US credit card capacity is expanding at a record pace: Total credit card limits reached a record 5.3 trillion in Q3 2025, according to the NY Fed data. At the same time, outstanding credit card balances rose +67 billion YoY, to 1.2 trillion, an all-time high. This leaves a record 4.1 trillion in available unused credit. Credit limits have surged +1.5 trillion since 2020, far outpacing the +430 billion increase in credit card debt over the same period. This comes as banks are aggressively raising credit limits and offering cashback and rewards programs to encourage more card usage. The credit card debt crisis is expanding.(The Kobeissi Letter)