The UK credit market saw a surge in activity in the final quarter of 2025, with credit card limit increases and unsecured loan originations hitting new highs, according to the latest Equifax UK Affordability Barometer, which tracks consumer credit trends across major lending categories.

Equifax UK data for the fourth quarter of 2025 reveals a highly active period for credit card limit management, with the volume of limit increases rising significantly. Full-year volumes for 2025 were up 14% compared to 2024, indicating strong consumer demand for higher credit ceilings and favourable lender responses. This flurry of activity comes as total outstanding UK credit card debt now exceeds £79 billion.

The unsecured loan market also experienced a significant uptick, with originations passing previous peaks in late 2025. This growth was primarily driven by a surge in retail-linked financing during the end of year shopping seasons, including Black Friday and the festive period. The trend also closely aligned with the high-volume use of point-of-sale credit and instalment options for major retail events and new tech launches, such as Prime Day, Black Friday and the release of the new iPhone.

Despite the growth in consumer credit, repayment behaviours have remained resilient. The proportion of credit cards making only the minimum monthly repayment held steady, below 11%, throughout 2025. However, the proportion of the total balance that people are paying off each month saw a modest dip in the second half of the year, suggesting that some households are beginning to feel the pressure of managing higher debt loads.

Paul Heywood, Chief Data & Analytics Officer at Equifax UK, said: “The final quarter of 2025 was a very active period for the UK credit market. We saw borrowing in key consumer credit areas hit new post-Covid peaks, particularly in the credit card and unsecured loan space, fueled by seasonal spending and suggesting growing consumer confidence to use credit as a tool to manage their finances.

“It is encouraging that the data shows a story of continued consumer resilience, with repayment behaviours holding up, but we should not ignore the early signs of strain. The dip in payment-to-balance ratios suggests that affordability pressures are building for some, and it is critical that consumers continue to have access to the right tools, support and solutions to make informed decisions so they can try to maintain good credit health.”