CHICAGO—The first quarter of 2025 reflected credit card trends indicating a return to equilibrium, similar to those observed towards the end of 2024, TransUnion reported.
Notably, consumer-level delinquencies of 90+ days past due decreased for the second consecutive quarter, dropping by 12 basis points year-over-year (YoY) to 2.43%.
“This marks the first consecutive quarters of YoY delinquency decline since 2020, during the height of the pandemic. In Q4 2024, total originations volume experienced a slight YoY increase of 0.1%. Although modest, this represents the first YoY growth in six quarters,” TransUnion said, citing its latest data.
Subprime originations saw a YoY growth of 2.9% in Q4 2024, the first in eight quarters, while super prime originations grew by 5.3% for the second consecutive quarter.
“Despite the uptick in originations, credit line amounts on new cards continue to trend downward. The average credit line on new accounts decreased slightly by 0.3% YoY in Q4 2024, with growth in super prime lines offsetting smaller lines in prime and below,” the company said.
"We continue to observe signs that serious delinquencies may have peaked, with consumers managing their credit card usage more effectively,” said Paul Siegfried, senior vice president and credit card business leader at TransUnion. “The year-over-year decline in 90+ days past due delinquencies, along with slower balance growth and stable utilization rates, indicates emerging market stability. We anticipate further declines in serious delinquencies in the coming quarters, primarily due to lenders' intentional management of credit lines and cardholder risk profiles."
Q1 2025 Credit Card Trends