TransUnion Spots Growth at Both Ends of Credit Spectrum

Credit bureau TransUnion released a new report today revealing growth in the percentage of consumers on either end of the credit spectrum. 

Credit card issuers can use insights from industry stakeholders to tailor their marketing and product design strategies, allowing them to meet the diverse and evolving needs of cardholders. 

The share of consumers in the U.S. who fall in the super prime credit risk category rose from 37.1% in the third quarter of 2019 to just shy of 41% in 2025’s third quarter, according to the report. The growth over that time period represents an addition of roughly 16 million consumers to the super prime segment.

Charlie Wise, senior vice president and head of global research and consulting at TransUnion, told us “the credit card market is showing steady growth and improved consumer credit performance, with origination volumes rising across both super prime and subprime segments.”

Meanwhile, TransUnion reports that the percentage of consumers in the subprime classification has grown to 14.4% in the third quarter of this year after dipping to 12.5% and 11.8% in the third quarters of 2020 and 2021, respectively.

The report attributes the changes in the early 2020s, at least in part, to lower expenses that people had during that time as well as relief programs that helped consumers weather economic impacts from the pandemic.

The super prime credit risk tier, according to TransUnion data, has grown by about 16 million borrowers since 2019.

Jason Laky, Executive Vice President and Head of Financial Services at TransUnion, commented in the press release on the data and what it may reveal about consumers.

“While super prime has steadily grown since the pandemic, subprime has returned to pre-pandemic levels — leaving the middle tiers increasingly thinner,” Laky explained. “This shift suggests that while many consumers are navigating the current economic climate well, others may be facing financial strain.”

With more consumers moving into the super prime and subprime categories, issuers that offer one-size-fits-all credit card programs may want to consider adjusting their strategies to suit the varied needs of cardholders.

The TransUnion report indicates that the average credit lines on new accounts have gone down by 1.6% on a year-over-year basis. The subprime market saw the biggest drop in year-over-year credit lines compared to the other risk tiers with a 5% plunge.

Credit card issuers can examine the behavior of their borrowers in the super prime segment and determine if their risk models support offering them higher credit limits. 

Larger limits can encourage current cardholders to spend more. And prospects in search of a product that allows them to boost their purchasing power may apply for a certain issuer’s card if they ascertain that the issuer has a tendency to offer higher limits.

“Lenders are managing risk more carefully through lower new account credit lines, contributing to declining delinquency rates and more responsible payment behavior,” Wise told us.

Credit card rewards continue to be popular with U.S. consumers. A new survey from the American Bankers Association shows that, among adults who took part in the study, more than 80% own at least one credit card that offers rewards.

Issuers looking to attract more super prime borrowers may benefit from conducting a fresh review of their rewards programs to determine whether they’re generous enough to motivate cardholders to spend more.

Credit card issuers seeking to court the subprime market, while avoiding taking on unnecessary risk, can consider offering secured credit cards. And programs that report cardholder payment history to credit bureaus, allowing people to improve their credit profile over time, may also appeal to borrowers in the subprime segment.