In the first quarter of 2026, consumer credit grew at a slightly faster pace than in years prior amid positive yet sluggish economic growth and rising inflation pressure. According to the Federal Reserve’s G.19 Consumer Credit Report, total outstanding U.S. consumer credit reached $5.14 trillion in the first quarter of 2026. This marked a 3.25% increase at a seasonally adjusted annual rate (SAAR) from the previous quarter, the strongest quarterly growth in three years. Meanwhile, year-over-year growth rose 2.63%, the highest annual increase in nine quarters.
Nonrevolving Credit
Nonrevolving credit, largely driven by student and auto loans (the G.19 report excludes mortgage loans), reached $3.80 trillion (SA) in the first quarter of 2026. This marks a 3.02% increase (SAAR) from the previous quarter, and a 2.34% increase from a year ago.
Student loan credit stood at $1.87 trillion (NSA) for the first quarter of 2026, marking a 3.34% increase from a year ago and showing a return to growth from the COVID-19 Emergency Relief.
Auto loans reached a level of $1.56 trillion (NSA), showing a year-over-year increase of just 0.37%, following two declines in the quarters prior. Auto loan rates for a 60-month new car stood at 7.52% (NSA) for the first quarter of 2026, falling 52 basis points from a year ago. Auto loan rates have continued to decline year-over-year for the last five quarters but remain at elevated levels.
Revolving Credit
Revolving credit, primarily made up of credit card balances, rose to $1.34 trillion (SA) in the first quarter of 2026. This represents a 3.88% increase (SAAR) from the previous quarter and a 3.46% 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 (NSA) stood at 21.00% in the first quarter of 2026, a drop of 37 basis points from a year earlier.
