New analysis suggests consumers are learning to adapt to economic pressures
American consumers demonstrated disciplined credit behavior in the second quarter of 2025, with key lending categories showing stabilization and measured growth, according to TransUnion’s latest Credit Industry Insights Report released Thursday.
The credit card sector experienced its first annual growth in originations since 2022, with new accounts rising 4.5% year-over-year to 18.5 million in the first quarter of 2025. Outstanding balances increased by a similar 4.5% to $1.09 trillion in Q2 2025, representing significantly slower growth than the double-digit increases seen in 2022 and 2023.
Consumer-level delinquencies improved, with 90-plus days past due rates declining to 2.17% from 2.26% the previous year. This marked the second consecutive quarter of year-over-year decreases.
“We’re increasingly seeing the credit card lending market return to pre-pandemic patterns,” said Jason Laky, executive vice president and head of financial services at TransUnion. “Originations experienced their most significant year-over-year growth since 2022, while balance growth normalized to more historical levels.”
The unsecured personal loan market continued expanding, with originations jumping 18% year-over-year to 5.4 million accounts in Q1 2025. Total balances reached a record $257 billion in Q2 2025, up 4% from the previous year.
Delinquency rates in this sector showed modest improvement, with 60-plus days past due rates declining slightly to 3.37%, marking three consecutive quarters of improvement.
Auto loan delinquencies continued rising, reaching 1.31% for consumers 60-plus days past due in Q2 2025, surpassing 2009 levels. However, the pace of growth has slowed, suggesting delinquencies may be approaching a peak.
Mortgage delinquencies also increased, with the consumer-level 60-plus days past due rate rising to 1.27%, nearing pre-pandemic levels.
Despite ongoing economic challenges, the data suggests consumers are adapting to current conditions with measured credit usage.
“Consumers appear to be increasingly successful at adapting to today’s economic realities,” said Michele Raneri, vice president and head of US research and consulting at TransUnion. “While many are still relying on credit to manage everyday expenses, the data suggests they’re doing so in a controlled manner.”
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