The average credit card debt per borrower has climbed to £2,920 – according to the Consumer Credit Report 2025 from TransUnion, a global information and insights company.

With two-thirds (67%) of consumers feeling financially comfortable and 43% optimistic about their household finances over the next 12 months – up from 26% in 2022 – demand for credit is growing. Since 2022, the average credit card balance per borrower has grown by 15%.

James O’Donnell, Director of Research & Consulting at TransUnion in the UK, said: “We’re seeing encouraging signs of financial resilience and renewed consumer confidence, despite the economic challenges faced over the last few years. With the uplift in consumer optimism and the increase in credit demand, competition is increasing and lenders should leverage data and analytics to personalise credit offerings, deepen consumer trust, and drive innovation. Through a data-driven approach, lenders can build a more inclusive and resilient credit ecosystem for the future.”

The latest survey data reveals consumers are increasingly using credit to manage everyday spending and lifestyle expenses. The top uses for credit are groceries (31%) and retail (29%) alongside discretionary expenses, including dining out (24%), holidays (23%), and entertainment (19%).

While almost half (45%) prefer to use credit cards for short-term borrowing, the rapid expansion of Buy Now, Pay Later (BNPL) in the UK has led to this credit product now being used by 12% of consumers. The most common purchases using BNPL include discretionary spending like tech (35%), household appliances (32%), and furniture (26%). However, some consumers are spreading the cost of everyday essentials, such as groceries (10%), suggesting a reliance on short-term liquidity rather than convenience.

With competition intensifying within the credit market, customer loyalty has weakened. A third (33%) have switched lenders to secure better rates, and 60% of consumers seeking new credit have shopped around for new providers. However, service remains key: one in 10 (10%) value customer experience over rates, and 8% prefer to stick to a brand they already hold accounts with.

As consumer credit demand grows, so is credit awareness and education. Nearly two in five (39%) check their credit report at least once a month, most commonly to try to improve their credit score (38%), ensure accuracy (38%), and explore credit offers they might qualify for (17%).