Large banks reported total credit card balances of $948.7 billion in the first quarter of 2026, marking a 3.2% increase from the prior year. This growth rate was slightly below the rate of inflation and less than the average annual growth of 3.8% for the entire time series. Concurrently, total credit card commitments saw a 4.2% rise over the same period. This marks the fifth consecutive quarter where the year-over-year growth in commitments outpaced balances, resulting in the lowest credit utilization rate in three years, at 19.1%.
Despite the declining utilization rate, consumer spending remained robust, with purchase volume 6.4% higher than a year earlier. The subdued growth in revolving balances, which have risen slower than inflation and are at their lowest real level since mid-2023, reflects a shift in payment behavior. The share of accounts paying their balance in full reached an all-time high in Q1 2026, while those paying minimums or partial balances decreased for seven consecutive quarters. This is likely driven by the average interest rate on general-purpose cards, currently at 24.0%, significantly higher than the historical average of 18.2% before the 2022 rate hikes.
Credit card delinquency rates continued to decline, gradually retreating from series peaks over the past two years. The proportion of outstanding balances 30+ days past due stands at 3.3%, down year-over-year for the sixth consecutive quarter. Net charge-off rates have also fallen for four consecutive quarters. However, despite these improvements, delinquency rates remain above historical norms. The dollar volume of credit card originations saw a strong 8.7% increase, reaching $105.5 billion in Q1 2026.
