considered the most financially secure, Rikard Bandebo, chief economist at VantageScore, said.

"Even though in absolute terms the increase is modest, it shows that even consumers considered the most credit-healthy are also beginning to see some stress with regard to repayments."

There has also been an uptick in late-stage delinquencies in auto loans and mortgages, as consumers grapple with budget strains, Bandebo added.

Defaults in early stage, which constitute late repayments between 30 days and 59 days, increased at the fastest pace in auto loans and mortgages.

"Defaults on secured loans, such as mortgages, typically happen only when the pressure on finances is too much for the consumer to manage," he said.

Prime customers have credit scores between 661-780, while super prime customers have scores between 781-850, according to VantageScore.

New originations for auto loans and mortgages also fell in July, according to VantageScore. Americans are getting more sensitive to price changes. Walmart , the world's largest retailer, has scooped up market share from rivals as wealthier consumers frequent the store more often, worried about the effects of tariffs on prices.

U.S. consumer sentiment also softened in August as households anticipated higher goods prices because of import tariffs. Inflation concerns have been weighing on consumers.

Last month, U.S. banking giants said consumers remained in good shape, but warned of potential weakness ahead. There were concerns that spending could cool off in the second half of this year. 

© 2025 Thomson/Reuters. All rights reserved.


StreetTalk
U.S. consumers with the highest credit scores are starting to fall behind in debt repayments, credit scoring company VantageScore said in a report published Monday, in a sign that Americans' financial health may be deteriorating more broadly.
consumer, debt, payments, lag
315
2025-05-25
Monday, 25 August 2025 09:05 AM
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