Global Credit Trends | Equifax Canada

Top Trends and Highlights

The Equifax Full-Year 2025 Global Credit Trends report shows the U.S. Market Pulse Index rose to 61.6 as Gen Z momentum grew 0.71%. In Canada, hidden credit fraud reached a significant $1.3 billion total and in Australia investor-backed mortgage growth outside of city centers reached 18.27%. Meanwhile, United Kingdom re-commerce buying expanded 2.6 times over last year.

Investment outside of metro areas surges in Australia

While government incentives drove an 11.2% YoY increase in first-time home buyers, rising property values in city centers pushed more investors towards more rural locales in Australia. Investor-backed mortgage account growth outside of city centers in Australia reached 18.27% in 2025, significantly outperforming the 6.62% growth seen in primary residence accounts.

The $1.3B "Hidden Fraud" Challenge in Canada

Canadian lenders face an estimated $1.3B in "hidden fraud" across credit portfolios, driven by sophisticated "long-con" schemes like auto loan stacking and "bust out" fraud. These fraudulent accounts often bypass traditional security and can lead to ineffective adjudication decisions that hamper overall portfolio growth.

The K-Shaped Divide Grows in the United States

The U.S. economy navigated the complex transition of a deepening K-shape divide in the second half of 2025. The Market Pulse Index average value for the U.S. population was stable at 61.6 in Q4’25. However, even when the Index value stays stable, there is often significant movement and "pivoting" happening within different consumer groups. The group with peak financial resilience—those with a Market Pulse Index value of 80 and higher—grew from 7.96% to 10.47% of the total population, a 32% increase since Q2’23.

Glossary of Common Terms & Sources

The Strategic Rise of Re-Commerce

In the UK, consumers are increasingly treating household goods as liquid assets, with second-hand purchasing growing 2.6x since early 2023 to stretch disposable income. This "circular economy" shift sees 5.1% of consumers now acting as sellers to generate supplemental income, helping to shield their core credit commitments from delinquency.

Overall Debt

The Equifax Full-Year 2025 Global Credit Trends reveals U.S. mortgage debt grew 3%, while Canada's auto debt rose 7.7%. In Australia, average mortgage limits climbed 8.7% to reach $550,000 as Spain reported steady personal loan growth. UK credit card balances rose 12.6%. These metrics show that while debt is rising, it remains at manageable levels in most established global credit markets.

Chart data is indexed as of Q4’19, except India which is Q4’21. The New Zealand index was rebased in Q4’21 due to account adjustments. Chart data may not include all countries represented in the chart legend

Mortgage Debt

United States: In 2025, U.S. mortgage debt continued a steady, unbroken upward trajectory, ending the year with a 3% YoY increase in Q4‘25.

Canada: Mortgage debt growth rebounded strongly in the second half of 2025, accelerating to a 2.65% YoY increase in Q4‘25.

Australia: Recent government incentives have contributed to portfolio growth, with the average limit of newly opened accounts, which rose by 8.7% in Q4‘25, now reaching approximately 550K.

Brazil: In Q4’25, credit expansion remained strong, with total consumer credit and household lending rising notably, while non-mortgage debt continued to grow rapidly and constituted a large share of household debt.

Spain: Mortgage debt maintained its trend toward stability. Q4’25 showed a slight recovery in new balances as improved credit conditions and stable interest rates encouraged home acquisition activity.

India: Mortgage debt rebounded strongly in 2H’25, driven by sustained demand for home ownership.

Non-Mortgage Debt

United States: Following a minor dip in Q1’25, the U.S. non-mortgage debt index resumed a steady, gradual climb throughout the rest of 2025, maintaining its overall long-term growth trend.

Canada: Total non-mortgage consumer debt climbed to $698B, marking a 4.5% YoY increase. The increase is mainly driven by credit card debt (4%) and auto debt (7.7%). Furthermore, average non-mortgage debt per consumer rose to $22,377, up by 2.0% YoY.

United Kingdom: The gradual long term increasing trend in credit card balances continued into Q4’25, demonstrating the strong demand and supply in the market. Total credit card debt is now 12.6% above pre-pandemic levels.

Spain: Total non-mortgage debt continued its gradual upward trajectory, closing the year with a consistent YoY increase. This growth was primarily supported by a recovery in consumer credit and personal loans, reflecting stronger household confidence heading into 2026.

Argentina: Throughout the second half of 2025, debt levels maintained a downward trend across credit cards as well as both secured and unsecured loans.

Debt: Money borrowed by consumers at a point in time. Refers to amortized limit or outstanding balance depending on data collected from each region, except Spain which reports just defaulted assets because the Spanish Bureau manages negative data only.

Non-Mortgage: Includes Buy Now Pay Later, credit cards, installment loans, personal loans and automobile loans. Availability and coverage will vary by region.

Demand

Canadian credit demand slowed 4.5% year over year, but the Equifax Full-Year 2025 Global Credit Trends shows Australian mortgage demand reached a high of 12.3% and New Zealand inquiry volumes increased 17.2% In South America, Argentina saw a 10% decline in inquiries. These statistics highlight how consumers navigate the current economic landscape depending on their specific regional economic conditions and interest rates.

North America

Canada: Overall demand for new credit has slowed, with consumer inquiries falling across most major non-mortgage credit products. This broad-based decline in credit-seeking activity — particularly in bank and credit card inquiries — reflects a growing caution among consumers navigating the current economic landscape.

South America

Argentina: A continued decrease in demand, caused by a decline in consumption recorded in June.

Ecuador: Non-mortgage inquiries increased 1.2% compared to Q1’25, trending towards the levels of the prior year.

