April 2026 Consumer Unsecured Performance: Strong Results, but Cracks Emerge at the Margins

dv01's latest Consumer Unsecured Performance Report shows April delivered another month of broad outperformance on a seasonally adjusted basis, extending the sector's record-setting two-year run. The headline numbers remain strong, but cure rate weakness and unexpected Bottom Grade ROI deterioration are worth watching closely.

What the Data Shows: Sustained Outperformance, with Two Notable Exceptions

• Impairments continue to improve: 30+ Impairments fell 15 bps in April and were 40 bps below April 2025, outperforming seasonal trends even against tougher year-over-year comparisons.
• Net Impairment Change remains the standout metric: Impairment Net Charge-offs rose just 1 bp MoM and have run -10 bps YoY or lower for 22 consecutive months, surpassing 2021 records in both duration and scale.
• Cure rates flash a caution signal: Cure rates dropped below 20% for the first time since May 2025 — the third instance of underperformance this year and the most concerning data point in an otherwise strong report.
• Bottom Grade ROI diverges unexpectedly: Despite 2025-Q1 matching 2024-Q4 across most metrics, its Bottom Grade ROI has fallen nearly 200 bps behind by month 12; a gap not explained by GWAC differences, and likely reflecting a lapse in underwriting diligence as volume recovered.

What We’re Watching

• Whether cure and Made Payment weakness signals structural deterioration or simply reflects a smaller, more adversely selected pool of delinquent borrowers
• Whether 2025-Q2 vintage weakness proves one-off as 2025-H2 vintages come into view
• How the significant deterioration in Middle and Bottom Grade ROIs among recent vintages affects underwriting practices outside of Top Grades