US Consumers Are Mostly Disciplined When It Comes to Credit

Originations across the four major tradelines — credit cards, unsecured personal loans, mortgage loans and auto loans — increased in Q2 2025. At the same time, balance growth was controlled for credit cards and personal loans, while delinquencies were down.

While economic pressures continue to push many consumers to use credit products to cover expenses, our data suggests most are managing debt responsibly — creating lower-risk opportunities for lenders.

For an in-depth analysis, view the webinar on demand or keep reading for key highlights from each industry. 

Credit card: Originations see growth after three stagnant years

Following six consecutive quarters of year-over-year (YoY) declines, credit card originations grew (4.5% YoY to 18.5 million in Q1 2025), marking two consecutive quarters of growth.

While gains were reflected across all risk tiers, super prime originations were up 5% YoY; the third quarter in a row of YoY growth for that segment. Lenders looking to mitigate risks, take note: High-quality consumers are actively seeking credit.

Balances also grew 4.5% YoY in Q2; however, that number is below both the 10-year average and YoY growth rates in 2022 and 2023.

Clues consumers are managing their credit better? Consumer-level delinquency 90+ DPD rates fell (to 2.17%) for the second consecutive quarter, and similar decreases occurred with 30+ DPD and 60+ DPD rates. In addition, credit card charge-off trends showed signs of improvement. Total charge-off balances remained elevated at just under $17 billion but held steady YoY, and the number of accounts charged off in Q2 2025 declined 9% compared to the same period last year.

Q2 2025 credit card trends 

Credit card lending metric (bankcard)	Q2 2025	Q2 2024	Q2 2023	Q2 2022
Number of credit cards (bankcards)	567.5 million	545.1 million	530.6 million	500.0 million
Borrower-level delinquency rate (90+ DPD)	2.17%	2.26%	2.06%	1.57%
Total credit card balances	$1.09 trillion	$1.05 trillion	$963 billion	$820 billion
Average debt per borrower	$6,473	$6,329	$5,947	$5,270
Number of consumers carrying a balance	173.5 million	170.1 million	167.2 million	161.6 million
Prior quarter originations*	18.5 million	17.7 million	19.0 million	18.9 million
Average 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. 

Personal loans: A new record in total balances

Following recent growth trends, both super prime and subprime borrower segments saw an increase in originations in Q1 2025. Overall, originations rose 18% YoY, and super prime and subprime originations grew nearly 20% and 23% YoY, respectively.

That growth pushed total unsecured loan balances to a record $257 billion in Q2 2025, an increase of 4% YoY. Driven primarily by super prime and prime plus consumers, lenders appear to be achieving growth through refined risk assessments and targeted acquisition strategies.

Delinquency rates also dropped slightly, largely led by the subprime segment which saw a nearly 1% YoY decrease. As lenders gain more confidence in this subprime segment — and if they can meet the demand from super prime consumers — they should be well positioned for growth the second half of the year.

Q2 2025 unsecured personal loan trends

Personal loan metric	Q2 2025	Q2 2024	Q2 2023	Q2 2022
Total balances	$257 billion	$246 billion	$232 billion	$192 billion
Number of unsecured personal loans	30.1 million	28.8 million	27.1 million	24.9 million
Number of consumers with unsecured personal loans	24.8 million	23.9 million	22.7 million	21.0 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	$10,344
Average account balance	$8,524	$8,557	$8,558	$7,705
Prior quarter originations*	5.4 million	4.6 million	4.3 million	5.0 million

 *Note: Originations are viewed one quarter in arrears to account for reporting lag.

Click here for additional unsecured personal loan industry metrics.

Mortgage loan: Originations are up — and so are delinquencies

Interest rates and home prices remain elevated, but we still saw growth in the mortgage loan market in Q2. Mortgage originations were up 5.1% YoY in Q1, mostly driven by a rebound in refinance activity.

The home equity market experienced its strongest YoY growth since 2022, rising 12% in Q1 2025, with Gen X and Baby Boomers driving the boon. Rate-and-term refinances were up 44% YoY and cash-out refinances increased 15% over the same period. Bottom line: Established homeowners with significant equity are emerging as a promising market, especially if the Federal Reserve cuts the interest rate in the second half of 2025. That cut, however, could drive down originations.

While credit cards and personal loans saw a drop in delinquencies, first mortgage delinquencies continued to rise in Q2 2025, with the consumer-level 60+ DPD rate increasing to 1.27%. FHA loans made up the largest share of these delinquencies, accounting for 35% of the total.

Q2 2025 mortgage trends

Mortgage lending metric	Q2 2025	Q2 2024	Q2 2023	Q2 2022
Number of mortgage loans	54.6 million	54.1 million	52.5 million	51.8 million
Consumer-level delinquency rate (60+ DPD)	1.27%	1.14%	0.89%	0.77%
Prior quarter originations*	1.0 million	0.9 million	0.9 million	2.2 million
Average loan amounts of new mortgage loans*	$353,080	$334,352	$326,214	$322,631
Average balance per consumer	$265,597	$259,125	$253,838	$246,091
Total 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 loans: Auto delinquencies surpass 2009 levels

Along with the other major credit products, auto loan originations also grew (5.9% YoY to 6.4 million) in Q1. Rising new vehicle inventory levels helped to buoy the market to its strongest Q1 performance since 2022.

Total amounts financed also saw an increase, 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). Ongoing affordability issues coupled with tariffs (which could drive up new cars costs further) are likely contributing to a 6% shift to used cars YoY. In fact, vehicle financing mirrored pre-pandemic trends, with 59% of loans for used vehicles and 41% for new vehicles.

Delinquencies also rose, with consumers 60+ DPD up 1.31% in Q2 2025, up four basis points YoY. The rate now exceeds 2009 levels, but YoY pace has slowed, suggesting delinquencies may be nearing a peak.

Q2 2025 auto loan trends

Auto lending metric	Q2 2025	Q2 2024	Q2 2023	Q2 2022
Total auto loan accounts	80.3 million	80.2 million	80.2 million	80.4 million
Prior quarter originations1	6.4 million	6.0 million	6.0 million	6.7 million
Average monthly payment NEW2	$758	$747	$742	$679
Average monthly payment USED3	$531	$522	$534	$520
Average balance per consumer	$24,602	$24,199	$23,501	$22,178
Average amount financed on new auto loans4	$42,549	$41,519	$41,249	$41,083
Average amount financed on used auto loans5	$26,583	$25,858	$26,986	$28,487
Consumer-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.

^2,3,4,5 Data 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.

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