CHICAGO—Unsecured personal loan activity surged in the second quarter of 2025, reaching new highs in both originations and balances while credit performance remained broadly stable, according to TransUnion’s latest Credit Industry Insights Report.
Originations climbed to 6.9 million in Q2 2025, a 26% year-over-year jump driven in part by increased lending to higher-risk consumers. Subprime originations rose 35% and near-prime loans increased 26%. Fintech lenders continued to play a dominant role in the category, accounting for more than 40% of new loans after a brief slowdown in the prior quarter.
Total balances hit a record $269 billion in Q3 2025—an 8% increase year-over-year and the strongest pace since early 2024. Growth spanned all credit tiers, with super-prime borrowers leading at 11%. Fintechs now hold more than half of all outstanding personal-loan balances, compared with 21% held by banks.
Credit performance held firm despite the expansion. Delinquencies remained relatively steady at 3.52% for accounts 60-plus days past due, up slightly from 3.50% a year earlier. Subprime delinquency improved, declining to 11.4% from 11.9%, while other tiers showed stability—an early sign of strengthening among riskier borrowers.
“Sustained growth in the unsecured personal loan saw 26% year-over-year originations growth and balances reaching a record $269 billion,” stated Josh Turnbull, senior vice president, consumer lending business leader at TransUnion. “This growth was led by fintechs, as they continued gaining share in the super prime segment, and as growth picked up significantly in non-prime credit tiers. More precise risk strategies have enabled this confidence, as evidenced by serious delinquency growing only two basis points year-over-year as lending volumes grow and buy boxes open.”