TransUnion Finds U.S. Consumer Credit Market Showing Signs of Stability and Measured Growth at Mid-Point of 2025

CHICAGO, Aug. 14, 2025 (GLOBE NEWSWIRE) -- American consumers are exhibiting steady and disciplined credit behavior, with signs of stabilization and measured growth across key lending categories—even as they continue to navigate a complex economic landscape. These insights come from TransUnion’s (NYSE: TRU) newly released Q2 2025 Credit Industry Insights Report (CIIR), which highlights steady and measured credit usage. While credit card and unsecured personal loan originations have risen, their balance growth remains controlled, and delinquencies have continued to decline. Following a sharp year-over-year (YoY) decline in Q1 2024, bankcard originations rebounded in Q1 2025, posting a 4.5% increase (due to reporting lag, originations are reported one quarter in arrears). Outstanding balances in Q2 2025 rose by a similar 4.5% YoY—significantly lower than the YoY balance growth rates observed over the prior three years. Meanwhile, consumer-level 90+ days past due delinquencies (DPD) declined by 9 basis points YoY, marking a subtle but meaningful improvement after consistent yearly increases in delinquencies since 2021. This combination of tempered balance growth and reduced delinquency rates suggests a stabilizing—if not gradually improving—consumer credit environment, even as many households continue to navigate economic challenges. Bankcard Market Saw Positive Momentum Across Core Metrics TimeframeOriginations*Balances90+ DPD Consumer-Level DelinquencyQ2 202319.0 million$963 million2.06%Q2 202417.7 million$1.05 Trillion2.26%Q2 202518.5 million$1.09 Trillion2.17%2024-2025 Change+4.5% YoY+4.5% YoY-9 basis points *Originations are from Q1 in each respective year Source: TransUnion U.S. Consumer Credit Database “We’re increasingly seeing the credit card lending market return to pre-pandemic patterns,” said Jason Laky, executive vice president and head of financial services at TransUnion. “Originations experienced their most significant year-over-year growth since 2022, while balance growth normalized to more historical levels. At the same time, delinquency rates declined, signaling that despite ongoing economic uncertainty, consumers continue to demonstrate resilience.” In addition, credit card charge-off trends have shown signs of improvement. While total charge-off balances remained elevated at just under $17 billion, they held steady YoY. Notably, the number of accounts charged off in Q2 2025 declined to 4.7 million—a 9% decrease compared to the same period last year. Combined with the ongoing decline in delinquencies, these trends point to a stabilizing credit card market and suggest that consumers are making progress in strengthening their financial health. Alongside the encouraging trends in the credit card market, the unsecured personal loan sector is also showing positive momentum. In Q1 2025, unsecured personal loan originations rose sharply—up 18% YoY to a total of 5.4 million accounts. At the same time, delinquency rates remained stable, with a slight YoY decline in 60+ DPD delinquency to 3.37%. This marks the third consecutive quarter of improvement, suggesting that consumers are not only seeking credit, but are also managing it more responsibly—even amid ongoing economic uncertainty. “Consumers appear to be increasingly successful at adapting to today’s economic realities,” said Michele Raneri, vice president and head of U.S. research and consulting at TransUnion. “While many are still relying on credit to manage everyday expenses, the data suggests they’re doing so in a controlled manner. The continued decline in delinquencies and charge-offs reflects a level of financial discipline that speaks to consumers’ flexibility and determination to stay on track.” To learn more about the latest consumer credit trends, register for the Q2 2025 Quarterly Credit Industry Insights Report webinar. Read on for more specific insights about credit cards, personal loans, auto loans and mortgages. Bankcard sees improvements as originations rise, delinquencies fall Q2 2025 CIIR Credit Card Summary For the first time since 2022, credit card originations saw annual growth, rising 4.5% YoY to 18.5 million in Q1 2025. This increase was driven by gains across the credit risk spectrum, with super prime borrower originations up 5.0% YoY and subprime originations rising 15.2% over the same period. This marked the third consecutive quarter of YoY growth in the super prime segment, indicating sustained demand for new cards among high-credit-quality consumers and continued opportunities for lenders to expand.Credit card balances also continued to grow, increasing 4.5% YoY in Q2 2025. Nevertheless, this growth is below the 10-year average Q2 balance growth of 5.8% and significantly lower than the YoY growth rates seen in Q2 2022 and Q2 2023, which were 16.0% and 17.4%, respectively.Consumer-level delinquencies showed improvement, with 90+ DPD rates falling to 2.17%, marking the second consecutive quarter of YoY declines. Similar downward trends were observed in 30+ DPD and 60+ DPD rates, reflecting both improved consumer credit health and the positive impact of tighter underwriting