Personal Loans Surge as Consumers Seek Relief from High Credit Card Rates
Event summary
- 38% of U.S. consumers with a credit file now have at least one personal loan, up steadily since 2017.
- Personal loan balances rose 7.4% from 2024 to 2025, reaching $207.1 billion.
- Lender hard inquiries for personal loans increased 16% in 2025, indicating rising consumer interest.
- Experian's Marketplace offers personalized loan comparisons based on credit profiles.
The big picture
The rise in personal loans reflects a broader trend of consumers seeking cost-effective alternatives to high-interest credit cards amid persistent inflation. Experian's data highlights a strategic shift toward fixed-rate loans as a tool for budgeting and debt management, positioning the company to capitalize on growing demand for transparent financial guidance. The $207.1 billion in personal loan balances underscores the scale of this market shift.
What we're watching
- Debt Refinancing Trends
- How the shift from credit cards to personal loans will affect consumer debt composition and lender strategies.
- Marketplace Competition
- Whether Experian's Marketplace can sustain growth amid increasing competition from fintech lenders.
- Regulatory Scrutiny
- The pace at which regulators may examine personal loan practices amid rising consumer debt levels.
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