Credit Access Expands as Lenders Pair Growth with More Strategic Risk Management
Personal loan charge-offs fell 11% year over year to $3.5 billion even as the number of charged-off accounts rose.
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Rhea-AI Summary
TransUnion (NYSE: TRU) released its Q3 2026 Credit Industry Insights Report, showing broader credit access alongside lower balance-level delinquencies. Total outstanding credit balances grew roughly 3% year over year, with 263 million credit-active consumers. Below-prime borrowers accounted for 42.3% of credit card originations and 69.0% of unsecured personal loan originations, up from 40.6% and 66.1%, respectively.
Credit card balances 90 or more days past due fell to 1.99% from 2.05%; unsecured personal loan balances 60 or more days overdue fell to 1.95% from 2.01%. Borrower-level delinquency rose for both products. Mortgage originations increased 12.8% year over year in Q2 2026, while Q3 mortgage borrower delinquency reached 1.64%, with increases concentrated primarily among FHA loans. Auto originations rose 2.3% in Q2, while higher vehicle costs increased financing amounts.
Key Figures
- Bankcard originations
- 22.4 million; up 9.5% YoY
- Q2 2026; record level
- Below-prime bankcard originations
- 42.3% vs. 40.6%
- Q3 2026 vs. Q3 2025
- Bankcard balance-level delinquency
- 1.99% vs. 2.05%
- 90+ DPD, Q3 2026 vs. Q3 2025
- Unsecured personal loan originations
- 8.41 million; up 22.7% YoY
- Q3 2026; record level
- UPL balance-level delinquency
- 1.95% vs. 2.01%
- 60+ DPD, Q3 2026 vs. Q3 2025
- UPL borrower-level delinquency
- 4.12% vs. 3.52%
- 60+ days past due, Q3 2026 vs. Q3 2025
- Mortgage originations
- 1.5 million; up 12.8% YoY
- Q2 2026
- Subprime auto originations
- Up 9.8% YoY
- Most recent quarter; led all risk tiers in YoY growth for five consecutive quarters
Key Terms
dpd financial
charge-offs financial
AI-generated analysis. How Rhea-AI works. Not financial advice.
Q3 2026 TransUnion Credit Industry Insights Report highlights broader credit access for borrowers, lower delinquent balances and improved portfolio performance
CHICAGO, Nov. 05, 2026 (GLOBE NEWSWIRE) -- TransUnion’s (NYSE: TRU) newly released Q3 2026 Credit Industry Insights Report (CIIR) found that credit card and unsecured personal loan (UPL) lenders expanded lending over the past year while increasing the share of new accounts opened by riskier borrowers with below-prime credit scores. Despite that expansion, strategic risk mitigation helped lenders reduce delinquent balances across their portfolios.
Following a period of rapid growth, the credit market has settled into a more consistent expansion pattern. Total outstanding balances grew by roughly
Against this backdrop, lenders of unsecured credit products such as credit cards and UPL have increasingly looked to borrowers with below prime credit scores – 660 and below as measured by VantageScore 4.0 – as a source of growth, applying targeted risk-management strategies that help balance portfolio expansion with stable credit performance.
“Lenders have limited exposure and improved portfolio performance through the use of strategies such as lower credit lines, smaller loan amounts and interest rate adjustments for consumers in below prime risk tiers,” said Jason Laky, executive vice president and head of financial services at TransUnion. “As a result, balance-level delinquencies have declined even as a greater share of lending has gone to higher-risk borrowers."