standards by lenders. Instant Analysis “In Q2 2025, the bankcard market showed a healthy balance of growth, stability, and recovery. Following six consecutive quarters of year-over-year declines, originations have now grown for two straight quarters—signaling renewed momentum. Seasonal growth is expected to continue into the next quarter. Balance growth has moderated, aligning more closely with pre-2020 trends and suggesting a stabilizing environment. This sense of stability is further supported by a year-over-year decline in serious delinquencies. Looking ahead, delinquency rates are expected to remain relatively flat, with only a marginal increase expected if any.” - Paul Siegfried, senior vice president, credit card business leader at TransUnion Q2 2025 Credit Card Trends Credit Card Lending Metric (Bankcard)Q2 2025Q2 2024Q2 2023Q2 2022Number of Credit Cards (Bankcards)567.5 million545.1 million530.6 million500.0 millionTotal Credit Card Balances $1.09 Trillion$1.05 Trillion$963 billion$820 billionAverage Debt Per Borrower$6,473$6,329$5,947$5,270Number of Consumers Carrying a Balance173.5 million170.1 million167.2 million161.6 millionPrior Quarter Originations*18.5 million17.7 million19.0 million18.9 millionAverage New Account Credit Lines*$5,923$6,204$5,972$5,035 *Note: Originations are viewed one quarter in arrears to account for reporting lag.Click here for a Q2 2025 credit card industry infographic. For more credit card industry information, click here for episodes of Extra Credit: A Card and Banking Podcast by TransUnion. Unsecured personal loans see originations growth driven by both ends of the credit spectrum Q2 2025 CIIR Unsecured Personal Loan Summary The unsecured personal loan market continued its recent growth trend in Q1 2025, with both super prime and subprime borrower segments contributing to the increase in originations. Overall, originations rose 18% YoY for the quarter. Super prime originations grew nearly 20% YoY, while subprime saw even stronger growth at almost 23%.This sustained growth in originations led to a new record in total unsecured loan balances, which reached $257 billion in Q2 2025, an increase of 4% YoY. The primary drivers of this growth were super prime and prime plus.Delinquency rates also showed modest improvement. The 60+ DPD rate declined slightly from 3.38% in Q2 2024 to 3.37% in Q2 2025, marking the third consecutive quarter of declining delinquency YoY. This improvement was led by the subprime segment, where the consumer-level delinquency rate dropped from 14.4% to 13.6% YoY. Instant Analysis “Lenders are driving growth through refined risk assessment and targeted acquisition strategies, despite ongoing uncertainty from trade policies and federal student loan repayment pressures. Improving delinquency rates among subprime borrowers signals effective risk management and broader economic stability, reinforcing lender confidence in this segment. Meanwhile, rising demand from super prime consumers—across a wider range of lenders—highlights both the utility of unsecured personal loans and a strategic shift toward this risk segment as the market matures. If these trends persist, the unsecured personal loan market is well-positioned to maintain its positive growth trajectory.” - Josh Turnbull, senior vice president, consumer lending business leader at TransUnion Q2 2025 Unsecured Personal Loan Trends Personal Loan MetricQ2 2025Q2 2024Q2 2023Q2 2022Total Balances$257 billion$246 billion$232 billion$192 billionNumber of Unsecured Personal Loans30.1 million28.8 million27.1 million24.9 millionNumber of Consumers with Unsecured Personal Loans24.8 million23.9 million22.7 million21.0 million Borrower-Level Delinquency Rate (60+ DPD)3.37%3.38%3.62%3.37%Average Debt Per Borrower$11,676$11,687$11,548$10,344Average Account Balance$8,524$8,557$8,558$7,705Prior Quarter Originations*5.4 million4.6 million4.3 million5.0 million *Note: Originations are viewed one quarter in arrears to account for reporting lag.Click here for additional unsecured personal loan industry metrics. Home equity originations rebound continues as mortgage delinquencies edge higher Q2 2025 CIIR Mortgage Loan Summary Mortgage originations edged up 5.1% year-over-year in Q1 2025, despite ongoing pressure from elevated interest rates and persistently high home prices. This growth was mainly driven by a rebound in refinance activity, with rate-and-term refinances up 44% YoY and cash-out refinances increasing 15% over the same period.The home equity market also experienced its strongest YoY growth since 2022, rising 12% in Q1 2025. Generation X and Baby Boomers accounted for the majority of home equity originations, highlighting strong demand among established homeowners with significant equity to leverage.First mortgage delinquencies continued to rise in Q2 2025, with the consumer-level 60+ DPD rate increasing to 1.27%, nearing pre-pandemic levels. FHA loans made up the largest share of these delinquencies, accounting for 35% of the total. One potential silver lining lies in the performance of the Q2 2024 vintage of new mortgage originations, which is outperforming the Q2 2023 cohort—though it still trails vintages from earlier years. Instant Analysis “Amid ongoing uncertainty