📊 Summary of the Consumer Credit Report (October 2025)

The Consumer Credit report provides a detailed look at the trends and health of consumer borrowing in the United States. It covers both revolving credit (mainly credit cards) and nonrevolving credit (such as auto and student loans), offering insights into household financial behavior, credit availability, and potential risks to economic stability.

Key Highlights from the October 2025 Report

  1. Overall Growth in Consumer Credit 📈
    • In October 2025, total consumer credit outstanding increased at a seasonally adjusted annual rate of 2.2%.
    • This marks a moderate acceleration from the previous month, reflecting continued, but cautious, consumer borrowing.
  2. Revolving vs. Nonrevolving Credit 🔄
    • Revolving credit (primarily credit cards) rose at an annual rate of 4.9%. This is a notable uptick, suggesting consumers are relying more on credit cards, possibly due to higher living costs or constrained incomes.
    • Nonrevolving credit (auto loans, student loans, etc.) increased at a slower annual rate of 1.2%, indicating more subdued demand for big-ticket financed purchases.
  3. Outstanding Balances 💳
    • Total consumer credit outstanding reached $5,084.1 billion.
    • Of this, revolving credit accounted for $1,316.8 billion, while nonrevolving credit made up $3,767.3 billion.
  4. Trends by Credit Type 🚗🎓
    • Student Loans: Outstanding balances remained high at over $1.84 trillion. Delinquencies increased in the first half of 2025, largely due to the resumption of student loan repayments and reporting of delinquencies to credit bureaus.
    • Auto Loans: Balances were stable at around $1.56 trillion. The average maturity for used car loans remained elevated, especially for nonprime borrowers, increasing default risk. Auto loan delinquencies stayed above the historical median.
    • Credit Cards: Balances shifted slightly toward subprime borrowers. Delinquency rates, after peaking in 2024, stabilized but remained above long-term medians, especially for nonprime borrowers.
  5. Credit Quality and Delinquencies ⚠️
    • Credit card delinquencies remained flat in the first half of 2025 after reaching their highest level since 2010 in the previous year.
    • Auto loan delinquencies were above the historical median, reflecting some stress among borrowers.
    • Student loan delinquencies rose sharply with the end of pandemic-era forbearance, but this has not yet led to broader payment difficulties on other types of consumer debt.
  6. Credit Availability and Lending Standards 🏦
    • Credit remained generally available for most households, though standards were tighter than pre-pandemic norms.
    • Banks reported some easing in lending standards for credit cards and auto loans in the third quarter of 2025, but overall standards were around the median level since 2011.
    • Access to mortgage credit remained easy for high-credit-score borrowers but tighter for those with lower scores.
  7. Household Debt Service and Leverage 🏠
    • The household debt service ratio (debt payments as a share of disposable income) was little changed, indicating that most households are managing their debt loads despite higher interest rates.
    • Most household debt is at fixed rates, so the impact of recent rate hikes has been muted for existing borrowers.
  8. Economic Implications 💡
    • The stabilization of consumer credit growth, alongside elevated but steady delinquency rates, suggests that while households are under some financial pressure, there is no immediate sign of widespread distress.
    • The shift toward more borrowing by subprime consumers and the increase in delinquencies for certain loan types are areas to watch for potential risks to financial stability.

Summary

The October 2025 Consumer Credit report shows moderate growth in consumer borrowing, with revolving credit (credit cards) rising faster than nonrevolving credit (auto and student loans). Delinquency rates for credit cards and auto loans remain above historical medians, especially among nonprime borrowers, while student loan delinquencies have increased with the end of forbearance. Credit remains available, but standards are tighter than before the pandemic. Overall, U.S. households are managing their debt, but pockets of risk are emerging, particularly among lower-credit-score borrowers and in the student loan segment.

References: 

Consumer Credit, Federal Reserve

Find out how the Consumer Credit report impacts you and your business.