Story perspectives

Subprime Loans Surge Amid K-Shaped Economy Struggles

11/3/2025

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Summary

Story summary

Subprime loan share rose to 14.4% in Q3 2025, the highest since 2019.
About 25% of Americans have a FICO score below 660 as of 2025.
The share of super prime borrowers rose to 40.9%, widening the credit-risk split.
Federal Reserve Chair Jerome Powell described the economy as a "K-shaped economy," with high-income spending and lower-income struggle.
TransUnion reported rising delinquencies, especially on government-backed loans, underscoring risk monitoring.

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Story summary

Subprime loan share rose to 14.4% in Q3 2025, the highest since 2019.
About 25% of Americans have a FICO score below 660 as of 2025.
The share of super prime borrowers rose to 40.9%, widening the credit-risk split.
Federal Reserve Chair Jerome Powell described the economy as a "K-shaped economy," with high-income spending and lower-income struggle.
TransUnion reported rising delinquencies, especially on government-backed loans, underscoring risk monitoring.