Global credit infrastructure is undergoing a massive generational and regulatory transformation, according to the latest Equifax 1H 2026 Global Credit Trends report. Powered by the Equifax Cloud™ and EFX.AI capabilities, the new report sheds light on shifting debt dynamics in the U.S., rising housing pressures in Canada, and crucial baseline data ahead of the UK Financial Conduct Authority’s (FCA) impending BNPL regulations.
Millennials Overtake Gen X in U.S. Debt Share
According to the report, a generational credit shift is reshaping the U.S. financial landscape. In the first half of 2026, Millennials officially surpassed Gen X to hold the largest share of U.S. debt.
- Millennials: Surged from 25.1% in January 2020 to 36.8% by May 2026, largely driven by a wave of mortgage borrowing (mortgages now make up 70% of Millennial debt).
- Gen X: Slipped from 39.2% down to 35.9%.
- Baby Boomers: Dropped significantly from 30.3% to 20.1% as older generations actively paid down debt.
- Gen Z: Emerged as the fastest-growing credit demographic, growing their share from 0.8% to 5.2%.
For lenders and fintechs, engaging with Gen Z as they build initial credit profiles presents a critical opportunity for long-term loyalty and compliance-driven credit management.
UK BNPL Teeters on the Edge of FCA Regulation
From a regulatory perspective, one of the report’s most critical insights focuses on the United Kingdom, where Buy Now, Pay Later (BNPL) is officially transitioning into formal oversight by the Financial Conduct Authority (FCA).
Using proprietary transaction data to establish a regulatory baseline ahead of enforcement, Equifax highlights how BNPL has evolved from an alternative payment method into core credit infrastructure:
- 38% of U.K. consumers utilized BNPL services in 2025.
- 45% of active users completed five or more transactions during peak months, gaining significant retail finance market share from traditional credit cards.
- Financial Inclusion vs. Risk: The data reveals a distinct generational reliance on the tool. Among 18-to-24-year-old BNPL users in 2025, 29% made no other traditional credit repayments, compared to just 15% of all BNPL users overall. This trend underscores why regulators are pressing for tighter consumer protection and uniform credit-reporting standards.
Cross-Border Pressures: Joint Mortgages and Delinquencies in Canada
The report also addresses regional pressures, noting that high housing costs in Canada are forcing younger first-time buyers under 35 in Ontario and British Columbia to take out joint mortgages with older borrowers—typically parents—at twice the rate of the rest of the country. Meanwhile, economic strain is showing in delinquency metrics, with non-mortgage delinquencies rising 27% year-over-year among Ontario mortgage holders compared to just 2% in the rest of Canada.
Empowering Lenders with AI and Cloud Tech
Designed to help lenders navigate complex macroeconomic trends—including consumer credit demand, delinquencies, and inflation—the Equifax report demonstrates the vital role of advanced RegTech and analytics. By leveraging Equifax Cloud™ and EFX.AI, financial institutions are gaining deeper visibility to make informed, faster decisions while maintaining stringent regulatory compliance.
Explore the full 1H 2026 Global Credit Trends report at equifax.com/globalcredittrends
