Origination Report: Consumer Unsecured, September 2024

The Consumer Unsecured market has experienced fluctuating origination trends this year, with strong performance in January and February, alternating gains and declines through the summer, and a notable rebound in September, though consistent recovery has yet to materialize despite improved credit performance.

Quick Insights

• Record High Spreads: The difference between Credit Card APRs and Consumer Unsecured loan rates has reached a new record high of 7.5%. Now is arguably the time market participants should be aggressive in targeting credit card borrowers, as refinancing credit card debt into unsecured personal loans could save U.S. households over $80 billion annually.

• Origination Trends: Despite some volatility this year, September saw a significant 42% year-over-year increase in origination volumes—marking the largest YoY gain since 2018.

• Tightening Credit Standards: Lenders continue to tighten standards, with Top Grade loans representing a significant 72% of total originations in September.