Credit Access Expands as Lenders Pair Growth with More Strategic Risk Management

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 3% year-over-year (YoY) in Q3 2026 as the number of credit-active consumers reached 263 million. The K-shaped distribution that emerged in recent years, with growth concentrated among both super prime and below prime consumers, has largely stabilized.

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.”

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 9.8% YoY in the most recent quarter. Even as lenders expanded credit access to higher-risk consumers, they successfully mitigated risk. As a result, 60+ DPD balance-level delinquency has remained stable, declining one basis point YoY to 1.64% in Q3 2026.

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 $15.79 billion to $15.76 billion in Q3 2026. UPL showed a similar trend, with charge-offs dropping 11% YoY to $3.5 billion. This decline in dollar charge-offs occurred even as the volume of charged-off accounts rose, suggesting lenders effectively managed exposure and limited loss severity while extending credit to higher-risk borrowers.

“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 between 4.2% and 4.6% 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 from 2.05% to 1.99%, 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

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 rising 9.0% to $293.4 billion. The number of consumers carrying an active UPL balance also increased 8.3% 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 at 1.95% 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 

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 approximately 40%, increasing its share of total originations to 21.5% from 17.4% a year earlier. Rate-and-term refinance volume led the increase, rising nearly 60%.
• 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 rose 20.3% 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

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, up 2.1% YoY, while average new account balances increased 4.1%. Rising vehicle costs continued to push financing amounts higher, with average balances financed increasing 3.5% for new vehicles and 3.9% 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

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)

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