EDGE, the cashflow bureau, released its Q1 2026 Emerging Credit Insights report. The extensive data and insights in the index are derived from live underwriting decisions with an end-to-end view of borrower cashflow. The company analyzed millions of credit applications from nonprime borrowers processed on behalf of financial institutions and lenders with consumer-permissioned cashflow data. Notably, EDGE’s research reveals that indicators of financial stress have increased across all lower risk tiers over the past year. Near prime applicants saw the highest increase in observed high-risk behaviors at 39% year over year. By comparison, subprime applicants’ high-risk behaviors increased 31% year over year and deep subprime by 19%.
With the widening gap between traditional credit scores and consumers’ true financial health, lenders need a more complete picture of both risk and opportunities to best serve consumers who are often misrepresented by traditional credit scores. The Emerging Credit Insights report presents inquiries processed through EDGE by lenders in the EDGE network from Q1 2025 through Q1 2026 and showcases facts and implications new to the public dialogue. For instance, Buy Now Pay Later (BNPL) utilization continues to rise across all nonprime risk tiers, with nearly half of applicants utilizing BNPL at some point during the period. 63% of near prime applicants accessed BNPL credit in the most recent quarter, which compares to 48% for subprime and 42% for deep subprime. Data such as this reinforces the need for a complete picture of consumers’ financial capacities for lending decisions.
“The Emerging Credit Insights report is a novel alternative lens for risk assessment and decisioning strategies because it’s based on a near real-time snapshot of a large cross-section of American consumers,” said Brian Reshefsky, CEO of EDGE. “Because EDGE was built by and for lenders, we understand the importance of insights grounded in real-world lending decisions and are best positioned to address the underwriting needs of financial institutions, fintech lenders, and credit card issuers. This report sets the standard for nonprime borrower insights.”
Unlike panel-based or self-reported data, the observations in the Emerging Credit Insights report are based on real-time data from the moment of application. The behaviors of three tiers of borrowers – near prime, subprime, and deep subprime – are evaluated against factors including income, balances, financial obligations, and high-risk behaviors.
The methodology for Emerging Credit Insights is based on credit applications processed through the EDGE network, with each observation established from consumer-permissioned cashflow data accessed at the time of application and throughout the life of the loan. The network includes more than 60 lenders and financial institutions. Applicants were segmented into the three risk tiers based on EDGE Score, a cashflow-based credit score, with calibration around the same expected probability of default for FICO® and VantageScore® risk tiers.
“Being both a cashflow bureau and Consumer Reporting Agency, EDGE can help lenders better understand and address the needs of underserved cohorts with actionable cashflow insights at the individual level,” said Reshefsky. “This inaugural Emerging Credit Insights report complements our offering for day-to-day decisioning with a nationwide view to better inform credit strategies and portfolio optimization.”
To download the Q1 2026 Emerging Credit Insights report or learn more, visit http://edgescore.com/ECI/2026Q1.
About EDGE
EDGE is the cashflow bureau. EDGE delivers decision-ready insight into borrowers’ financial health, helping lenders strengthen underwriting, improve member relationships, and support more inclusive lending. Developed through real-world lending experience and machine learning, EDGE allows lenders to approve applicants with thin or no credit history like recent immigrants, young adults, and other underserved populations. As a consumer reporting agency (CRA) built on cashflow data, EDGE’s risk attributes and scores are the only cashflow underwriting tools proven through profitable loan performance at scale.
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