Q1 Credit Trends Report Takes ‘K-Shaped Path’ as Market Polarizes
TransUnion’s latest quarterly Credit Industry Insights Report finds the superprime and subprime credit tiers are growing, thinning the “middle” tiers — prime plus, prime and near prime — while pressure rises for nonprime borrowers.
In the first quarter, the superprime segment accounted for more than 40% of the credit-active population while subprime rebounded to pre-pandemic levels.
“Simultaneous growth at the top and bottom of the credit spectrum underscores a widening gap between borrowers who can absorb higher costs and those facing mounting financial pressure,” the report states.
Analysts note repayment trends have been favorable, presumably offsetting concerns for finance sources.
“Although affordability challenges remain, the pace of delinquency growth has slowed, suggesting early signs of stabilization despite higher vehicle prices and monthly payments.”
