Catenaa, Monday, August 25, 2025- US consumers with prime credit scores are starting to fall behind in debt repayments, a report said on Monday, in a sign that Americans’ financial health may be deteriorating more broadly.
Credit scoring company VantageScoreLate said that 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.
Chief Economist at VantageScore, Rikard Bandebo, said that in relative terms, the sharpest increase in delinquencies was seen in superprime and prime customers who are typically considered the most financially secure.
“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,” he said.
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 the 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.
