CHICAGO—Auto loans, credit cards and personal loans all saw year-over-year growth in subprime originations this past quarter, according to a new report.
The TransUnion report is a sign that lenders are returning to this space following several consecutive quarters of declining originations, stated the Associated Press in its analysis.
Credit cards, by far the most popular credit product, reversed a declining originations trend with year-over-year growth observed for the first time since 2016, the report shows.
Growth of 3.6% was seen by subprime and positive growth was observed in the prime plus and super prime risk tiers, the AP said.
“The current industry-wide treatment of subprime appears to be one in which lenders are providing more access to credit cards, though with smaller credit limits,” the AP said.