In Q3 2025, signs point to a growing financial divide between the types of consumers who are taking out lines of credit, according to the newly released Q3 2025 Credit Industry Insights Report (CIIR).
More individuals are either moving toward the super prime or subprime segments. Individuals in the lowest risk tier (super prime) grew 3.8% from Q3 2019 to Q3 2025, reflecting continued financial stability among top-tier consumers. Additionally, the subprime segment has finally returned to pre-pandemic levels. At the same time, all other segments saw declines in shares.
This shift is most notable across the credit card and auto lending markets. Year-over-year growth in new account originations and total balances was strongest for these two tiers, far outpacing all others.
| YoY% change by risk tier | Credit card | Auto | ||
| Originations* | Total balances | Originations* | Total balances | |
| Super prime | 9.4% | 7.6% | 8.4% | 4.1% |
| Prime plus | 5.1% | 3.5% | 2.6% | -2.5% |
| Prime | 0.9% | 0.9% | 0.4% | -2.7% |
| Near prime | 5.4% | 4.7% | 4.5% | 3.5% |
| Subprime | 21.1% | 6.4% | 8.8% | 6.5% |
*Note: Originations are viewed one quarter in arrears to account for reporting lag.
Source: TransUnion U.S. Consumer Credit Database
What does this mean for lenders? They’ll need a finely-tuned marketing strategy that enables them to reach consumers in these two tiers — without inviting too much risk from the subprime segments.
For an in-depth analysis on other trends impacting the industry, read the full report or register for the upcoming webinar. Here are just a few of the highlights you’ll want to keep in mind as you plan for 2026.
Credit card: Super prime and subprime segments drive expansion
For the third consecutive quarter, credit card originations increased in Q2, rising 9% YoY to 20.5 million. This marks the largest YoY increase in two years, driven by consistent growth in both super prime and subprime segments. Total new account credit lines increased by 7% YoY to $112 billion. However, we found credit lines were lower across all risk tiers, led by subprime which saw new lines 5.0% lower YoY.
Consumer-level delinquencies improved for 30+ DPD and 60+ DPD, and notably, 90+ DPD fell seven basis points YoY.
The market is picking up speed; however, lenders are remaining cautious with tighter credit limits across all risk tiers. Healthy consumer credit behavior, along with better-quality originations driven by adjustments in underwriting standards, is driving the expansion.
Q3 2025 credit card trends
| Credit card lending metric (bankcard) | Q3 2025 | Q3 2024 | Q3 2023 | Q3 2022 |
| Number of credit cards (bankcards) | 574.4 million | 554.5 million | 537.9 million | 510.9 million |
| Borrower-level delinquency rate (90+ DPD) | 2.37% | 2.43% | 2.34% | 1.94% |
| Total credit card balances | $1.11 Trillion | $1.06 Trillion | $995 billion | $866 billion |
| Average debt per borrower | $6,523 | $6,380 | $6,088 | $5,474 |
| Number of consumers carrying a balance | 174.8 million | 171.4 million | 168.6 million | 163.9 million |
| Prior quarter originations* | 20.4 million | 18.8 million | 20.5 million | 21.3 million |
| Average new account credit lines* | $5,797 | $5,891 | $5,777 | $5,021 |
*Note: Originations are viewed one quarter in arrears to account for reporting lag.
Click here for a Q3 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: Robust performance as originations climb 26%
In Q2, unsecured personal loan originations reached 6.9 million, a 26% YoY increase. Balances also continued to climb, hitting a record $269 billion in Q3, an 8% YoY increase and the largest since Q1 2024. Originations were strongest among riskier tiers, with subprime originations up 35% and near prime up 26%. All risk tiers saw balance growth.
FinTechs are behind much of the growth, accounting for more than 40% of new loans. They also now hold more than half of total balances followed by banks at 21%.
Delinquency rates remained stable YoY in Q3, with the 60+ DPD rate inching up to 3.52% from 3.50% in Q3 2024. Of note was the subprime segment where delinquency declined 0.5% YoY, while other risk tiers held steady. This modest shift suggests some early signs of improvement in credit performance among higher-risk borrowers.
This trend will be one to watch in the coming months as economic uncertainties and affordability issues remain challenges for consumers.
