Performance Report: Consumer Unsecured and Subprime Auto, April 2025

Quick Insights

Consumer Credit Mix Continues to Shift

• Non-mortgage credit has remained flat since 2022 after adjusting for inflation and household formation. This plateau, driven by student loan and credit card balance trends, suggests that borrowers are focusing on managing existing debt over taking on new obligations.

Consumer Unsecured Performance Stays Strong

• 30+ Impairments declined 17 bps MoM, 1.5x better than seasonal trends.

• Charge-offs dropped to their lowest point in 3 years, finally falling below pre-COVID levels

• 2024 vintages are now outperforming 2023 on impairment, ROI, and modification outcomes

• But watch loan age 3–6 months: impairments rose for the 9th time in 10 months

Subprime Auto Performance Softens

• 30+ Impairments rose 120 bps MoM, reversing March’s improvement

• Charge-offs failed to decline for the first time in at least 7 years

• High LTV and lower-income borrowers are driving the underperformance