• New cards with promotional terms hit 50% peak in March

• UK credit card growth may help economic recovery - but lenders must also monitor potential impact of increased debt, says Equifax

Appetite for UK credit cards has continued to grow this year and Brits have been in the mood for competitive offers, according to data from credit reference agency Equifax UK’s Affordability Barometer*, which tracks consumer credit trends across major lending categories including credit cards, home loans, retail finance and more. 

Credit card originations levels were elevated throughout 2024, up 19% compared to the previous year, and data from Equifax UK shows this growth has continued into 2025. After a 17% rise in the number of credit card limit increases during 2024, the trend has also remained at an elevated level during 2025. 

Meanwhile, data indicates that Brits have also been in the mood for promotional offers. Following typical seasonal trends and in a competitive marketplace, Equifax data shows the proportion of new credit cards subject to promotional terms hit a peak of 50% in March 2025.

UK credit card debt passes £70bn

The figures come with outstanding UK credit card debt now in excess of £70bn, 4.3% above pre-pandemic levels. Previously, the pandemic period gave some consumers an opportunity to pay down existing debts, including on credit cards, but this trend has reversed**.

Not all debt is ‘bad’ and, if repayments are made on time, debts can also work as evidence of good financial planning and responsible borrowing. However, if not managed carefully, or if too much is borrowed and cannot be paid off, this may have a negative impact on day-to-day finances and credit health***. 

Paul Heywood, Chief Data & Analytics Officer at Equifax UK, said: “While growth in new UK credit cards may help contribute to economic recovery, lenders must also continue to monitor the potential impact associated with increased household debt. We’re five years on from the pandemic and its lockdowns, and for some consumers, the social restrictions created a chance to clear the slate on debts. But with ongoing cost of living pressures, overall debt has generally now surpassed pre-pandemic levels. This trend also outstrips wage growth over the same period and shows UK consumers increasingly see credit cards as a regular option to manage their spending and wider finances.”

To check their credit health, consumers can access their free statutory credit report online, and visit the Equifax Knowledge Centre for tips and advice on organising finances and managing debt. 



Sources:

*Based on Equifax UK bureau data to end of March 2025
**Equifax 2025 Financial Health Report
***Equifax UK Knowledge Centre – Good debt vs bad debt: what’s the difference?