FICO UK Credit Card Market Report: May 2026

Key Terms

delinquency financial

Delinquency occurs when a borrower fails to make a required payment on a loan or credit account by the due date. It signals that the borrower is behind on their commitments, which can increase the risk of losing access to credit and may lead to additional fees or penalties. For investors, higher delinquency rates can indicate potential problems in the lending or financial system, affecting the value of related investments.

pre-delinquency intervention strategies financial

Actions and programs a lender or loan servicer uses to identify borrowers who are at risk of missing payments and to stop that from happening, such as early outreach, flexible repayment plans, temporary forbearance, payment reminders, and credit counseling. Like a preventive maintenance routine for loans, these steps aim to preserve cash flow and reduce the chance of defaults, which affects expected credit losses, revenue stability, and regulatory or reputational outcomes for investors.

overlimit accounts financial

Overlimit accounts are credit accounts where the outstanding balance has gone past the preset credit limit set by the lender. For investors, a rising number or higher value of overlimit accounts can signal greater consumer stress and higher short-term fee or interest income but also higher risk of missed payments and future losses, similar to a car repeatedly pushed beyond its safe speed creating more wear and the chance of a breakdown.

active balances financial

Active balances are the funds or account totals that are currently being used, moved, or transacted rather than sitting idle. Think of them as money in a wallet that’s being spent or exchanged frequently versus cash tucked away in a sock drawer; for investors they signal the level of customer engagement, liquidity and potential fee or interest income a financial firm is generating, and they can affect risk and cash flow metrics.

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Post-Easter spending and repayments follow seasonal patterns, but delinquency data suggests most vulnerable customers are falling into further financial difficulty 

LONDON--(BUSINESS WIRE)-- The latest credit card data analysis by global analytics software leader FICO (NYSE: FICO) highlights a typical decline in spending and increase in payment rates following the Easter period. However, year-on-year analysis shows delinquency rates for accounts with three missed payments have increased 17.1%. With seasonal spending expected to increase over the summer months, in part due to rising fuel prices, FICO urges heightened monitoring of late payments and pre-delinquency intervention strategies by lenders.

Highlights

• Average spending decreased by 3.0% month-on-month to £790 and remained virtually flat year-on-year
• Average active balances decreased 0.3% month-on-month to £1,945, but remain 4.3% higher year-on-year
• The percentage of overall balance paid increased by 4.7% over the previous month, but at 34.1% it remained 4.1% lower than in 2025
• The number and balances of accounts with one, two and three missed payments remain higher than May 2025
• After the sharp increase seen in April, overlimit accounts decreased by 5.7% in May 2026, to 1.3%, although this remains 1.6% higher than May 2025

FICO Comment:

Following typical post-Easter seasonal patterns and mirroring the decline seen in May 2025, average spend decreased by 3.0% between April and May 2026, to £790. Year-on-year spending remained virtually flat, representing a continued improvement from the persistent declines seen through most of 2025 and suggesting some stabilisation in consumer spending behaviour.

The average active balance decreased marginally in May, offering a modest reprieve from April's return to record highs. However, balances remained 4.3% higher on the previous year, maintaining the structural elevation that has characterised the market throughout 2025 and into 2026.

Looking at missed payments data, May saw a mixed picture across delinquency categories, with a notable improvement in accounts with two missed payments. However, this was offset by continued deterioration for accounts with one and three missed payments. All three delinquency categories remain higher year-on-year, continuing the concerning trend that emerged from the second half of 2025, especially for accounts missing two and three payments.

While average delinquent balances have increased across all three categories, FICO analysis suggests balances for late payments are staying relatively flat when compared with the increases in overall balances. Accounts with one missed payment have seen a marginal 0.5% increase year-on-year; accounts with two missed payments are broadly flat and accounts with three missed payments have actually seen a 3.1% drop, compared to average balance. This suggests the most severely delinquent customers are carrying proportionally lower balances relative to the overall portfolio than at this time last year.

However, with the significant year-on-year increase in accounts with three missed payments, and the likelihood of increased spending over the summer months, risk teams should maintain heightened monitoring of delinquency progression and ensure that pre-delinquency intervention strategies are designed to address the higher balance levels now characteristic of customers in financial difficulty.

Key Trend Indicators – UK Cards May 2026

Metric	Amount	Month-on-Month Change	Year-on-Year Change
Average UK Credit Card Spend	£790	-3.0%	-0.1%
Average Card Balance	£1,945	-0.3%	+4.3%
Percentage of Payments to Balance	34.1%	+4.7%	-4.1%
Accounts with One Missed Payment	1.5%	+8.9%	+3.4%
Accounts with Two Missed Payments	0.3%	-14.9%	+9.4%
Accounts with Three Missed Payments	0.3%	+3.7%	+17.1%
Average Credit Limit	£5,975	+0.2%	+2.1%
Average Overlimit Spend	£100	+2.1%	+4.3%
Cash Sales as a % of Total Sales	0.8%	0.9%	-2.2%

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/20260727156033/en/

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

Source: FICO