NEW YORK, Feb 19 (Reuters) - Robust demand from subprime customers spurred growth in U.S. unsecured loans last year with their combined balances surging 10% to a new high of $276 ​billion, according to TransUnion's ( TRU ) Credit Industry Insights ‌Report.

    Some 26.4 million consumers carried those loans as of end-December, up from ⁠24.5 million a year earlier.

"As interest rates began to fall, ⁠many consumers are consolidating their credit card balances ‌into unsecured loans," ‌said Michele Raneri, vice president and head of U.S. research and consulting at ​TransUnion.

    Lower-income consumers are also ‌using these loans as a stopgap measure to deal with higher costs of living that have not ​been followed by similar raises ​in wages, ‌she added.

Credit card issuers have increased lending to lower-income consumers, with total balances rising 4% last year to $1.15 trillion. ⁠But they have reduced initial credit limits to deal with ⁠the risk, the report said. Delinquency rates have been slowly rising over the last quarters.

SLOWER GROWTH

TransUnion ( TRU ) forecasts slower growth this year for the volume of new credit extended.

Raneri said the ⁠credit ‌markets are now going back to more 'normal' growth ‌levels, after strong fluctuations since the pandemic.

The credit bureau expects a ⁠5.7% rise in new unsecured loans in 2026, as well as a 4% rise in mortgages and 4.2% climb in home refinancings. 

"People that have recent mortgages taken with higher interest rates are starting to have access to refinancing and we expect that demand to grow," ​TransUnion's vice president added.

Auto loans are expected to shrink 1.5% this year, after having risen around 5% last year with consumers ​accelerating purchases to avoid the ‌impact of import tariffs.