Core Insights - The TransUnion Q3 2025 Credit Industry Insights Report reveals a significant divide in consumer credit risk among U.S. consumers, with some showing increased financial resilience while others face growing challenges [1] Consumer Credit Risk Trends - The percentage of individuals classified in the lowest risk super prime credit risk tier has increased from 37.1% in Q3 2019 to 40.9% in Q3 2025 [1] - The total number of super prime borrowers has risen by approximately 16 million since 2019, indicating continued financial stability among top-tier consumers [1] - The subprime segment has returned to pre-pandemic levels after declines in 2020 and 2021, as many consumers paid down debt and reduced delinquencies during the pandemic [1] Lending Market Dynamics - Year-over-year growth in new account originations and total balances has been strongest in the super prime and subprime tiers, significantly outpacing other segments [1] - The divergence in credit behavior highlights evolving consumer dynamics and the need for tailored risk strategies across the credit spectrum [1] Strategic Recommendations - Lenders are advised to leverage advanced tools, such as access to trended data, to better assess evolving risk profiles as consumer behavior shifts toward extremes in the credit risk spectrum [1]

Core Insights - American consumers are showing steady and disciplined credit behavior, with signs of stabilization and measured growth across key lending categories despite a complex economic landscape [1][3] - The Q2 2025 Credit Industry Insights Report from TransUnion indicates a rebound in credit card and unsecured personal loan originations, with controlled balance growth and declining delinquencies [1][2] Credit Card Market - Bankcard originations increased by 4.5% YoY in Q1 2025, with outstanding balances also rising by 4.5% YoY in Q2 2025, which is lower than the growth rates observed in the previous three years [2][16] - The consumer-level 90+ days past due (DPD) delinquency rate decreased by 9 basis points YoY to 2.17%, indicating improved credit health [2][16] - Total charge-off balances remained steady at just under $17 billion, with the number of accounts charged off declining by 9% YoY to 4.7 million [6][8] Unsecured Personal Loans - Unsecured personal loan originations rose sharply by 18% YoY in Q1 2025, totaling 5.4 million accounts, with stable delinquency rates [7][17] - Total unsecured loan balances reached $257 billion in Q2 2025, marking a 4% YoY increase, driven primarily by super prime and prime plus segments [17][20] - The 60+ DPD delinquency rate slightly declined to 3.37%, reflecting improved management of credit by consumers [18][20] Mortgage Market - Mortgage originations increased by 5.1% YoY in Q1 2025, primarily due to a rebound in refinance activity, with rate-and-term refinances up 44% YoY [25][27] - The consumer-level 60+ DPD delinquency rate rose to 1.27%, with FHA loans accounting for 35% of these delinquencies [25][27] - Total balances of all mortgage loans reached $12.6 trillion, up from $12.3 trillion in Q2 2024 [27] Auto Loan Market - Auto loan originations grew by 5.9% YoY to 6.4 million in Q1 2025, supported by rising new vehicle inventory levels [33][31] - The percentage of consumers 60+ DPD rose to 1.31%, exceeding 2009 levels, although the pace of growth has begun to decelerate [33][34] - Average monthly payments for new auto loans increased to $758, while used auto loans averaged $531 [31][33]