TransUnion’s Q2 2025 Credit Industry Insights Report (CIIR) reveals a U.S. consumer credit market demonstrating resilience and disciplined behavior amid a complex economic landscape.
Released on August 14, 2025, the research report highlights steady credit usage, controlled balance growth, and declining delinquency rates across key lending categories, signaling a stabilizing financial environment for American consumers.
Despite ongoing challenges such as elevated interest rates and persistent inflation, the data suggests consumers are adapting effectively, managing credit responsibly while navigating economic uncertainties.
The credit card sector exhibited notable momentum in Q2 2025, with bankcard originations rebounding after a sharp year-over-year (YoY) decline in Q1 2024.
Originations in Q1 2025 rose by 4.5% YoY to 18.5 million, marking the most significant annual growth since 2022.
This increase was driven by demand across the credit risk spectrum, with super prime borrowers seeing a 5.0% YoY rise and subprime originations surging by 15.2%.
Total credit card balances grew by 4.5% YoY to $1.09 trillion, a more moderate pace compared to the 16.0% and 17.4% growth rates seen in Q2 2022 and Q2 2023, respectively.
This aligns more closely with the 10-year average Q2 balance growth of 5.8%, suggesting a return to historical norms.
Delinquency rates also improved, with consumer-level 90+ days past due (DPD) delinquencies dropping to 2.17%, a 9-basis-point YoY decline.
This marks the second consecutive quarter of YoY delinquency reductions, reflecting improved consumer credit health and tighter underwriting standards by lenders.
Charge-off trends further support this stability, with the number of accounts charged off decreasing by 9% YoY to 4.7 million, despite total charge-off balances remaining steady at just under $17 billion.
Jason Laky, executive vice president and head of financial services at TransUnion:
“We’re increasingly seeing the credit card lending market return to pre-pandemic patterns. Consumers continue to demonstrate resilience despite ongoing economic uncertainty.”
The unsecured personal loan market also showed robust growth in Q2 2025. Originations in Q1 2025 surged by 18% YoY to 5.4 million accounts, driven by both super prime (up nearly 20% YoY) and subprime (up nearly 23% YoY) borrower segments.
Total unsecured loan balances reached a record $257 billion, a 4% YoY increase, primarily fueled by super prime and prime plus borrowers.
Delinquency rates remained stable, with the 60+ DPD rate slightly declining from 3.38% in Q2 2024 to 3.37% in Q2 2025, marking the third consecutive quarter of YoY improvement.
Notably, subprime delinquency rates dropped from 14.4% to 13.6% YoY, signaling effective risk management by lenders.
Josh Turnbull, senior vice president and consumer lending business leader at TransUnion:
“Lenders are driving growth through refined risk assessment and targeted acquisition strategies. The improving delinquency rates among subprime borrowers reflect broader economic stability and reinforce lender confidence.”
This disciplined credit management suggests consumers are leveraging personal loans to address financial needs while maintaining fiscal responsibility.
The CIIR underscores that consumers are navigating a challenging economic environment marked by high interest rates and inflation.
However, the data reflects a level of financial discipline, with controlled balance growth and declining delinquencies indicating adaptability.
Michele Raneri, vice president and head of U.S. research and consulting at TransUnion, noted:
“Consumers appear to be increasingly successful at adapting to today’s economic realities. The continued decline in delinquencies and charge-offs reflects their flexibility and determination to stay on track.”
The Q2 2025 CIIR suggests a cautiously optimistic outlook for the U.S. consumer credit market.
With credit card and personal loan originations rising, balance growth moderating, and delinquencies declining, consumers are demonstrating resilience.
As economic uncertainties persist, the disciplined credit behavior highlighted in the report positions consumers and lenders for continued stability.
