#United States #San Francisco #Holiday Spending #VantageScore #CreditGauge

Holiday Spending Trends Boost Credit Card Balances

In the latest report from VantageScore, there has been a noticeable rise in average credit card balances year-over-year, driven primarily by the festive shopping season of 2025. This increase was documented in the November edition of the CreditGauge™ report, which highlights current trends in consumer credit and spending behavior.

The data reveals that the average credit card balance climbed to a new post-pandemic peak of $106,000, reflecting a 1.4% increase from the previous year. With holiday shopping prompting consumers to spend more, the average balances are indicative of a shift in consumer behavior as households navigate tighter budgets. Susan Fahy, the EVP and Chief Digital Officer at VantageScore, commented, "Consumers are accessing additional liquidity compared to last year, even as they face financial pressures from a softening labor market and persistently high prices."

Delinquency Rates on the Rise

While increased spending typically signifies buoyant economic activity, there are underlying concerns about rising delinquency rates among certain borrower segments. The report indicates that late-stage delinquencies, categorized as 90–119 Days Past Due (DPD), have increased to 0.24%, marking a 30% rise year-over-year. This points to ongoing repayment challenges faced by a segment of borrowers, adding complexity to the broader economic landscape.

Conversely, early-stage delinquencies saw a slight uptick of 0.03%, whereas mid-stage rates remained relatively unchanged. This trend underscores the bifurcation in the U.S. consumer credit economy, where some borrowers are still adhering to their financial commitments while others are finding themselves in precarious situations.

Shifts in Loan Originations

The report also highlights a significant yearly increase in personal loan and credit card originations by 0.56% and 0.34% respectively. In contrast, traditional mortgage and auto loan originations barely moved, indicating a potential shift in consumer focus towards short-term liquidity solutions over long-term financing options. There appears to be a strategic pivot among consumers who, facing economically challenging conditions, are seeking ways to manage their cash flows more efficiently through personal loans and credit cards.

Insights into Consumer Behavior

Amid these changes, it’s essential to recognize that consumers displayed a level of discipline in their credit usage despite the boost in balances and early holiday spending trends. The balance-to-loan ratio slightly decreased to 50.80%, illustrating a more stable utilization of credit. This signals that even with rising credit card balances, consumers are cautious and mitigate the risk of overextension.

In conclusion, the November 2025 CreditGauge™ report paints a complex picture of consumer credit behaviors during the holiday season. The surge in credit card balances alongside rising delinquency rates points to an economy characterized by mixed signals. The overarching narrative suggests that despite heightened spending, significant financial pressures remain for many, prompting more consumers to explore personal loans and credit options to navigate the festive season and beyond.

For readers interested in understanding deeper insights from this report, VantageScore encourages follow-up visits to their platform for additional resources and information on trends regarding consumer credit.