VantageScore CreditGauge™ July 2026: Consumer Credit Stays on Solid Footing as Delinquencies Ease, Utilization Lowers

• Credit Delinquencies Improved Across VantageScore Credit Tiers, Led by Early-Stage Improvement
• Credit Card Utilization Rate Remained Below Year-Ago Levels
• Personal Loan Originations Led Year-Over-Year Consumer Credit Growth

SAN FRANCISCO--(BUSINESS WIRE)--Consumers continued to largely maintain their credit health in July 2026, characterized by easing delinquencies and low credit card utilization, according to the latest edition of CreditGauge™ from VantageScore. The balance-to-loan (BTL) ratio declined to its lowest level of the year, while credit card utilization was below July 2025 levels despite modest growth in average balances. The average VantageScore credit score decreased slightly to 701 but remained within the narrow 700 to 702 range seen over the past year.

“Consumers have continued to enjoy strong momentum in credit health this summer, keeping up with their payments and refraining from using all of their available credit,” said Atif Mirza, EVP and Chief Digital and Insights Officer at VantageScore. “At the same time, personal loans may be an area to keep an eye on as consumers try to stay afloat amid the current high-cost environment.”

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

DELINQUENCIES EASED ACROSS VANTAGESCORE CREDIT TIERS: In July 2026, overall credit delinquencies improved year-over-year across all stages and credit tiers. This improvement was primarily led by early-stage delinquencies, or 30–59 Days Past Due, which declined to 0.89% from 1.05% in July 2025. Mid-stage delinquencies also fell year-over-year, while late-stage delinquencies held steady. Overall, the broad improvement in early- and mid-stage delinquencies, alongside stable late-stage performance, points to resilient consumer credit performance despite ongoing affordability challenges.

CREDIT CARD UTILIZATION REMAINED BELOW YEAR-AGO LEVELS: Average credit card balances increased modestly to $6.45K in July 2026, up 0.9% from a year earlier, while utilization declined 40 basis points to 30.15% from 30.55% in July 2025. This combination suggests that consumers are using a smaller share of their available credit, potentially reflecting greater caution amid elevated living costs and a higher rate environment.

PERSONAL LOAN ORIGINATIONS LED YEAR-OVER-YEAR GROWTH: Personal loan originations rose to 3.49% in July 2026 from 2.98% in July 2025, a 17% relative increase and the strongest year-over-year growth among major non-mortgage credit products. Year-over-year, Millennials and Gen Z posted the largest gains in personal loan originations, at 0.7% each. This growth is consistent with broader industry trends showing continued expansion in unsecured personal lending as consumers navigate elevated living costs and borrowing expenses.

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.