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With Affirm reporting loans to TransUnion, eagerness to mirror traditional credit providers may build from within the fintech space鈥攔ather than from outside pressures.

The bigger picture: Many Gen Zers have found themselves in credit card debt. Around 1 in 6 Gen Z credit cardholders have utilized more than 90% of their credit limit, per the Federal Reserve Bank of New York. This is a higher share than any other generation. And high credit card APRs have made it harder to dig themselves out of debt.

Meanwhile, many small lenders struggle to enter SBA lending鈥攐r offer less than 20 SBA loans per year鈥攄ue to high costs and expertise requirements. Phoenix isn鈥檛 the only SBA loan service provider available鈥擶indsor Advantage and Prudent Lenders provide SBA loan services to smaller FIs.

Most Gen Zers adequately manage their credit card debt. As of Q3 2024, adults ages 18 to 29 held only 7.2% of total consumer credit card debt, per Federal Reserve Bank of New York鈥檚 Center for Microeconomic Data. Wild debt sprees among these adults are kept in check by low median credit limits鈥攐nly $4,500 as of Q1 2024. And almost 85% of adults ages 18 to 29 utilize less than 90% of their limits.

The news: General Motors (GM) has reapplied to establish an industrial bank, aiming to accept deposits and offer loans directly to consumers and dealerships, per The Washington Post. GM seeks a stable and cost-effective funding source for its financing operations, potentially becoming more competitive in the auto industry.

Banks should continue promoting consumer credit products (like credit cards and loans) while emphasizing financial education on how to prepare for economic downturns. In light of the potential for rising consumer defaults, banks should consider more flexible repayment options for loans and credit products. These could include payment deferrals, reduced minimum payments, or loan restructuring.

Consumers can track BNPL loans on their credit reports daily with a free Experian membership. Affirm said BNPL reporting may affect consumers鈥� credit scores in the future as bureaus develop new credit scoring models. It also plans to report loan information to other credit reporting agencies.

Strong interest income, network revenues, and servicing income contributed to these gains. 0% APR loans: Affirm is working with merchants on different 0% APR 鈥減romotional finance鈥� deals for its longer-term loans. If it can entice prime borrowers and develop customer loyalty, the company believes it will be worth it for its long-term strategy.

While some consumers鈥� finances are improving, other consumers are falling deeper into debt

Credit card debt. Grace Broadbent (08:16):. And credit card debts are building and building and building. Rob Rubin (08:18):.

Delinquencies across car loans, mortgages, and other credit products are up among consumers with incomes of $150,000 or more, per credit company VantageScore. Delinquencies for high-income consumers increased 103% from January 2023 to March 2025.

For example, they argued that since BNPL loans typically require payments every two weeks, it鈥檚 鈥渋mpossible to send periodic statements for all 濒辞补苍蝉鈥� at least 14 days in advance of the next payment, as the rule required. The bigger picture: The CFPB dropping this rule lines up with the Trump administration鈥檚 larger efforts to dismantle the Biden-era CFPB鈥檚 actions and the agency itself.

Higher net interest income, revolving loan balances, card spending, and card fees fueled growth, the company said. US consumer network volume increased 7% YoY in Q1. International consumer card volume grew 14% YoY. Overall loan and card member receivables increased 7% YoY. And net card fees increased 18% YoY.

The US weekly average mortgage rate for 30-year fixed loans as of February 20 was 6.85%, which is roughly in line with the average both a week and year before. Home sales plummeted in January. Sales of newly built homes fell 10.5% month over month and 1.1% YoY in January, per the US Census Bureau.

BNPL loans have also become more accessible for consumers. BNPL providers approved 79% of applications in 2022, up from 56% in 2019, per a January 2025 Consumer Financial Protection Bureau (CFPB) report. This owes to providers making more counteroffers instead of declining applications outright, as well as approving more loans to subprime and deep subprime FICO score consumers.

Prior to the federal judge pausing these firings, CFPB leadership announced the agency will deprioritize issues like medical debt, P2P lending, student loans, consumer data protections, and digital payments.

Millennials: This generation is hovering around the average age of homebuying, though persistently high mortgage rates are forcing many potential customers to postpone this life goal. Feeling behind, millennials want affordable solutions that can still let them put their roots down.

The share of outstanding US consumer debt in delinquency climbed to its highest level in nearly five years in Q4, per a Federal Reserve Bank of New York report. The spike is a clear warning sign that many consumers are struggling financially due to elevated interest rates that make debt harder to manage and repay.

And because mortgages generally require homeowners to acquire home insurance, the number of new homeowners in these regions will decline over time.

On one hand, 96.5% of credit card balances were current as of Q3 2024鈥攁 healthier measure than just prior to the pandemic, per the Federal Reserve Bank of New York. But concerns are growing for the 56% of credit card users who revolve their credit card debt, per October 2024 CivicScience data, as higher interest rates have made it harder for them to pay off their balances.

With fintechs angling to expand into new arenas like auto loans and mortgages, this rule鈥檚 reversal stands to stymy the free flow of information. Our take: Whatever the CFPB decides, one thing is certain鈥攃hange will likely be slow. DOGE cut both funding and manpower at the bureau, which slows any kind of action at the federal level.

Young professionals with student loans are worried about job stability and how they鈥檒l make payments if they get laid off. Small-business owners facing higher costs due to tariffs are struggling with cash flow, which will make it harder to keep operations running smoothly.

Banks could also promote low-interest personal loans or flexible credit options tailored for Gen Zers, providing young adults with the means to cover expenses independently. Additionally, educational resources on budgeting, saving, and responsible credit use could empower Gen Z to become financially self-sufficient.

While the Fed鈥檚 rate doesn鈥檛 directly control mortgage rates, consumers expected mortgage rates to become more affordable after the flurry of rate cuts last year, per Fortune. What happened? These two rates have historically tended to move in unison, despite their indirect link. But mortgage rates are more closely tied to the 10-year Treasury bond yields than to the Federal Reserve鈥檚 short-term rate.