Using financing activity running through the Versatile Credit platform, we analyzed performance across these holidays to identify the trends merchants should be watching as the remainder of the year unfolds.

The Story of Summer 2026

Consumer financing activity remained strong compared to last summer, but the profile of today’s financing customer continued to evolve. The biggest shifts weren’t in volume, they were in who applied, who received approvals, and which lenders those approvals came from.

Three trends defined consumer financing this summer:

• Older consumers are financing more frequently.

• Higher-income shoppers continue to outpace lower-income shoppers.

• More customers are finding approvals through a broader mix of lenders.

Key Takeaways

Younger shoppers became more cautious while older consumers remained confident

• The number of applicants under 40 declined by more than 7%.

• Applications from consumers over 40 increased by more than 5%.

Why It Matters

Consumers aren’t responding to today’s economy in the same way. Older shoppers continue to demonstrate more confidence in financing larger purchases, while younger shoppers remain more cautious with large-ticket, discretionary spending.

Higher-income shoppers continue to outpace everyone else

Applicants earning under $100,000 Application volume declined approximately 5%

Applicants earning over $100,000 Application volume increased roughly 15%

Why It Matters

Higher-income consumers are increasingly comfortable using financing as a strategic payment tool and are leveraging terms and promotional financing to preserve their cash flow, maintain liquidity, or take advantage of more favorable offers.

Meanwhile, consumers earning under $100,000 continue to show greater caution with discretionary spending, reflecting the continued pressure that inflation and higher everyday expenses are placing on their budgets.

Financing continues to be valuable across all income levels, but the motivations for using financing are increasingly different depending on the customer. Successful credit strategies should account for both value conscious shoppers seeking affordability and higher-income consumers seeking flexibility.

More approvals are coming from more lenders

• Prime lender concentration declined 5%.

• Near-prime approvals increased 3%.

• Sub-prime approvals increased 2%.

• 35 – 40% of lower-income approvals now come from non-prime lenders.

Why It Matters

Customers aren’t becoming unfinanceable, they’re just finding more success with financing products specifically designed for their credit profile and situation, rather than relying solely on traditional prime lending.

This reinforces the growing importance of offering financing options that span the full credit spectrum, ensuring that customers have access to providers that best align with their financial situation and purchasing needs.

How Merchants Can Respond

These trends reinforce the reality that consumer financing is becoming an increasingly important strategic tool for retailers. As customer demographics, income levels, and credit behavior continue to evolve, merchants that adapt their financing strategy will be better positioned to convert more shoppers into buyers.

Know Your Customers Tracking applicant demographics, income ranges, approval trends, and lender utilization. Understanding who applies and who ultimately gets approved, helps retailers adjust marketing, merchandising, and credit strategies before changing consumer behavior impacts sales.	Build A Full Spectrum Credit Strategy No two customers have the same financial profile; your financing program shouldn’t treat them like they do. A successful credit strategy offers products across the full credit spectrum, ensuring every qualified shopper has access to financing designed for their needs.
Make Financing Part of the Customer Experience Customers expect financing to be part of the shopping experience, not just an afterthought at checkout. Promote financing early through advertising, digital marketing, and conversations with sales associates. Soft-credit prequalification also helps reduce hesitation by allowing shoppers to explore financing options before committing to a purchase.	Keep it Simple Offering more financing options shouldn’t create more work. The most successful financing programs make multiple lenders feel like one seamless, simple experience. A unified application enables customers to explore multiple financing opportunities while giving employees confidence that every customer is being matched with the financing options that best fit their needs.

Ready for What’s Next?

The financing customer is changing. The lenders driving approvals are changing. The retailers that succeed will be those whose credit strategies evolve alongside these trends.

Whether your goal is increasing approvals, improving the customer experience, or building a credit strategy that serves every qualified customer, Versatile Credit provides the technology, lender network, and insights to help your business succeed.

With one application, access to a broad network of lenders and providers, and an intelligent credit strategy, you can confidently connect more customers with financing that fits their needs, without adding complexity for your team.

One Application. Multiple Lenders. More ways to say yes.

Learn more at www.versatilecredit.com or reach out to our team at contact@versatilecredit.com