| Lenders Have Expanded Credit to Below Prime Tiers While Still Seeing Balance-level Delinquency Decline | ||||
| Q3 2026 | Q3 2025 | Q3 2024 | Q3 2023 | |
| Credit Card | ||||
| Below Prime Origination %* | ||||
| Balance-level 90+ DPD Delinquency | ||||
| Unsecured Personal Loan | ||||
| Below Prime Origination %* | ||||
| Balance-level 60+ DPD Delinquency | ||||
The auto market has shown a similar trend. Subprime originations have rebounded strongly, leading all risk tiers in YoY growth for five consecutive quarters and increasing
Charge-off trends further show that lenders are expanding access to below-prime consumers without significantly increasing risk. Credit card charge-offs remained essentially flat YoY, edging down from
“The most effective lending strategies recognize that financial success is shared between borrowers and lenders,” said Charlie Wise, head of global research and consulting at TransUnion. “As lenders continue balancing growth with prudent risk management, consumers are increasingly focused on managing budgets and meeting obligations. When both sides make thoughtful, data-informed decisions, credit can remain accessible, sustainable, and beneficial for consumers seeking financial opportunities and lenders safeguarding long-term portfolio performance.”
To learn more about the latest consumer credit trends, register for the Q3 2026 Quarterly Credit Industry Insights Report webinar. Read on for more specific insights about credit cards, personal loans, auto loans and mortgages.
Bankcard originations continue at a record pace, driving moderate balance growth
Q3 2026 CIIR Credit Card Summary
- Bankcard originations reached a record 22.4 million in Q2 2026, rising
9.5% YoY and marking the seventh consecutive quarter of growth. One in four new accounts was opened by non-prime borrowers (subprime up +16.5% YoY and near prime up +11.6% ), underscoring issuers’ continued efforts to broaden financial inclusion access across risk segments. - Total bankcard balances climbed
4.5% YoY to$1.16 trillion in Q3 2026, continuing steady growth that has ranged between4.2% and4.6% since Q1 2025. The balanced growth rate reflects resilient consumer spending and expansion in the number of active cardholders. - Delinquencies continued to trend higher at the consumer level but improved on a balance basis. The borrower-level 90+ DPD delinquency rate rose 13 basis points YoY to
2.50% , while balance-level delinquency declined from2.05% to1.99% , the lowest level since 3Q23.
Instant Analysis
“The bankcard market continues to demonstrate healthy growth, with record originations, steady balance expansion and broadening credit access across risk tiers. Much of that growth is coming from subprime and near-prime consumers, reflecting issuers’ confidence in serving a wider range of borrowers. Borrower-level delinquency has trended higher over the past year; however, improving balance-level performance suggests lenders are successfully managing credit risk. Looking ahead, consumers continue to enjoy an unmatched position of competitive card offers as lenders prioritize disciplined growth strategies.”
- Paul Siegfried, senior vice president, credit card business leader at TransUnion
| Q3 2026 Credit Card Trends | ||||
| Credit Card Lending Metric (Bankcard) | Q3 2026 | Q3 2025 | Q3 2024 | Q3 2023 |
| Number of Credit Cards (Bankcards) | 590.5 million | 567.5 million | 545.1 million | 530.6 million |
| Balance-Level Delinquency Rate (90+DPD) | 1.99% | |||
| Borrower-Level Delinquency Rate (90+ DPD) | 2.50% | |||
| Total Credit Card Balances | ||||
| Average Debt Per Borrower | $6,678 | |||
| Number of Consumers Carrying a Balance | 178.0 million | 174.8 million | 171.4 million | 168.6 million |
| Prior Quarter Originations* | 22.4 million | 20.4 million | 18.8 million | 20.5 million |
| Average New Account Credit Lines* | $5,785 | |||
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.
Record unsecured personal loan originations reflect sustained consumer borrowing demand
Q3 2026 CIIR Unsecured Personal Loan Summary
- The unsecured personal loan market reached new highs in Q3 2026, with originations climbing
22.7% YoY to a record 8.41 million loans and outstanding balances rising9.0% to$293.4 billion . The number of consumers carrying an active UPL balance also increased8.3% to 28.0 million. - FinTechs remained the primary growth engine, originating
49.4% of all UPLs and contributing the majority of YoY origination growth. While finance companies and credit unions posted modest gains and bank volumes were flat, these traditional lender groups continued to hold significant balances and maintain consistent credit performance. - Credit trends were mixed as borrower-level delinquency increased while balance-level performance remained stable. The share of borrowers 60+ days past due rose to
4.12% , but balance-level 60+ day delinquency held steady at1.95% and new charge-off balances declined, limiting growth in overall dollar exposure.
