2 Consumer Loan Stocks Showing Promise Despite Industry Headwinds

The Zacks Consumer Loans industry faces growing pressure from prolonged high rates, which are straining borrowers' repayment capacity. So, industry players are increasing reserves to guard against rising defaults, leading to deteriorating asset quality.While steady rates and easing inflation have supported modest loan demand, tariff-related uncertainties and declining consumer confidence remain headwinds. Although relaxed lending standards and improved credit scores have expanded the borrower pool, overall ...