FICO UK Credit Card Market Report: January 2026

Core Insights - The analysis of credit card data for January 2026 indicates persistent financial pressures as customers reduce spending and focus on paying credit card bills, with high missed payments continuing from 2025 [1][4] Spending Trends - Spending fell by 9.4% month-on-month to an average of £755, which is 1.8% lower than January 2025, indicating ongoing financial pressures [6] - The percentage of overall balances paid improved slightly to 33.9%, which is 1.4% higher month-on-month but 6.7% lower than January 2025 [6] Payment and Balance Dynamics - There was a 4.8% year-on-year increase in average balances, demonstrating that affordability challenges from 2025 have persisted into 2026 [2][4] - The number of credit card accounts with two missed payments increased by 14.3% month-on-month, suggesting a potential acceleration of financial stress among vulnerable customer segments [4] Credit Limit and Missed Payments - Accounts exceeding their credit limit increased by 6% month-on-month and 6.2% year-on-year, further evidencing persistent financial pressures [6] - The number of customers missing one, two, and three payments increased month-on-month, with average balances of these accounts being higher than the previous year [6]