FICO UK Credit Card Market Report: December 2025

Core Insights - The FICO UK Credit Card Market Report for December 2025 indicates that average credit card balances have reached the highest level since FICO began tracking this data, reflecting ongoing financial pressures on consumers [1] - There is a notable increase in the number of customers missing payments, with a month-on-month rise of 6.4% for those missing one payment and a 3.7% increase for those missing three payments [1] - The average active balance rose to £1,950, marking a 1.7% increase from November and a 4.8% increase year-on-year, highlighting affordability challenges for UK consumers [1] Spending and Payment Trends - Average credit card spending increased by 5.6% from November to December, reaching £830, although this figure is 3.5% lower than December 2024 [1] - The percentage of overall balance paid stabilized at 33.4%, which is a slight increase of 0.1% from November but a significant decrease of 6.8% year-on-year [1] - The average credit limit rose to £5,930, reflecting a 0.2% month-on-month increase and a 2.4% year-on-year increase [1] Customer Payment Behavior - The report indicates that 1.4% of accounts had one missed payment, a month-on-month increase of 6.4% and a year-on-year decrease of 4.3% [1] - Accounts with two missed payments accounted for 0.3%, showing a month-on-month decrease of 1.2% but a year-on-year increase of 3.1% [1] - The percentage of accounts with three missed payments rose to 0.2%, with a month-on-month increase of 3.7% and a year-on-year increase of 4.9% [1] Financial Stress Indicators - The persistent rise in average balances and low payment rates suggest continued financial stress for consumers, with expectations of increased payment rates in January as consumers focus on settling holiday spending [1] - The report emphasizes the need for risk teams to enhance monitoring of payment patterns and implement proactive intervention strategies in response to potential payment stress in early 2026 [1]