Instant Analysis
“The unsecured personal loan market continues to expand as lenders meet strong consumer demand, driving record originations, balances and borrower counts. Notably, growth is being fueled by a larger number of smaller loans, particularly among subprime consumers, helping broaden access without a proportional increase in overall exposure. While borrower-level delinquency has risen, stable balance-level performance and declining charge-offs suggest risk remains manageable. Looking ahead, lenders will remain focused on balancing growth opportunities with disciplined underwriting as market participation continues to widen.”
- Josh Turnbull, senior vice president, consumer lending business leader at TransUnion
| Q3 2026 Unsecured Personal Loan Trends | ||||
| Personal Loan Metric | Q3 2026 | Q3 2025 | Q3 2024 | Q3 2023 |
| Total Balances | ||||
| Number of Unsecured Personal Loans | 34.9 million | 31.8 million | 29.3 million | 27.8 million |
| Number of Consumers with Unsecured Personal Loans | 28.0 million | 25.8 million | 24.2 million | 23.2 million |
| Balance-Level Delinquency Rate (60+ DPD) | 1.95% | |||
| Borrower-Level Delinquency Rate (60+ DPD) | 4.12% | |||
| Average Debt Per Borrower | $11,697 | |||
| Average Account Balance | $8,407 | |||
| Prior Quarter Originations* | 8.4 million | 6.9 million | 5.4 million | 5.1 million |
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.
Lower rates lift mortgage activity as FHA delinquencies rise
Q3 2026 CIIR Mortgage Loan Summary
- Mortgage originations increased
12.8% year over year to 1.5 million in Q2 2026, as lower rates supported stronger purchase and refinance activity. Refinance volume rose approximately40% , increasing its share of total originations to21.5% from17.4% a year earlier. Rate-and-term refinance volume led the increase, rising nearly60% . - Mortgage performance remained generally stable, though serious delinquency rates continued to normalize from historically low pandemic-era levels. The borrower-level 60+ day delinquency rate reached
1.64% in Q3 2026, with increases concentrated primarily among FHA loans, which now represent nearly half of all seriously delinquent mortgage accounts. Performance on other loan types, including Fannie, Freddie, and Jumbo remained stable. - Home equity originations increased
10.1% year over year to 757,000. HELOC originations rose20.3% and represented more than half of all home equity originations, signaling continued demand for flexible access to accumulated home equity.
Instant Analysis
“Lower rates created a meaningful lift in mortgage activity during the second quarter, particularly for refinance and home equity lending. While overall mortgage performance remains relatively stable, the concentration of serious delinquency among FHA loans warrants monitoring. Looking ahead, interest rates will continue to shape purchase and refinance demand. At the same time, home equity products may remain an important source of liquidity for borrowers seeking to preserve their low mortgage rates."
- Satyan Merchant, senior vice president, automotive and mortgage business leader, TransUnion
| Q3 2026 Mortgage Trends | ||||
| Mortgage Lending Metric | Q3 2026 | Q3 2025 | Q3 2024 | Q3 2023 |
| Number of Mortgage Loans | 54.7 million | 54.5 million | 54.0 million | 52.4 million |
| Borrower-Level Delinquency Rate (60+ DPD) | 1.64% | |||
| Prior Quarter Originations* | 1.5 million | 1.31 million | 1.20 million | 1.19 million |
| Average Loan Amounts of New Mortgage Loans* | $384,279 | |||
| Average Balance per Borrower | $274,499 | |||
| Total Balances of All Mortgage Loans | ||||
Source: TransUnion U.S. Consumer Credit Database
* Originations are viewed one quarter in arrears to account for reporting lag.
Click here for additional mortgage industry metrics.
