Nearly 4 out of 10 Consumers to Seek Credit, Refinance Despite Increasing Tariff Anxieties

Americans worry about the economy, but that’s not preventing almost 4 out of 10 consumers from opening new credit cards and lines of credit, according to TransUnion’s Q2 2025 Consumer Pulse report.

Credit demand is holding strong, but growing economic jitters could mean rising risk — particularly among nonprime segments. Issuers should keep a close eye on credit trends and adapt underwriting models to stay ahead of potential delinquencies and charge-offs.

The survey found that 55% of respondents are optimistic about finances in the coming year, while 27% were pessimistic — an all-time record since TransUnion began tracking the indicator. The gap mirrors an uncertain world where guarded optimism battles tariff uncertainty and persistent inflation.

“There’s clearly tension between what occurs in the news and what you feel at home,” said Charlie Wise, SVP of Research and Consulting for TransUnion. “The general sentiment may be negative, but the majority of households still aim to prepare for financial progress.”

Consumers, at least, still feel good about their individual finances even while macroeconomic storm clouds accumulate in the distance.

One of the strongest uncertainty indicators among consumers is seeking credit. Among those very concerned about tariffs, 37% indicated plans to seek new credit or refinance next year. In comparison, only 30% of consumers less concerned made similar reports.

“This is thinking ahead,” Wise explained. “It’s building in flexibility at this moment, such that they won’t be left short if costs spike again.”

TransUnion went on to add that inflation remains among the big-ticket concerns among more than 4 of 5 consumers.

There have been sharp spikes in fear regarding recession ever since the previous quarter, suggesting everyone is insuring themselves via available credit.

On the plus side of the credit spectrum, consumers with high credit scores still produce volume at the high end. These borrowers aren’t looking for safety nets — they’re focused on optimizing spending.

“Balances among super-prime customers are higher than in 2019, but that’s activity, not distress,” Wise noted. “It’s monthly spending more than it’s rolling debt.”

He pointed out that issuers in this sector are compensating with better perks and augmented retention strategies. “It’s not about issuing credit — it’s about creating experiences to deepen loyalty.”

As student loan payments come back onto credit reports, lenders have one puzzle to solve: risk. An estimated 5.8 million borrowers have been deemed delinquent since payments having resumed. Nonetheless, Wise cautioned issuers not to draw premature conclusions.

“Many of those borrowers are still making other payments,” he noted. “We’ve seen people pay auto loans or cards but not pay student loans. That’s not always a sign of broader risk.”

As part of an attempt to clarify the picture, TransUnion has launched a credit attributes suite designed to distinguish student loan activity from general patterns of performance.

Buy Now, Pay Later continues to rise, particularly among millennials. To date, however, this kind of activity has remained mostly unreported.

“With more data coming in from BNPL lenders, lenders get an overall better picture of what the borrower owes,” Wise said.

Younger generations, particularly millennials, are more likely to lean on BNPL services than other groups.

It’s all about the situation. Wise noted that BNPL is utilized by certain consumers to cover cash flow or earn flexibility on big-ticket purchases — whereas still other consumers resort to it after depleting orthodox credit.

“Understanding which use case applies will matter to issuers,” he observed. “That’s where risk modeling, in the next phase, is heading.”

Despite challenges, Wise reported that issuers of credit cards are still bullish about portfolio growth.

“There’s a massive difference between growth for growth’s sake versus purpose-driven growth,” he described. “Right now, lenders are favoring segmentation, timing, and additional data.”

Delinquencies rose during recent years, but lenders’ responses have lifted performance sharply. “We’ve had a rough stretch, but consumers with strong income and good behavior are still solid,” Wise said.