surrounding tariffs and broader economic policy, the Federal Reserve has maintained a steady interest rate stance in 2025. Some forecasts anticipate a potential rate cut in the second half of 2025, which would likely lead to a decline in mortgage rates. If paired with housing inventory returning to pre-pandemic levels, this could stimulate increased mortgage origination activity.” - Satyan Merchant, senior vice president, automotive and mortgage business leader at TransUnion Q2 2025 Mortgage Trends Mortgage Lending MetricQ2 2025Q2 2024Q2 2023Q2 2022Number of Mortgage Loans54.6 million54.1 million52.5 million51.8 millionConsumer-Level Delinquency Rate (60+ DPD)1.27%1.14%0.89%0.77%Prior Quarter Originations*1.0 million0.9 million0.9 million2.2 millionAverage Loan Amountsof New Mortgage Loans*$353,080$334,352$326,214$322,631Average Balance per Consumer$265,597 $259,125$253,838$246,091Total Balances of All Mortgage Loans$12.6 trillion$12.3 trillion$11.7 trillion$11.2 trillion * Originations are viewed one quarter in arrears to account for reporting lag.Click here for a Q2 2025 mortgage industry infographic. Click here for additional mortgage industry metrics. Auto delinquencies tick past 2009 levels as tariffs push vehicle prices higher Q2 2025 CIIR Auto Loan Summary Auto originations grew 5.9% YoY to 6.4 million in Q1 2025, marking the strongest Q1 performance since 2022, supported in part by rising new vehicle inventory levels. This growth occurred despite increasing vehicle prices, which may have been driven in part by anticipation of tariffs.Total amounts financed rose in Q2 2025—up 2.5% YoY for new vehicles (to an average of $42,459) and 2.8% YoY for used vehicles (to an average of $26,583). Q2 2025 vehicle financing mirrored pre-pandemic trends, with 59% of loans for used vehicles and 41% for new vehicles. This represents a 6 percentage point shift toward used vehicles compared to Q2 2024, likely driven by affordability challenges in the new vehicle market.The percentage of consumers 60+ DPD rose to 1.31% in Q2 2025, up four basis points YoY. While this rate now exceeds 2009 levels, the pace of YoY growth has slowed significantly, suggesting that delinquencies may be nearing a peak. New vehicle account 2024 vintages showed elevated delinquency levels compared to 2019, particularly among prime and below-prime tiers. Used vehicle 2024 vintages performed better than those from 2022 and 2023, though they still lag behind the benchmarks set in 2018 and 2019. Instant Analysis “We have observed a modest upward trend in pricing. This development may contribute to growing affordability challenges for a broad segment of consumers. As a result, we could see a shift in market composition, with a higher concentration of super-prime consumers, who tend to be more resilient and adaptable to price fluctuations. Meanwhile, point-in-time delinquency rates—specifically accounts that are 60 or more days past due—continue to rise. Nevertheless, the pace of this growth is beginning to decelerate. We are closely monitoring this trend to determine whether it will stabilize in the near term." - Satyan Merchant, senior vice president, automotive and mortgage business leader at TransUnion Q2 2025 Auto Loan Trends Auto Lending MetricQ2 2025Q2 2024Q2 2023Q2 2022Total Auto Loan Accounts80.3 million80.2 million80.2 million80.4 millionPrior Quarter Originations16.4 million6.0 million6.0 million6.7 millionAverage Monthly Payment NEW2$758$747$742$679Average Monthly Payment USED2$531$522$534$520Average Balance per Consumer$24,602$24,199$23,501$22,178Average Amount Financed on New Auto Loans2$42,549$41,519$41,249$41,083Average Amount Financed on Used Auto Loans2$26,583$25,858$26,986$28,487Consumer-Level Delinquency Rate (60+ DPD)1.49%1.44%1.34%1.07% 1Note: Originations are viewed one quarter in arrears to account for reporting lag.2Data from S&P Global MobilityAutoCreditInsight, Q2 2025 data only for months of April & May.Click here for additional auto industry metrics. Click here for a Q2 2025 auto industry infographic. For more information about the report, please register for the Q2 2025 Credit Industry Insight Report webinar. About TransUnion (NYSE: TRU) TransUnion is a global information and insights company with over 13,000 associates operating in more than 30 countries. We make trust possible by ensuring each person is reliably represented in the marketplace. We do this with a Tru™ picture of each person: an actionable view of consumers, stewarded with care. Through our acquisitions and technology investments we have developed innovative solutions that extend beyond our strong foundation in core credit into areas such as marketing, fraud, risk and advanced analytics. As a result, consumers and businesses can transact with confidence and achieve great things. We call this Information for Good® — and it leads to economic opportunity, great experiences and personal empowerment for millions of people around the world. http://www.transunion.com/business ContactDave Blumberg TransUnion E-maildblumberg@transunion.com Telephone312-972-6646

TransUnion Finds U.S. Consumer Credit Market Showing Signs of Stability and Measured Growth at Mid-Point of 2025

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