VantageScore CreditGauge™ May 2026: Lending Activity Picks Up as Borrowers Adapt to Higher Rates

• Consumer Credit Conditions Improve Across VantageScore Tiers as Delinquency Rates Fall
• Unsecured Originations Grow Year-Over-Year, Led by Personal Loans

SAN FRANCISCO--(BUSINESS WIRE)--Consumer credit performance remained healthy in May 2026, according to the latest edition of CreditGauge™ from VantageScore. Delinquency rates across all delinquency stages remained below pre-pandemic levels, suggesting that most borrowers have successfully adjusted to a prolonged, higher-rate environment despite ongoing affordability challenges. Meanwhile, the average VantageScore 4.0 credit score held steady at 701, reinforcing the overall stability of consumer credit health. Together, these indicators point to a resilient consumer credit landscape, even as elevated interest rates and cost-of-living pressures persist.

“While consumer sentiment has softened in recent months, the underlying credit data tells a more stable story,” said Atif Mirza, EVP and Chief Digital and Insights Officer at VantageScore. “Delinquency rates remain below pre-pandemic levels across all delinquency stages, reflecting the continued resilience of consumers despite elevated interest rates and rising household expenses. Coupled with a rebound in new credit originations, these credit trends point to a credit market that remains healthy and accessible.”

Watch CreditGauge LIVE for additional key insights from the May 2026 edition of CreditGauge that include:

CONSUMER CREDIT CONDITIONS IMPROVE ACROSS VANTAGESCORE TIERS AS DELINQUENCY RATES FALL: Year-over-year, early-stage, or 30–59 Days Past Due (DPD), delinquencies improved across all VantageScore credit tiers in May 2026. Delinquency rates declined from 0.20% to 0.16% among Prime borrowers, from 1.87% to 1.58% among Nearprime borrowers and from 11.0% to 9.8% among Subprime borrowers, while Superprime delinquency rates remained extremely low at 0.0020%, down from 0.0040% a year earlier. These trends reflect broad-based stabilization in consumer credit performance despite higher borrowing costs, student loan repayment obligations and persistent affordability pressures.

UNSECURED ORIGINATIONS GROW, LED BY PERSONAL LOANS: Year-over-year in May 2026, originations remained above May 2025 levels across most products, led by unsecured lending. Personal loan originations reached a nine-month high, rising from 2.88% to 3.41% since October 2025 and signaling an area to watch in the months ahead.

Follow VantageScore on LinkedIn and YouTube to watch CreditGauge LIVE, a monthly video series featuring our latest insights on consumer credit data and analysis.

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.

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 nine of the top 10 U.S. banks, use VantageScore credit scores and digital tools to provide consumer credit products or generate greater insights into consumer behavior. The VantageScore 4.0 credit scoring model scores 33 million more people than traditional models. With the FHFA allowing the immediate 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.

VantageScore is an independent joint venture company owned by Equifax, Experian and TransUnion.