Q3 2025 unsecured personal loan trends
| Personal loan metric | Q3 2025 | Q3 2024 | Q3 2023 | Q3 2022 |
| Total balances | $269 billion | $249 billion | $241 billion | $210 billion |
| Number of unsecured personal loans | 31.8 million | 29.3 million | 27.8 million | 26.4 million |
| Number of consumers with unsecured personal loans | 25.9 million | 24.2 million | 23.2 million | 22.0 million |
| Borrower-level delinquency rate (60+ DPD) | 3.52% | 3.50% | 3.75% | 3.89% |
| Average debt per borrower | $11,724 | $11,652 | $11,692 | $10,749 |
| Average account balance | $8,457 | $8,514 | $8,644 | $7,946 |
| Prior quarter originations* | 6.9 million | 5.4 million | 5.1 million | 6.0 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: Gen Z gains driving growth in home equity originations
Overall, mortgage activity appears to be rebounding due to mortgage rate decreases. Mortgage originations ticked up 8.8% YoY in Q2 2025, largely driven by growth in rate and term refinances which were up 101% YoY, and cash-out refinances which increased 23% over the same period.
For the fifth consecutive quarter, the home equity market saw YoY growth, rising 14% in Q2. Gen X and Baby Boomers make up the highest shares of home equity originations. However, Gen Z saw the most significant YoY growth, up 28% and 23% for HELOCs and HELOANs, respectively.
First mortgage delinquencies edged up in Q3 2025, with the consumer-level 60+ DPD rate increasing to 1.36%, up from 1.24% one year prior. FHA loans continued to make up the largest share of delinquencies, although VA loans saw the greatest YoY increase (up 35% YoY).
Q3 2025 mortgage trends
| Mortgage lending metric | Q3 2025 | Q3 2024 | Q3 2023 | Q3 2022 |
| Number of mortgage loans | 54.5 million | 54.1 million | 52.4 million | 52.2 million |
| Consumer-level delinquency rate (60+ DPD) | 1.36% | 1.24% | 0.95% | 0.82% |
| Prior quarter originations* | 1.3 million | 1.2 million | 1.2 million | 1.9 million |
| Average loan amounts of new mortgage loans* | $371,467 | $347,692 | $343,751 | $342,778 |
| Average balance per consumer | $268,060 | $260,900 | $256,858 | $249,326 |
| Total balances of all mortgage loans | $12.7 trillion | $12.3 trillion | $11.8 trillion | $11.5 trillion |
* Originations are viewed one quarter in arrears to account for reporting lag.
Click here for a Q3 2025 mortgage industry infographic. Click here for additional mortgage industry metrics.
Auto loans: Affordability remains an issue for auto lenders
In Q3, auto lending further expanded — with both rate cuts and stable inventories helping offset affordability and ownership cost challenges driven by tariffs.
Auto loan originations grew 5.2% YoY to 6.7 million in Q3, led by super prime (+8.4%) and subprime (+8.8%) borrowers. Average monthly payments for new vehicles rose 3.0% YoY to $769 in Q3 2025, while used vehicle payments increased 3.3% to $538 following a lengthy period of stabilization in 2023 and 2024. Despite rising costs, the mix of vehicles financed in Q2 2025 (43% new and 57% used) closely mirrors pre-pandemic 2019 levels.
Delinquencies of 60+ days rose to 1.45% in Q3 2025, up four basis points YoY, and delinquency rates among 2024 vintages remain elevated compared to 2019, especially within prime and below-prime risk tiers, signaling continued pressure on credit performance.
Q3 2025 auto loan trends
| Auto lending metric | Q3 2025 | Q3 2024 | Q3 2023 | Q3 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 | $769 | $747 | $742 | $707 |
| Average monthly payment USED2 | $538 | $521 | $533 | $528 |
| Average balance per consumer | $24,602 | $24,199 | $23,501 | $22,178 |
| Average amount financed on new auto loans2 | $43,718 | $41,616 | $40,914 | $41,843 |
| Average amount financed on used auto loans2 | $27,037 | $25,891 | $26,794 | $28,410 |
| Account-level delinquency rate (60+ DPD) | 1.45% | 1.44% | 1.34% | 1.07% |
1Note: Originations are viewed one quarter in arrears to account for reporting lag.
2Data from S&P Global MobilityAutoCreditInsight, Q3 2025 data only for months of July & August.
Click here for additional auto industry metrics. Click here for a Q3 2025 auto industry infographic.
Get all the Q3 2025 insights
To ensure you have the most robust analysis, download the report, and register for the Q3 2025 Credit Industry Insight Report webinar for expert commentary on the findings.
