More Americans Have Access to Credit While Debt Growth Has Moderated

Growth in Total Balances and Credit Access Has Remained Steady

*Compound annual growth rate
Source: TransUnion US consumer credit database

Nevertheless, the expansion of credit access does not appear to have resulted in materially greater portfolio risk to lenders, even amid ongoing affordability pressures. While borrower-level credit card delinquency rates increased year over year (YoY), balance-level delinquency rates (1.98% in Q2 2026) are relatively flat, dropping by 2 basis points for the period.

Average non-mortgage minimum payments – the average total amount due per month for all credit accounts in wallet except mortgage – have been modest across all credit risk tiers, up between 1 and 3 percent YoY for all except the prime tier (+3.5%). This indicates that debt obligations have increased at a manageable pace for most borrowers, and generally below the recent rate of inflation. Together, these trends indicate that broader credit availability has not led to excessive consumer debt burdens.

Non-mortgage Minimum Payments Have Grown Slowly YoY Across All Risk Tiers

*Compound annual growth rate
Source: TransUnion US consumer credit database

“While affordability pressures continue to weigh on many households, consumers appear to be managing credit obligations with relative discipline, as evidenced by modest growth in non-mortgage minimum payments and generally stable balance-level delinquency rates,” said Michele Raneri, vice president and head of U.S. research and consulting at TransUnion. “Although some consumers may be experiencing financial challenges, the broader credit picture suggests that balance growth has generally remained aligned with consumers’ ability to service their debt.”

To learn more about the latest consumer credit trends, register for the Q2 2026 Quarterly Credit Industry Insights Report webinar. Read on for more specific insights about credit cards, personal loans, auto loans and mortgages.

New bankcard credit lines grow as lenders implement strategic growth

Q2 2026 CIIR Credit Card Summary

·       Bankcard originations rose 11.8% YoY to 20.6 million, marking a sixth consecutive quarter of growth and a Q1 record. Growth continued to be led by subprime and super prime borrowers, though the pace moderated from recent highs.

·       Total bankcard balances increased 4.4% YoY to $1.14 trillion, while lenders returned to a more growth-oriented strategy. Total credit lines associated with new accounts in the first quarter of 2026 rose 20.9% YoY as lenders increased both acquisition volumes and opened credit lines across all risk tiers.

·       Consumer-level delinquencies edged higher in Q2 2026, with consumers 90+ DPD rising to 2.26%. A growing subprime population largely drove the increase, though delinquency rates improved modestly from the prior quarter on a seasonal basis.

Instant Analysis

“The bankcard market has entered a new phase of growth. After more than a year of tightening, card issuers are expanding access across the credit spectrum, reflecting a larger non-prime borrower population. Lenders appear increasingly comfortable pursuing growth opportunities while maintaining a disciplined approach to risk management.”

–  Paul Siegfried, senior vice president, credit card business leader at TransUnion

Q2 2026 Credit Card Trends

Source: TransUnion U.S. Consumer Credit Database

*Note: Originations are viewed one quarter in arrears to account for reporting lag.

Click here for a credit card industry infographic. For more credit card industry information, click here for episodes of Extra Credit: A Card and Banking Podcast by TransUnion.

Unsecured personal loan lenders continue to balance growth with risk

Q2 2026 CIIR Unsecured Personal Loan Summary

·       Outstanding personal loan balances reached a record $281 billion, up 9.6% YoY. Growth was supported by record borrower and account volumes, up 8.3% and 10.7%, respectively.

·       Lenders are extending credit to more consumers, particularly in subprime, while maintaining underwriting discipline. Subprime borrowers and accounts grew 18.4% and 20.5% YoY, respectively, even as the size of the average new subprime loan fell 6.8%.

·       Personal loans continue to serve as a key tool for debt consolidation and refinancing, with growth concentrated at both ends of the credit spectrum. Originations rose 19.5% YoY, driven by subprime (+29%) and super prime (+9%) borrowers.

