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Overall consumer credit continued to expand in the fourth quarter of 2025, with growth in both nonrevolving and revolving credit. Nonrevolving credit, which includes student and auto loans, accounts for 74% of total outstanding consumer credit, while revolving credit, which includes credit card balances, makes up the remaining 26%.
Student loan and credit card balances continued to rise year-over-year, while auto loan balances declined. Although interest rates remain elevated, both credit card and auto loan rates edged slightly lower.
Total outstanding U.S. consumer credit reached $5.11 trillion for the fourth quarter of 2025, according to the Federal Reserve’s G.19 Consumer Credit Report. This is an increase of 3.04% at a seasonally adjusted annual rate (SAAR) compared to the previous quarter, and a 2.34% increase compared to last year.
Nonrevolving credit reached $3.78 trillion in Q4 2025. This marks a 2.15% increase from the previous quarter, and a 1.96% increase year over year.
Revolving credit, primarily made up of credit card balances, rose to $1.33 trillion in Q4 2025, a 5.61% increase from the previous quarter and a 3.43% increase year-over-year, both representing an acceleration compared to recent quarters.
Although credit card rates have hovered near historic highs since Q4 2022, the past five quarters have shown modest year-over-year declines. The average credit card rate held by commercial banks stood at 20.97% in the fourth quarter of 2025, a drop of 50 basis points from a year earlier.
