FICO UK Credit Card Market Report suggests risk teams must closely monitor payment rates and overlimit usage as rising inflation adds to financial pressure for consumers

According to data analysis from global analytics software leader FICO (NYSE: FICO), average active UK credit card balances exceeded £2,000 in August for the first time since records began, following three consecutive months of increases. Contributing to higher balances, payment rates dropped after a brief recovery in July, and remain lower than the same time last year. This trend, coupled with an annual increase in all levels of missed payments, highlights the importance of risk teams continuing to closely monitor for signs of financial difficulty.

Highlights

Average spending increased by 3.1% month-on-month to £840, growing 3.3% year-on-year and marking the highest annual growth rate in over a year.
The average active balance grew 1.2% month-on-month to a record £2,005 and remains up 4.8% year-on-year.
The percentage of overall balance paid fell 1.1% on the previous month, to 33.3%, and is down 3.1% year-on-year.
Average credit limits crossed £6,000 for the first time, and overlimit accounts grew 4.7% month-on-month to an average overlimit of £95. This is down -3.1% on the previous month but up 3.3% year-on-year.
The percentage of customers missing one payment fell by 7.1% month-on-month but balances for these accounts rose 5.1% year-on-year, to £2,520.
Accounts with two missed payments climbed 2.8% compared to July, but are 9.5% higher year-on-year. Annual growth for balances of these accounts slowed to 1.8%, with the average standing at £2,945.
There was a slight monthly decline of 0.7% in three missed payments, but year-on-year there was a sharp increase of 16.4%. Average balances grew 1.7% on the year, reaching £3,320.

FICO Comment:

August marked significant milestones, as average active balances passed £2,000 and credit limits exceeded £6,000 for the first time. The year-on-year shortfall in payment rates narrowed for a third consecutive month, while overlimit accounts showed year-on-year improvement. This suggests that acute affordability pressures from earlier in the year are beginning to ease slightly, despite the persistent pressure on finances that has characterised the market since early 2025. However, late payments across all three cycles remain higher than in 2025, reflecting a macroeconomic environment that continues to stretch household budgets.

UK CPI inflation rose to 3.1% in August, up from 2.9% in July, driven in part by rising food prices. With Ofgem’s energy price cap set to increase, borrowing costs are unlikely to fall significantly before winter. Meanwhile, total UK credit card debt has reached a record £82.4 billion according to the Bank of England, alongside record-high representative credit card interest rates.

Given these cost pressures, risk teams should monitor whether the recent stability in payment rates and overlimit accounts can be sustained. Although one-cycle delinquency fell sharply in August, it remains 5.1% higher year-on-year. As the primary entry point to the delinquency pipeline, and with CPI and energy costs both rising into autumn, early intervention and tailored support for this population should be prioritised before further seasonal pressure builds.

Key Trend Indicators – UK Cards August 2026

Metric	Amount	Month-on-Month Change	Year-on-Year Change
Average UK Credit Card Spend	£840	+3.1%	+3.3%
Average Card Balance	£2,005	+1.2%	+4.8%
Percentage of Payments to Balance	33.3%	-1.1%	-3.1%
Accounts with One Missed Payment	1.4%	-7.1%	+5.1%
Accounts with Two Missed Payments	0.4%	+2.8%	+9.5%
Accounts with Three Missed Payments	0.2%	-0.7%	+16.4%
Average Credit Limit	£6,010	+0.2%	+2.2%
Average Overlimit Spend	£95	-3.1%	+3.3%
Cash Sales as a % of Total Sales	0.9%	+2.2%	-4.3%
Source: FICO

These card performance figures are part of the data shared with subscribers of the FICO® Benchmark Reporting Service. The data sample comes from client reports generated by the FICO^® TRIAD^® Customer Manager solution in use by some 80% of UK card issuers. For more information on these trends, contact FICO.

About FICO

FICO (NYSE: FICO) powers decisions that help people and businesses around the world prosper. Founded in 1956, the company is a pioneer in the use of predictive analytics and data science to improve operational decisions. FICO holds more than 200 US and foreign patents on technologies that increase profitability, customer satisfaction and growth for businesses in financial services, insurance, telecommunications, health care, retail and many other industries. Using FICO solutions, businesses in more than 80 countries do everything from protecting 4 billion payment cards from fraud, to improving financial inclusion, to increasing supply chain resiliency. The FICO® Score, used by 90% of top US lenders, is the standard measure of consumer credit risk in the US and has been made available in over 40 other countries, improving risk management, credit access and transparency. Learn more at www.fico.com.

FICO and TRIAD are registered trademarks of Fair Isaac Corporation in the United States and other countries.

View source version on businesswire.com: https://www.businesswire.com/news/home/20261020683218/en/

For further press information please contact:
FICO UK PR Team
Wendy Harrison/Matthew Enderby
ficoteam@harrisonsadler.com
0208 977 9132

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