Global reactions to the new U.S. tariffs pushed Auto Loans to their highest levels since January 2020, according to the latest edition of CreditGauge™ from VantageScore. Auto Loan originations rose among all generations compared to March 2025, with Gen Z showing the largest month-over-month gain of 0.5%.
“Economic uncertainty was a driver of consumer decisions across all age groups in April,” said Susan Fahy, Executive Vice President and Chief Digital Officer at VantageScore. “Buyers appear to have accelerated their car purchases in anticipation of higher sticker prices due to the recently implemented tariffs.”
The average VantageScore 4.0 remained steady at 702 in April 2025, edging down by just 0.1 points from the previous month. Meanwhile, the share of VantageScore Superprime (781–850) consumers rose from 30.3% in April 2023 to 31.3% in April 2025, signaling a continued gradual improvement in overall credit health.
Key insights for the April 2025 edition of CreditGauge include:
AUTO LOANS, PERSONAL LOANS LEAD YEAR-OVER-YEAR CREDIT REBOUND: Credit originations increased across all products compared to the prior year, with the highest growth among Auto Loans and Personal Loans. The uptick in Auto Loans likely reflects accelerated vehicle purchases ahead of expected economic volatility, along with seasonal factors like tax refund payments.
EARLY-STAGE DELINQUENCIES IMPROVE: Overall credit delinquencies declined across all Days Past Due (DPD) categories on a month-over-month basis, indicating a short-term improvement in repayment activity. Year-over-year, they remain elevated for both mid- (60-89 DPD) and late-stage (90-119 DPD) delinquencies, the latter likely due to the impact of resumed student loan delinquency reporting on consumer credit files.
OVERALL BORROWING LEVELS PLATEAU: Average credit balances remain essentially flat month-over-month, rising just $14 (+0.01%) compared to March 2025. That said, the average balance-to-loan ratio has trended downward since January 2025, decreasing to 50.81% (-0.64%). Consumers appear to be more discerning and focusing their spending on big-ticket items. Still, average balances sustained a five-year high for the fourth consecutive month, rising by $1,215 (+1.2%).
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.
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