The exchange for the debt economy
CHICAGO—In a finding one payments analyst calls “reassuring,” TransUnion’s latest Consumer Pulse survey shows that a majority of Americans remain optimistic about their household finances over the next year—despite inflation fatigue, rising borrowing costs, and ongoing wallet stress for many families.
For credit unions, Charlie Wise said, that optimism isn’t just a mood indicator; it’s a signal that consumers believe they can regain control of their financial lives—and are actively seeking credit products to help them do it.
That insight—continued consumer optimism in the face of financial strain—is the most unexpected takeaway from the new survey and sets the stage for what Wise, SVP and head of global research and consulting at TransUnion, described as an unusually bifurcated credit marketplace in 2026.
According to Wise, the Pulse data show robust demand for credit across the board—but for very different reasons.
Higher-Income, Low-Risk Consumers: Shopping for Rewards, Not Necessity
These borrowers aren’t seeking credit because they’re short on spending power, Wise pointed out.
“They’ve got plenty of limit,” Wise explained. “They want the new card, the rewards, the rich benefits that match their high spend.”
For credit unions, this group represents an opportunity—if they can compete with national issuers on rewards value, Wise said.
“If you want to get a card in wallet,” Wise said, “you need attractive rewards. These consumers have a lot of options.”
Lower-Income And Below-Prime Consumers: Turning To Credit To Fill Gaps
At the opposite end of the spectrum, Wise noted intense demand from below-prime consumers for both credit cards and personal loans.
Charlie Wise
These borrowers are not looking for a better rewards program. They’re seeking a financial bridge—especially during the holiday and tax seasons when spending spikes, Wise explained.
“These are consumers dealing with high prices,” Wise said. “They’re trying to use credit to help smooth out lumpy expenses—not out of desperation, but to buy time.”
Wise said the survey data makes one thing clear: credit unions must deepen personalization across the entire membership spectrum:
1. Use analytics and AI to spot member needs early
Credit unions, he emphasized, already excel at personal service. But advanced analytics, including AI, can help scan entire portfolios to identify:
- Members whose credit card balances are climbing
- Borrowers who would benefit from a personal loan to consolidate
- Homeowners who may need home equity lines (a “huge growth product” for credit unions recently)
2. Build more competitive, targeted card offers
- Credit unions can’t rely solely on low rates
- Rewards, balance-transfer promotions, spend-based incentives, and digital servicing are now baseline expectations
“There’s a lot of noise in consumers’ lives,” Wise said. “They need their trusted institutions—their credit unions—to tell them what they need, based on what’s going on in their financial life.”
3. Proactively reach out to members who may be reluctant to ask for help
- Some consumers feel uneasy requesting more credit—even when it could stabilize their finances
Wise said credit unions should use their deep knowledge of members to initiate those conversations.
“That’s the kind of thing that can really help them get through difficult times,” he noted.
Despite Everything, Consumers Still Believe 2026 Will Be Better
Wise ended with what he believes is the most important—and overlooked—story in TransUnion’s newest data: Most consumers say they’re optimistic about their personal finances over the next calendar year.
After years of inflation shocks and economic uncertainty, that outlook surprised even some analysts. Wise sees it differently.
“I like to think of it as reassuring,” he said. “Consumers are doing a better job getting a handle on their finances after a really challenging couple of years. In their minds, next year is looking up—and that’s good news.”
By Ray Birch
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The exchange for the debt economy