VantageScore Says U.S. Consumer Credit Stayed Healthy in June

VantageScore’s June CreditGauge found U.S. consumer credit remained fundamentally healthy, with the average VantageScore 4.0 rising to 702 and delinquency pressure still largely contained. Early-stage payment stress ticked up in some areas, but consumers kept overall leverage in check and severe delinquencies stayed flat.

Why it matters: - U.S. consumer credit held up in June 2026 despite affordability pressures, signaling households are still managing debt responsibly. - The data points to a split market: some borrowers are under strain, but broader credit performance remains stable. - That balance matters for lenders, mortgage markets and consumer spending heading into the second half of 2026.

What happened: - VantageScore said the average VantageScore 4.0 credit score rose one point in June to 702. - The score increase reversed a modest late-2025 dip and marked the highest level in the past 12 months. - Credit card delinquency rates improved across all three delinquency stages compared with June 2025. - Overall credit utilization fell from both the prior month and a year earlier. - The balance-to-loan ratio dropped to 49.61%, below the pre-pandemic level of 54.1%.

The details: - Early-stage delinquencies, defined as 30-59 days past due, rose to 0.98%. - That was up 9 basis points from June 2025 and still below the pre-pandemic benchmark of 1.15%. - The increase in early-stage delinquency was broad-based across every VantageScore credit tier, including Subprime and Nearprime borrowers. - Mortgage lending showed the clearest deterioration, with both early- and late-stage delinquencies rising year over year. - Mid-stage mortgage delinquencies improved modestly. - Late-stage delinquencies, or 90-119 days past due, held at 0.21%, matching June 2025 and staying below pre-pandemic norms. - Average mortgage, auto loan and credit card balances rose modestly, consistent with higher home and vehicle prices. - Personal loan balances edged down year over year. - The personal loan balance-to-loan ratio rose slightly, suggesting some continued use of installment credit to manage household budgets. - Credit card originations posted the strongest gains of any product in June, rising month over month and year over year. - Mortgage and auto loan originations were roughly flat.

Between the lines: - The data suggests consumers are being selective about new borrowing and deliberate about revolving credit use. - Early payment stress is showing up, but it has not yet turned into widespread severe delinquency. - A resilient labor market and relatively healthy household balance sheets appear to be supporting the broader credit picture. - The gradual move of some borrowers into lower VantageScore tiers suggests affordability pressure is still affecting part of the market.

What's next: - VantageScore expects CreditGauge to continue tracking whether early-stage stress spreads or stays contained. - Lenders will be watching whether mortgage delinquencies and lower credit-tier migration deepen in the coming months. - The June data suggests the broader consumer enters the second half of 2026 in solid shape, even if some households remain under pressure.

The bottom line: - Consumer credit remains healthy overall, but June showed the first signs of strain at the margins. - Severe delinquency stayed contained, while disciplined payment behavior and lower leverage kept the market steady.