Story perspectives

Credit Scores Soar; Lower-Income Borrowers Struggle Amid K-Shaped Recovery

12/12/2025

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Summary

Story summary

The average VantageScore is 701 as of October 2025, indicating overall strong consumer credit.
A K-shaped divide is emerging, with lower-income borrowers facing rising delinquencies and higher-income households gaining stability.
Silvio Tavares, CEO of VantageScore, notes late payments declined for high- and middle-income consumers but rose for lower-income borrowers.
TransUnion's Michele Raneri predicts a slight rise in delinquency rates for credit cards and loans in 2026 as spending normalizes post-pandemic.

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Story summary

The average VantageScore is 701 as of October 2025, indicating overall strong consumer credit.
A K-shaped divide is emerging, with lower-income borrowers facing rising delinquencies and higher-income households gaining stability.
Silvio Tavares, CEO of VantageScore, notes late payments declined for high- and middle-income consumers but rose for lower-income borrowers.
TransUnion's Michele Raneri predicts a slight rise in delinquency rates for credit cards and loans in 2026 as spending normalizes post-pandemic.