Both subprime and super prime loans are on the rise, signs of a K-shaped economy that is a ‘prescription for real trouble’

A woman with red, curly hair stands outside and types her credit card information into her phone. (Credit: Getty Images)

The share of consumers taking out the riskiest form of loans has reached its highest peak this decade, a sign of growing financial stress for many Americans.

The share of consumers taking on subprime loans accounted for 14.4% of borrowers in 2025’s third quarter, up from 13.9% from the same period in 2024 and the highest since 2019, according to a TransUnion report released Monday, which analyzes consumer credit data. About 25% of the U.S. population has a FICO credit score below 660, meaning they are subprime, according to Apollo chief economist Torsten Sløk, citing data from the Federal Reserve Bank of St. Louis.