Consumer Credit Growth Slows as Households Shift Strategy
Federal Reserve data released April 7 reveals a significant shift in how Americans are borrowing. Total consumer credit grew at a 2.2% annual rate in February, but the composition tells a more cautious story. Revolving credit, primarily credit cards, expanded at just 0.6% annually, down sharply from 2.3% the previous month. This marks a clear pullback from the elevated card usage seen throughout 2025. Meanwhile, nonrevolving credit including auto loans and personal loans accelerated to 2.8%, suggesting households are deliberately reserving borrowing for planned, larger purchases rather than discretionary spending. With credit card APRs holding near 21% and consumer sentiment softening, Americans appear to be managing debt more strategically.
