# Consumers Get Choosier About Credit

> Credit card borrowing slows as consumers prioritize debt management.
- Title: Consumers Get Choosier About Credit · Pymnts | Shortify
- Summary: Credit card borrowing slows as consumers prioritize debt management. Consumer credit growth slowed to 1.9% in August as revolving credit contracted at 4.2%…
- Keywords: consumer credit, revolving credit, nonrevolving credit, credit card, april 2025, march 2026, borrowing costs, debt management, business, finance, Consumers, Get
- Source: Pymnts — https://pymnts.com/consumer-finance/2026/consumers-get-choosier-about-credit
- Author: PYMNTS
- Published: 2026-10-07T20:38:08+00:00
- Read time: 1 min
- Topics: consumer credit, revolving credit, nonrevolving credit, credit card, april 2025, march 2026, borrowing costs, debt management, business, finance
## Consumer credit growth slows
Federal Reserve data shows consumer credit expanded at a 1.9% annual rate in August, down from July's 4.1% pace.
## Nonrevolving credit drives growth
Nonrevolving credit expanded at a 4.1% annual rate, including auto and student loans.
## Revolving credit contracts
Revolving credit contracted at a 4.2% annual rate, with balances falling to $1.352 trillion.
## Higher borrowing costs emerge
Average APR on credit accounts rose to 22.36% in the third quarter, up from 22.15%.
## Debt management shifts
53% of paycheck-to-paycheck consumers reduced nonessential spending in the past year, while 23% increased it.
## Financing costs rise
Average new-car loan rates increased to 7.54% from 7.14% for 60-month loans in the third quarter.
## Households weigh financing decisions
Higher borrowing costs push households to carefully consider each financing decision, including extending repayment periods.
## Key takeaway

Consumer credit growth slowed to 1.9% in August as revolving credit contracted at 4.2% annual rate, with higher borrowing costs pushing households to weigh financing decisions.