Brazil: In Q2'25, credit demand has moderated compared to the previous quarter. While credit growth remains positive, the pace has slowed, a trend that began in 2H’24. This is a result of a tight monetary policy environment and a more cautious approach from lenders.

Europe

Spain: Credit demand increased in 1H’25, particularly in home acquisition loans, thanks to lower interest rates, favorable expectations in the housing market, and greater consumer confidence.

Oceania & Asia

Australia: Mortgage inquiries posting their strongest year-on-year growth since 2021 (+12.3%) driven by major government incentives for first home buyers. New credit card accounts rose during Q4‘25, driven by younger generations aged between 18 to 25.

New Zealand: Mortgage inquiry volumes surged 17.2% YoY in Q4‘25. However, the more subdued growth in active accounts suggests that this spike is being driven by increased comparison shopping and lender churn. Personal loan and credit card inquiries each saw YoY decline of around 1.0%.

India: Demand for gold and auto loans is increasing with the Compound Annual Growth Rate (CAGR) at approximately 40%.

Credit Cards

U.S. card utilization dropped 300 basis points to 20.9% per the Equifax Full-Year 2025 Global Credit Trends. Canada saw utilization fall to 22.8%, its lowest level since 2023, while Brazil’s revolving rates hit 400% and Argentina’s utilization levels remained stable through the second half of 2025. These movements suggest that cardholders are becoming more disciplined in their spending and repayment habits across these major international credit markets.

Card Utilization

United States: U.S. credit card utilization remained remarkably flat just above 20% through 2025, slowing in the first half of the year and down 30 bps YoY to 20.9% by Q4’25.

Canada: Credit card utilization fell to 22.8% by the end of 2025, reaching its lowest level since Q2’23. This was driven by below average seasonal holiday period spending combined with rising credit limits.

Argentina: The decline in credit card balances is linked to the stagnation of the exchange rate between the U.S. Dollar and the Argentine Peso, alongside a monthly inflation rate of 2.8%. Utilization levels remained stable throughout the second half of 2025.

Ecuador: Credit card utilization remains stable, supported by steady debt and limits.

India: Credit cards within the open market segment declined through the end of 2025, resulting in both lower acquisitions and also lower limits on new acquisitions.

Card Delinquency

United States: In 2025, U.S. credit card 90+ delinquencies experienced a sharp spike in Q4’25 after remaining relatively flat (near late-2024 levels) for the first half of the year. This sudden year-end surge pushed the Q4'25 number to 1.86%, the highest since reaching the post-pandemic peak of 1.92% in Q4'24.

Canada: Younger consumers, specifically late Millennials and early Gen Z, are the primary drivers behind a continued rise in credit card delinquencies, pushing total 90+ day dollar delinquency rates up by 10.7% YoY and 2.6% QoQ.

Brazil: Credit card interest rates, particularly for revolving credit, remained at extremely elevated levels throughout 2025. According to Central Bank data, average revolving credit rates stayed above 400% annually by the year-end. These conditions continued to constrain borrowers repayment capacity, sustaining pressure on household finances and contributing to persistently high delinquency levels.

Australia: General delinquency rates have softened versus previous quarter, yet credit card risks are climbing. While late delinquencies (90+) saw only a fractional rise in account numbers, the financial value of these delinquencies grew by 9.4% YoY.

Delinquencies

U.S. mortgage delinquency reached 0.80%, while Canada saw 1.4 million people miss payments. Equifax Full-Year 2025 Global Credit Trends report shows Australia's delinquency value grew 6.8% to $403,000 and New Zealand defaults fell 2 basis points. Identifying regional pockets of risk helps to mitigate potential losses effectively while maintaining a healthy and profitable global portfolio.

North America

United States: Mortgage climbed steadily throughout 2025, increasing from 0.68% to 0.80% by Q4‘25. Compared to 2024, personal loans followed a similar fluctuating pattern throughout 2025, albeit at slightly lower rates and closed out 2025 at 118.8, compared to 119.1 in Q4‘24.

Canada: While consumer credit performance shows year-over-year improvement, it remains under pressure with delinquencies rising steadily throughout the current year. In Q4‘25, more than 1.5 million Canadians missed a credit payment — a number that was 30.7K lower YoY, but still 31.5K higher QoQ.

South America

Argentina: The rise in delinquency is due to recurring late payments, a symptom of underlying issues related to wage stagnation and the ongoing inflation.

Ecuador: Delinquency rates remain relatively stable, with a subtle decline across different products.

Brazil: The overall delinquency rate should remain stable for the rest of 2025, based on a resilient labor market and continued high interest rates, which pressure borrowers, but also encourage a more cautious approach to new debt.

Europe

United Kingdom: Following a mixed picture at the start of the year, delinquency rates have since stabilized. This welcome development suggests the market is finding its footing, as consumers continue to adapt to the financial climate and resume the positive trajectory observed at the end of 2024.

Oceania & Asia

Australia: Despite a quarterly decline in delinquencies, financial exposure is growing. 90+ delinquencies are flat in volume but up 6.8% in value compared to Q4‘24, a clear sign that credit stress is migrating to larger loan balances.

New Zealand: Late-stage mortgage delinquencies have turned a corner and are now in a slow decline. As of Q4‘25, delinquencies are down 2bps sequentially and 3bps YoY, confirming that the previous upward trend has peaked. All other consumer products are slowly improving as well.

India: Overall industry delinquencies are stable except lower ticket size. Credit cards continue to be the highest risk segment, mortgages are showing a gradual but notable rise in stress.

Delinquency: The delinquency rate refers to the percentage of loans that are 90 or more days past due.