Instant Analysis

“Lenders are reaching more consumers than ever, particularly at the subprime end, but they are doing it with smaller loan sizes and tighter underwriting — and it shows in the performance data. Delinquency is rising on a per-borrower basis simply because more non-prime consumers are entering the market, yet on a balance-weighted basis, risk has actually held flat. That is precisely what disciplined expansion is supposed to look like.”

–  Josh Turnbull, senior vice president, consumer lending business leader at TransUnion

Q2 2026 Unsecured Personal Loan Trends

Source: TransUnion U.S. Consumer Credit Database

*Note: Originations are viewed one quarter in arrears to account for reporting lag.

Click here for an unsecured personal loan industry infographic. Click here for additional unsecured personal loan industry metrics.

Mortgage originations grow as refinance activity and delinquencies tick up

Q2 2026 CIIR Mortgage Loan Summary

·       Total mortgage originations rose 26.0% YoY to 1.24 million in Q1 2026, led by a rise in refinance activity as borrowers responded to lower rates during the period. Purchase originations increased 5.8% YoY, supported by growing participation from Gen Z and Millennial homebuyers.

·       Home equity originations increased 5.8% YoY to 560K, driven by 16.8% growth in HELOCs as homeowners accessed equity while preserving low-rate first mortgages. HELOAN volumes declined, reflecting demand for more flexible borrowing options.

·       60+ DPD borrower-level mortgage delinquency reached 1.56% in Q2 2026, up 29 bps YoY although edging down for the quarter. FHA loans accounted for nearly half of all 60+ DPD accounts, highlighting ongoing affordability pressures and increasing risk concentration among more vulnerable borrowers.

Instant Analysis

“The mortgage market continues to show resilience, supported by refinancing activity and steady homebuying demand among younger consumers. Affordability remains a challenge for many households, particularly in more financially vulnerable segments, and delinquency trends warrant continued attention. As market conditions evolve, lenders that can effectively balance growth opportunities with disciplined risk management and a strong understanding of borrower needs will be best positioned for long-term success.”

–  Satyan Merchant, senior vice president, automotive and mortgage business leader, TransUnion

Q2 2026 Mortgage Trends

Source: TransUnion U.S. Consumer Credit Database

* Originations are viewed one quarter in arrears to account for reporting lag.

Click here for a mortgage industry infographic.

Affordability challenges persist as auto delinquency growth slows

Q2 2026 CIIR Auto Loan Summary

·       Auto originations increased 1.3% YoY to 6.4 million in Q1 2026. The modest growth reflects the continued pullback in demand for new vehicles as more consumers are opting for used vehicles.

·       Affordability remains a significant challenge, with monthly payments up 38.7% for new vehicles and 39.6% for used vehicles since 2019. Payment growth continues to outpace both inflation and wage gains, even as interest rates have moderated and loan terms have lengthened.

·       Serious account-level auto delinquency (60+ DPD) remained elevated at 1.33%, up 2 basis points YoY, reflecting ongoing pressure from higher vehicle ownership costs. However, the pace of deterioration has slowed, suggesting credit performance may be stabilizing.

Instant Analysis

“Consumers are continuing to adjust to a vehicle market where affordability remains a key consideration. Higher vehicle operation costs are increasing focus on total cost of ownership, contributing to demand for used vehicles and other budget-conscious alternatives. While the expiration of EV tax credits has raised purchase costs for some consumers, improving vehicle affordability and elevated fuel prices continue to support the appeal of electric vehicles. As market conditions evolve, lenders and dealers that can provide affordable options for consumers will be best positioned to capture demand and drive growth.” 

–  Satyan Merchant, senior vice president, automotive and mortgage business leader at TransUnion

Q2 2026 Auto Loan Trends

Source: TransUnion U.S. Consumer Credit Database

¹Note: Originations are viewed one quarter in arrears to account for reporting lag.

²Data from Mobility Global AutoCreditInsight, Q2 2026 data only through May.

Click here for additional auto industry metrics.

For more information about the report, please register for the Q2 2026 Credit Industry Insight Report webinar.