CHICAGO— American consumers are exhibiting steady and disciplined credit behavior, with signs of “stabilization and measured growth across key lending categories—even as they continue to navigate a complex economic landscape,” according to the new Q2 2025 Credit Industry Insights Report (CIIR) from TransUnion.
“While credit card and unsecured personal loan originations have risen, their balance growth remains controlled and delinquencies have continued to decline,” the company said in releasing its findings.
According to TransUnion, following a sharp year-over-year (YoY) 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 nine basis points YoY, marking a subtle but meaningful improvement after consistent yearly increases in delinquencies since 2021, TransUnion stated.
‘Tempered Growth’
“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 added.
“We’re increasingly seeing the credit card lending market return to pre-pandemic patterns,” Jason Laky, executive vice president and head of financial services at TransUnion, said in a statement. “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.”
Improving Trends
TransUnion also reported that 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,” the analysis stated. “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.”
‘Positive Momentum’
Meanwhile, TransUnion said that 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%,” the company pointed out. “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.
‘Economic Realities’
“Consumers appear to be increasingly successful at adapting to today’s economic realities,” Michele Raneri, vice president and head of U.S. research and consulting at TransUnion, said in a statement. “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.”
For additional info;: Q2 2025 Quarterly Credit Industry Insights Report webinar. Read on for more specific insights about credit cards, personal loans, auto loans and mortgages.
