July Update: Consumer Unsecured Outperforms Seasonal Trends, TransUnion Data Shows Slower Credit Growth, Federal Reserve Points to Younger Borrower Prudence

Our latest performance report is now available.

Quick Insights

Consumer Unsecured: Borrowers Continue to Manage Through Seasonal Pressures

• 30+ Impairments rose just 7 bps MoM, smaller than seasonal trends

• Net charge-offs held at 0.65%, materially outperforming historical seasonal norms

• Divergence by grade: Top Grades show sharpest declines in charge-offs, Middle Grades remain above pre-COVID level

TransUnion Data: Auto Outperforms, Credit Growth Slows Further

• Auto loans continue to materially outperform credit cards on delinquencies

• Georgia and Louisiana lead performance, while Oklahoma, Utah, and the Dakotas lag

• Credit limit growth remains muted (+0.3% YoY in June, the slowest on record)

Federal Reserve Data: Younger Households Rein in Debt

• Total credit balances rose $185B in Q2-2025, but non-mortgage growth remains flat vs. pre-COVID

• Households aged 18–29 saw balances decline for the fifth straight quarter; 30–39 households now flat-to-lower on a per-household basis

• Younger borrowers are carrying substantially less debt, with credit card growth slower than all other age cohorts