Americans' credit card balances climbed to a record $1.29 trillion in the third quarter, increasing $22 billion from the previous three months and $52 billion from a year earlier, according to a Federal Reserve Bank of New York report released Tuesday.

The increase was part of a broader rise in household borrowing. Total U.S. household debt grew by $334 billion, or 1.8%, to $19.1 trillion. Mortgage balances accounted for most of the increase, rising $257 billion to $13.4 trillion. Home equity lines of credit climbed $23 billion to $481 billion, their largest quarterly increase since 2005.

Auto loan balances increased $21 billion to $1.73 trillion, while student loan debt rose $5 billion to $1.66 trillion.

New York Fed economic research adviser Donghoon Lee said household debt increased moderately, driven largely by mortgage and home equity borrowing. He noted that housing-related delinquencies have risen but that overall credit quality in those loans remains strong.

The report found that 5% of outstanding household debt was in some stage of delinquency during the quarter, up 0.3 percentage points from the previous quarter. Credit card delinquency trends showed some improvement, with the share of balances newly 90 days or more past due falling to 6.87%, compared with 7.05% a year earlier.

New York Fed researchers said lower-income borrowers and consumers with weaker credit histories are experiencing greater financial strain. Credit card issuers expanded lending to those groups during the pandemic, and some of those accounts are now showing higher levels of distress. Researchers cited rising prices and borrowing costs, along with pay increases that have not kept pace with inflation for lower-income workers.

Separate figures from TransUnion showed average credit card debt per borrower reached $6,678 in the third quarter, up from $6,523 a year earlier. The company's balance-level rate of serious delinquency declined slightly, while the share of borrowers with accounts at least 90 days past due increased.

The latest figures follow a second-quarter credit card balance of $1.26 trillion, which had already approached the previous record of $1.28 trillion set in the fourth quarter of 2025. The New York Fed has tracked household debt data since 1999.