Credit Card Balances Barely Rose. So Why Did Debt Surge?

Americans’ average credit card balance barely changed over the past year. So how did the nation pile on another $66 billion in card debt?

The average balance rose just 0.6%, from $6,618 in March 2025 to $6,659 in March 2026, according to a new Experian report.

Taken on its own, that number makes it look as though consumers have been keeping their card debt in check. After all, consumer prices rose 3.4% during the 12 months ending in July 2026, according to the Bureau of Labor Statistics. The periods do not match exactly, but average card balances still grew much more slowly than prices.

Flat Balances, Surging Debt

Source: Experian, March 2025–March 2026

Perhaps consumers are reining in how much they charge. Or they may be spreading purchases across credit cards, debit cards, buy now, pay later services, and other payment methods. Experian’s data does not answer that question.

The rest of the report, however, gives readers reason not to make too much of the nearly flat average.

Average FICO scores fell in most states, including many where credit card balances decreased. The only states where scores did not drop were Delaware, Idaho, Maine, Nevada, New Hampshire, Vermont, Washington, and Wisconsin. Scores in those eight states remained unchanged.

The declines may reflect a situation in which “consumers have broadly faced more adversity when it comes to managing their credit, whether by using too much of their available credit limits or missing credit card payments altogether,” Experian said.

Then there is total credit card debt. It rose 5.4% year over year, a $66 billion increase.

That may sound difficult to square with the 0.6% increase in average balances. The number of credit card accounts grew much faster than the average balance, rising 4.4% to 636.6 million in March 2026. That growth may have come from existing cardholders opening more cards, new consumers entering the market, or both.

Higher prices could also be leading consumers to use credit more often. Food cost 3% more in June 2026 than it did a year earlier, according to the U.S. Department of Agriculture. But Experian’s data does not establish why consumers opened more accounts or relied on their cards.

Members of Generation Z still carry lower average credit card balances than Millennials, members of Generation X, and Baby Boomers, Experian found.

Their balances are growing faster, though. Gen Z adults, whom Experian defines as ages 18 to 29, saw their average balance rise 2.5% from 2025 to 2026. No other generation recorded a larger increase.

Part of that growth could come from younger consumers getting their first credit cards. But being new to the credit market does not necessarily mean starting with a basic card.

The Wall Street Journal recently reported that members of Gen Z are showing more interest in premium rewards cards, including cards with high annual fees and extensive travel benefits.

Total credit card debt rose by $66 billion even as the average balance increased just 0.6%.

That is likely encouraging for issuers hoping to attract younger customers and keep them for years.

Lisa Kalhans, EVP of U.S. Consumer Proprietary Products, Rewards Programs, and Benefits at American Express, told the Journal that Gen Z customers at Amex have better credit performance than members of Gen X and Baby Boomers across all lenders. She added that the company primarily targets Gen Z consumers with the strongest credit scores.

As more members of Gen Z use credit cards, their borrowing and repayment habits will have a larger effect on the market.

For now, Experian’s findings show the limits of looking at average balances alone. That figure barely changed over the past year. Total debt and the number of accounts did not. And with average credit scores falling across most of the country, some consumers appear to be having a harder time managing the debt they already carry.