Auto growth persists despite continued affordability concerns
Q3 2026 CIIR Auto Loan Summary
- Auto loan originations totaled 6.8 million in Q2 2026, up
2.3% YoY. Growth was concentrated in below-prime segments, led by subprime originations (+9.8% ), while growth for prime plus and super prime was subdued amid higher vehicle prices and tariff pressures. - Outstanding auto loan balances reached
$1.65 trillion in Q3 2026, up2.1% YoY, while average new account balances increased4.1% . Rising vehicle costs continued to push financing amounts higher, with average balances financed increasing3.5% for new vehicles and3.9% for used vehicles YoY. - Performance remained generally stable, with 60+ DPD account delinquency declining 2 basis points YoY to
1.43% in Q3 2026. Q4 2025 new account vintages show similar delinquency levels in their first year as pre-pandemic originations, particularly among prime and lower credit risk tiers. Used-vehicle vintages showed modest improvement, while new-vehicle vintages showed some deterioration.
Instant Analysis
"The auto finance market remains resilient, with originations growing year over year even as balances and monthly payments rise. Lending continues to grow, particularly among below-prime consumers, while higher vehicle and ownership costs continue to influence purchasing decisions. Overall delinquency remains relatively stable, suggesting consumers are managing their obligations. Looking ahead, affordability, shifting vehicle preferences and performance across consumer segments will remain important factors shaping the market."
- Satyan Merchant, senior vice president, automotive and mortgage business leader at TransUnion
| Q3 2026 Auto Loan Trends | ||||
| Auto Lending Metric | Q3 2026 | Q3 2025 | Q3 2024 | Q3 2023 |
| Total Auto Loan Accounts | 79.4 million | 80.2 million | 80.2 million | 80.4 million |
| Prior Quarter Originations1 | 6.8 million | 6.7 million | 6.4 million | 6.3 million |
| Average Monthly Payment NEW2 | $788 | |||
| Average Monthly Payment USED2 | $551 | |||
| Average Balance per Consumer | $25,525 | |||
| Average Amount Financed on New Auto Loans2 | $44,503 | |||
| Average Amount Financed on Used Auto Loans2 | $28,026 | |||
| Consumer-Level Delinquency Rate (60+ DPD) | 1.64% | |||
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, Q3 2026 data only through August.
Click here for additional auto industry metrics.
For more information about the report, please register for the Q3 2026 Credit Industry Insight Report webinar.
About TransUnion (NYSE: TRU)
TransUnion is a global information and insights company with over 13,000 associates operating in more than 30 countries. We make trust possible by ensuring each person is reliably represented in the marketplace. We do this with a Tru™ picture of each person: an actionable view of consumers, stewarded with care. Through our acquisitions and technology investments we have developed innovative solutions that extend beyond our strong foundation in core credit into areas such as marketing, fraud, risk and advanced analytics. As a result, consumers and businesses can transact with confidence and achieve great things. We call this Information for Good® — and it leads to economic opportunity, great experiences and personal empowerment for millions of people around the world.
http://www.transunion.com/business
| Contact | Dave Blumberg |
| TransUnion | |
| david.blumberg@transunion.com | |
| Telephone | 312-972-6646 |
FAQ
AI-generated questions and answers. How Rhea-AI works. Not financial advice.
What did TransUnion's Q3 2026 credit report show about lending to below-prime borrowers?
Below-prime borrowers accounted for 42.3% of credit card originations and 69.0% of unsecured personal loan originations, compared with 40.6% and 66.1% a year earlier. Balance-level delinquency declined for both products despite the increased share of lending to these borrowers.
Why did balance-level delinquencies improve in TransUnion's Q3 2026 credit report?
TransUnion attributed improved balance-level performance to lenders limiting exposure through lower credit lines, smaller loan amounts and interest rate adjustments for below-prime consumers. This distinction matters because the share of borrowers with overdue credit card and unsecured personal loan accounts increased even as the share of overdue balances declined.
What period do originations cover in TransUnion's Q3 2026 credit report?
Originations are reported one quarter in arrears to account for reporting delays. The Q3 2026 trend tables therefore present prior-quarter originations, rather than lending completed during the same quarter as the reported balances and delinquency rates.