FICO UK Credit Card Market Report: May 2026
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.
All three delinquency categories remain higher year-on-year, continuing the concerning trend that emerged from the second half of 2025.
Highlights
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
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