VantageScore says consumer credit stayed resilient in September as leverage hit a 12-month low

VantageScore’s September CreditGauge report found the average credit score held at 701 while consumer leverage fell to its lowest level in a year. Early-stage delinquencies ticked up, but serious payment problems stayed contained.

Why it matters: - Consumer credit appears stable despite ongoing economic pressure. - Lower leverage suggests households are managing debt more carefully, which can help limit broader credit stress. - The only clear warning sign is a rise in early-stage delinquencies, which could matter if the trend continues.

What happened: - VantageScore’s September 2026 CreditGauge report said the average VantageScore 4.0 credit score held at 701. - Overall consumer leverage fell to a 12-month low. - The average consumer balance stayed near $107.5K, essentially unchanged from August and $990 higher than a year earlier. - The balance-to-loan ratio slipped from 49.60% in August to 49.50% in September.

The details: - The September balance-to-loan ratio was 1.29% below the 50.79% recorded in September 2025. - VantageScore said the flat balance trend and lower ratio suggest consumers are paying down debt relative to what they originally borrowed. - Late-stage delinquencies, or accounts 90 to 119 days past due, held at 0.23%. - That late-stage delinquency rate was 1 basis point above September 2025. - Early-stage delinquencies, or accounts 30 to 59 days past due, rose to 1.15% from August. - Early-stage delinquencies were 2 basis points above a year earlier. - Credit card utilization fell to its lowest level since before the pandemic. - Over the past two years, the Prime share of borrowers eased from 33.3% to 32.5%. - Nearprime rose from 17.4% to 18.0% over the same period. - Subprime increased from 18.4% to 18.7%.

Between the lines: - The report points to a consumer credit market that is holding up rather than weakening sharply. - Stable year-over-year delinquency rates suggest borrowers are still keeping up with payments. - The small drift from Prime into Nearprime and Subprime suggests some gradual pressure, but not a broad deterioration. - The month-over-month rise in early delinquencies is the main metric that deserves monitoring.

What's next: - VantageScore said the next few months will show whether the early-stage delinquency increase is temporary or the start of a broader trend. - Investors, lenders and consumer-credit watchers will likely keep tracking leverage, utilization and delinquency shifts for signs of stress. - VantageScore’s CreditGauge tools on VantageScore.com allow stakeholders to compare current credit metrics with levels going back to January 2020.

The bottom line: - Consumer credit remains resilient, but the modest rise in early delinquencies is the key signal to watch.