FICO UK Credit Card Market Report: December 2025

Continued financial pressures evident as balances reach highest level since FICO records began

LONDON--(BUSINESS WIRE)-- FICO (NYSE: FICO):

Analysis of credit card data for December 2025 by global analytics software leader FICO shows typical seasonal trends for increased spending. However, balances reached the highest level seen since FICO began analysing credit card data, while payments remained stable. With the start of the new year typically seeing consumers facing the reality of Christmas spending, there’s the potential for increased financial stress at the start of the new year.

Highlights

• Spending rose by 5.6% from November to December, reaching an average of £830, however it was 3.5% lower than December 2024 continuing the pattern seen since March
• Average active balances rose to the highest level since FICO records began, up 1.7% on November and 4.8 year-on-year to £1,950
• The percentage of overall balance paid stabilised at 33.4% in December – 0.1% higher than November but 6.8% lower year-on-year
• Following seasonal trends customers missing one payment increased 6.4% month-on-month. The percentage missing three payments increased 3.7% month-on-month and 4.9% year-on-year
• Average balances for customers with missed payments remain significantly higher compared to 2024

FICO Comment:

For the second month, low payment rates (33.4%) and high pre-Christmas spending led to rising average balances. These trends signal continued financial stress for consumers, with balances continuing their persistent upward trend seen in recent years. It is expected that payment rates will increase in January as consumers traditionally focus on paying off Christmas spend in the New Year.

December typically sees the number of customers missing one payment increase and 2025 was no exception, as consumers prioritised new spending over repaying balances. With the higher cost of living, average balances for delinquent customers remain significantly elevated compared to 2024. With more customers having missed three payments, and balances for this group having risen compared to the previous month and previous year, the most financially stressed are facing continued challenges.

The record-high average active balance of £1,950, combined with payment rates remaining low, highlights the affordability challenges facing UK consumers. Risk teams should prepare for potential payment stress in January and February with enhanced monitoring of payment patterns and proactive intervention strategies critical.

Key Trend Indicators – UK Cards December 2025

Metric	Amount	Month-on-Month Change	Year-on-Year Change
Average UK Credit Card Spend	£830	+5.6%	-3.5%
Average Card Balance	£1,950	+1.7%	+4.8%
Percentage of Payments to Balance	33.4%	+0.1%	-6.8%
Accounts with One Missed Payment	1.4%	+6.4%	-4.3%
Accounts with Two Missed Payments	0.3%	-1.2%	+3.1%
Accounts with Three Missed Payments	0.2%	+3.7%	+4.9%
Average Credit Limit	£5,930	+0.2%	+2.4%
Average Overlimit Spend	£95	+3.3%	+2.2
Cash Sales as a % of Total Sales	0.8%	-9.7%	+5%

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.

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FICO UK PR Team

Wendy Harrison/Matthew Enderby

ficoteam@harrisonsadler.com

0208 977 9132

Source: FICO