TransUnion Sees 24% Q3 Personal Loan Surge, 12.7% Credit Card Delinquency
New personal loans jumped 24% year-over-year in Q3 2025 and new credit card accounts rose 11.7%, led by subprime and superprime consumers. Credit card delinquencies climbed to 12.7% and balances grew 4.2% as personal loan balances hit a record $276 billion.
1. Surge in Borrowing
In the third quarter of 2025 new personal loan originations rose 24% compared to a year earlier, driven largely by borrowers with the lowest credit scores. New credit card accounts also increased 11.7%, with both subprime and superprime segments contributing to the uptick.
2. Rising Delinquencies and Balances
Credit card balances expanded by 4.2% by year-end, marking the fourth consecutive quarter of similar growth. Delinquency rates on credit card balances reached 12.7% of accounts overdue by 90 days or more, the highest level since 2011.
3. Record Personal Loan Totals
Personal loan balances climbed to a record $276 billion, though average balances per account remained near $8,400, roughly flat from 2024. The surge underscores consumers’ growing reliance on unsecured credit amid elevated price levels.
4. Outlook for 2026
Origination volumes for both credit cards and personal loans are expected to moderate this year as inflation cools further and borrowing costs stabilize. Market forecasts anticipate a slowdown in new account growth, signaling a potential deceleration in future fee and interest income.