FICO’s latest credit card data analysis for September 2025 indicates increasing financial pressure on UK households, with a notable rise in credit card delinquencies, particularly for long-term cardholders with accumulated debt. The analysis, derived from the FICO® Benchmark Reporting Service and client reports generated by the FICO® TRIAD® Customer Manager solution, which is used by approximately 80% of UK card issuers, highlights a challenging financial environment following the Autumn Budget.
September recorded the most significant year-on-year decline in spending in many months, falling 3.8% compared to September 2024, to an average of £805. Despite a slight increase in August spending, this September figure suggests subdued consumer confidence. Simultaneously, average active balances increased by 4.5% year-on-year to £1,915, continuing a steady upward trend observed since May 2025. This rise in balances is partly attributed to a 6.5% year-on-year fall in the percentage of total balance paid, indicating ongoing struggles for customers to reduce their debt.
Further illustrating household financial strain, the percentage of customers missing three payments rose by 3.7% month-on-month and 1.7% compared to September 2024, reaching 0.21% of accounts. The average balance for these three-missed-payment accounts was £3,300, a 4.7% increase year-on-year. While accounts with one and two missed payments saw slight month-on-month decreases, the increase in deeper delinquency suggests some customers are facing more severe financial difficulties.
Notably, veteran cardholders—those who have held their credit cards for five years or more—exhibit the highest delinquent balances for customers missing three payments. This group, often having higher average credit limits due to their longer tenure, shows a delinquent balance twice as high when compared to their overall balance. This pattern suggests a persistent challenge for a segment of long-term customers in managing and reducing their outstanding debt.
Other key trends for September 2025 include average credit limits rising 2.5% year-on-year to £5,900, average overlimit spend increasing 3.4% year-on-year to £90, and cash withdrawals on credit cards seeing a 1.2% month-on-month increase. Given these trends, FICO advises risk teams to focus on veteran customers, tailoring collections conversations to provide specialized support, as many in this group may require more targeted assistance.
