Personal loan popularity soars as balances surpass $100 billion

Latest TransUnion report reveals more than 15 million consumers have a personal loan

Q2 Personal loan growth year over year

More than 3.57 million personal loans were originated in the second quarter, down 0.5% from 3.58 million in Q2 2015.

Originations are viewed one quarter in arrears to ensure all accounts are included.

  • Subprime
  • Near Prime
  • Prime
  • Prime Plus
  • Super Prime

Q2 Personal Loan Growth Year over Year by Risk Tier

In Q2 2016, near prime originations declined 4.7% and prime originations declined 2.7%, while both subprime and super prime originations grew by 3.2%, compared to Q2 2015.

Consumers with a Balance in Q3

More than 15 million consumers had a personal loan in the third quarter of 2016, and the number of consumers with a personal loan grew by 1.5 million between Q3 2015 and Q3 2016.

Total Balances ($B) in Q3

Despite surpassing $100 billion, total personal loan balances experienced the slowest third quarter growth rate since Q3 2013.

Mortgage

The mortgage delinquency rate declined 8.4% from 2.50% in Q3 2015 to 2.29% in Q3 2016, the lowest level since Q3 2009.

Mortgage - Delinquency Rates

Mortgage - Average Balance per Consumer

Auto

Auto loan delinquency reached 1.33% in Q3 2016, up from 1.19% in the third quarter of 2015.

Auto - Delinquency Rates

Auto - Average Balance per Consumer

Credit

The credit card delinquency rate remained relatively low at 1.53% in Q3 2016, an increase of nine basis points from a Q3 2015 reading of 1.44%.

Credit Cards - Delinquency Rates

Credit Cards - Average Balance per Consumer

Personal loans

The unsecured personal loan delinquency rate remained stable at 3.30% in Q3 2016, compared to 3.32% in Q3 2015.

Personal Loans- Delinquency Rates

Personal Loans - Average Balance per Consumer