Private Credit Moves Into Consumer Debt as FinTech Firm Bilt Seeks Nonbank Financing

Private credit, traditionally centered on corporate lending, has increasingly moved into consumer debt such as credit cards and auto loans in pursuit of higher yields. Such holdings have increased by $150 billion since 2019, showing that nonbank capital has become an important source of consumer-finance funding and expanded its influence over the household debt market.

Rent-rewards FinTech company Bilt turned to the private credit market for funding after ending its credit card partnership with Wells Fargo. Under its latest arrangement, institutions including Blue Owl Capital will take on about $1.2 billion in credit card balances. The deal illustrates how private credit has accelerated its expansion into consumer debt since 2019 and increasingly replaced traditional banks as a funding source.