Consumer credit growth accelerated in the third quarter of 2026, with both revolving and nonrevolving credit increasing at their fastest quarterly rates since 2022. Total outstanding consumer credit reached $5.22 trillion, continuing an upward trend that has strengthened over the past year. The acceleration comes amid elevated borrowing costs, although interest rates on both auto loans and credit cards continue to edge lower.
According to the Federal Reserve’s G.19 Consumer Credit Report, total outstanding U.S. consumer credit reached $5.22 trillion in the third quarter of 2026. This marked a 4.21% increase at a seasonally adjusted annual rate (SAAR) from the second quarter, the highest quarterly increase since 2022. Compared to a year ago, total outstanding credit increased 3.01%, the highest growth rate in three years.
Nonrevolving Credit
Nonrevolving credit, which is primarily made up of student and auto loans (the G.19 report excludes mortgage loans), reached $3.86 trillion (SA) in the third quarter of 2026. This marks a 4.22% increase (SAAR) from the previous quarter, the highest quarterly increase since 2022. Additionally, nonrevolving credit rose 2.57% compared to one year ago, continuing the upward trend over the last five quarters.
Student loans make up the largest share of nonrevolving credit, accounting for 49% of the total. In the third quarter of 2026, outstanding student loan credit reached $1.88 trillion (NSA), up 2.81% from a year earlier.
The other large component of nonrevolving credit is auto loans. Auto loans reached a level of $1.59 trillion (NSA), showing a year-over-year increase of 1.89%, the largest increase in the last ten quarters. Auto loan rates for a 60-month new car stood at 7.54% (NSA) for the third quarter of 2026, 10 basis points lower than a year ago. Auto loan rates have continued to decline year-over-year for the last eight quarters but remain higher than pre-pandemic levels.
Revolving Credit
Revolving credit, which is primarily made up of credit card balances, rose to $1.37 trillion (SA) in the third quarter of 2026. This represents a 4.21% increase (SAAR) from the previous quarter and a 4.25% increase year-over-year.
Although credit card rates have hovered near historic highs since Q4 2022, they have shown modest year-over-year declines over the past seven quarters. The average credit card rate held by commercial banks (NSA) stood at 21.19% in the third quarter of 2026, a drop of 20 basis points from a year earlier.
