"The share of consumers taking out the riskiest form of loans has reached its highest peak this decade, a sign of growing financial stress for many Americans. The share of consumers taking on subprime loans accounted for 14.4% of borrowers in 2025's third quarter, up from 13.9% from the same period in 2024 and the highest since 2019, according to a TransUnion report released Monday, which analyzes consumer credit data."
"About 25% of the U.S. population has a FICO credit score below 660, meaning they are subprime, according to Apollo chief economist Torsten Sløk, citing data from the Federal Reserve Bank of St. Louis. The share of consumers in the subprime credit risk category fell during the pandemic as government stimulus helped many Americans pay down their debts. But as the subprime tier swells once more, it adds to signs that many are facing increased financial pressures:"
"The percentage of subprime borrowers at least 60 days late on auto loan payments has reached 6.43%, double what it was in 2021, according to Fitch Ratings. TransUnion also reported a growing share of super prime borrowers-which increased from 37.1% in 2019's third quarter to 40.9% in the same period this year, and the credit market has expanded, growing the number of super prime borrowers by 16 million since 2019."
Subprime loans accounted for 14.4% of borrowers in 2025's third quarter, up from 13.9% in Q3 2024 and the highest level since 2019. About 25% of the U.S. population has a FICO score below 660 and is subprime. The subprime share fell during the pandemic as stimulus allowed debt paydown but has expanded since; subprime auto borrowers 60+ days delinquent reached 6.43%, double 2021 levels. Home foreclosure filings rose year over year for six straight months. Super prime borrowers grew from 37.1% to 40.9% and added 16 million since 2019, while consumer-level delinquencies narrowed to 2.37%, showing credit-risk polarization.
Read at Fortune
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