Feb 2026 - Consumer Unsecured Update: Strong Performance, Less Room for Improvement

dv01’s February 2026 Consumer Unsecured Performance report is now available. Even as overall performance remains strong, understanding where—and why—returns are diverging is becoming increasingly important.

What the Data Shows: Strong Performance, Less Room for Improvement

• Performance remains strong, but improvement is moderating: February metrics continued to outperform seasonal trends, though by a smaller margin than 2025 given tougher comps

• Charge-offs are now a key driver of strength: Falling below pre-COVID levels and reaching their lowest point since 2022, even as impairments remain elevated

• Early loan age performance is improving: The 3–6 month cohort saw the largest decline in impairments, suggesting stabilization in more recent vintages after prior softness

What We’re Watching: Emerging Divergence Beneath the Surface

• Whether the recent underperformance in cure and Made Payment rates—albeit from record high levels— reflects a modest reversion after the Q4-2025 surge or is an early sign of a pause in wholesale performance improvement

• How improvement in impairments across loan ages 3-12 will translate into better aggregate metrics on the 2025-Q3 and Q4 vintages

• Whether Bottom Grade weakness is an early signal of broader performance divergence