US Consumer Credit Sees Signs of Stability Amid Responsible Borrowing

US consumer credit is showing signs of stability and measured growth, with disciplined borrowing, moderating balance growth, and declining delinquencies across major lending categories. Credit card and unsecured personal loan originations have increased, but their balance growth has slowed, and late payment trends are improving. Mortgage activity has also seen modest gains, driven by a rebound in refinancing and home equity lending. Delinquencies have ticked higher, but remain near pre-pandemic norms.

American consumers are exhibiting steady and disciplined credit behavior, with signs of stabilization and measured growth across key lending categories. This trend, highlighted in the latest TransUnion Credit Industry Insights Report (CIIR) for Q2 2025, indicates that despite ongoing economic challenges, consumers are managing their credit responsibly.

Credit Card Market

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 [2]. Credit card balances also continued to grow, increasing 4.5% YoY in Q2 2025. However, 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 [2]. Consumer-level delinquencies showed improvement, with 90+ DPD rates falling to 2.17%, marking the second consecutive quarter of YoY declines [2].

Unsecured Personal Loans

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 [2]. Delinquency rates also showed modest improvement, with the 60+ DPD rate declining slightly from 3.38% in Q2 2024 to 3.37% in Q2 2025 [2].

Mortgage Activity

Mortgage activity has also seen modest gains, driven by a rebound in refinancing and home equity lending. While delinquencies have ticked higher, they remain near pre-pandemic norms, indicating a stable market [2].

Conclusion

The US consumer credit market is showing signs of stability and measured growth, with disciplined borrowing, moderating balance growth, and declining delinquencies across major lending categories. This trend suggests that consumers are adapting to today’s economic realities, demonstrating resilience and financial discipline. Investors and financial professionals should closely monitor these trends for potential opportunities and risks.

References

[1] https://www.bloomberg.com/news/articles/2025-08-14/liberty-mutual-rxr-target-1-billion-of-property-credit-deals

[2] https://www.morningstar.com/news/globe-newswire/9512227/transunion-finds-us-consumer-credit-market-showing-signs-of-stability-and-measured-growth-at-mid-point-of-2025