New Macro Report: Credit Cards Lenders Pull Back From No-FICO Borrowers

The Equifax Market Pulse report tracks new account originations across every major consumer asset class, offering one of the broadest, population-based views of consumer credit. dv01's analysis of the data finds bankcard lending drifting steadily toward higher FICO scores, driven by lenders pulling back from no-FICO borrowers rather than looser underwriting.

Quick Insights

• No-FICO bankcard lending has fallen sharply: Origination share fell from a 4.5-5% range during 2012-2024 to just 0.8% in 2026.
• Subprime share rising across every asset class in 2025 and 2026: The report finds the increase in sub-620 lending is not due to credit loosening, but corresponds to the drop in no-FICO lending.
• BNPL is taking share from private label cards: Volumes are down more than 40% since 2019, a decline the report finds to be caused by changes in consumer spending habits and growth in the BNPL sector.
• HELOC originations continue to gather momentum: Volumes rose 25% YoY in 2025 and are up 13% YTD in 2026, on pace to top the post-GFC record of $203 billion in 2022.