The number of borrowers with excellent credit scores increased to nearly 41 percent in the third quarter, but the number of high-risk subprime borrowers was also up, credit reporting agency TransUnion reported on Nov. 3.
The number of super prime borrowers—low-risk consumers with great credit scores—increased by 3.8 percent, or approximately 16 million additional consumers, from 2019 figures, TransUnion said in its latest credit insights report. However, those gains were countered by a greater number of consumers falling into the subprime category—borrowers who pose the most risk of credit default.
According to the Consumer Financial Protection Bureau, subprime borrowers have credit scores ranging between 580 and 619, with near-prime borrowers holding scores ranging between 620 and 659. Super-prime borrowers have credit scores of 720 or higher….