CHICAGO—American consumers are maintaining steady, disciplined credit habits, showing signs of stabilization and measured growth across major lending categories despite ongoing economic challenges.
That’s according to TransUnion’s newly released Q2 2025 Credit Industry Insights Report (CIIR), which points to consistent, measured credit use. The report notes that while credit card and unsecured personal loan originations have increased, balance growth remains in check and delinquencies continue to decline.
Following a sharp year-over-year decline in Q1 2024, bankcard originations rebounded in Q1 2025, posting a 4.5% increase (due to reporting lag, originations are reported one quarter in arrears). Outstanding balances in Q2 2025 rose by a similar 4.5% YoY—significantly lower than the YoY balance growth rates observed over the prior three years. Meanwhile, consumer-level 90+ days past due delinquencies (DPD) declined by 9 basis points YoY, marking a subtle but meaningful improvement after consistent yearly increases in delinquencies since 2021, TransUnion said.
“This combination of tempered balance growth and reduced delinquency rates suggests a stabilizing—if not gradually improving—consumer credit environment, even as many households continue to navigate economic challenges,” the company said.
“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. At the same time, delinquency rates declined, signaling that despite ongoing economic uncertainty, consumers continue to demonstrate resilience.”
In addition, credit card charge-off trends have shown signs of improvement. While total charge-off balances remained elevated at just under $17 billion, they held steady YoY. Notably, the number of accounts charged off in Q2 2025 declined to 4.7 million—a 9% decrease compared to the same period last year. Combined with the ongoing decline in delinquencies, these trends point to a stabilizing credit card market and suggest that consumers are making progress in strengthening their financial health, TransUnion said.
“Alongside the encouraging trends in the credit card market, the unsecured personal loan sector is also showing positive momentum. In Q1 2025, unsecured personal loan originations rose sharply—up 18% YoY to a total of 5.4 million accounts. At the same time, delinquency rates remained stable, with a slight YoY decline in 60+ DPD delinquency to 3.37%. This marks the third consecutive quarter of improvement, suggesting that consumers are not only seeking credit, but are also managing it more responsibly—even amid ongoing economic uncertainty.
“Consumers appear to be increasingly successful at adapting to today’s economic realities,” said Michele Raneri, vice president and head of U.S. 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. The continued decline in delinquencies and charge-offs reflects a level of financial discipline that speaks to consumers’ flexibility and determination to stay on track.”