The latest credit card data analysis from global analytics software leader FICO, for September 2025, underlines the financial balancing act households have faced this year. Following the Autumn Budget, there are clear signs that cardholders with accumulated debt (three missed payments) are falling into deeper delinquency.  This is particularly pronounced for customers who have had their credit card for five years plus.

Highlights

• The most significant year-on-year decline in spending in many months was recorded for September at 3.8%
• Average active balances were 4.5% higher than September 2024 at £1,915
• The percentage of total balance paid fell 6.5% year-on-year to 34.6%
• The percentage of customers missing three payments saw a 3.7% increase month-on-month; this is also 1.7% higher than September 2024
• The average balance of three missed payments is 4.7% higher year-on-year at £3,300
• Accounts spending over their credit limit were 1.2% higher than August and 1.8% higher than September 2024
• Withdrawal of cash on credit cards continued its upward seasonal trend, increasing 1.2% on the previous month

FICO Comment:

Following an increase in August spending, September saw a slight decline to an average of £805. However, at 3.8% lower than September 2024, this was the most significant year-on-year decline FICO has identified in recent months, potentially reflecting the subdued consumer confidence seen in other economic data in the last few months.

Also illustrating the pressure on household finances, average active balances were 4.5% higher than September 2024, continuing the steady upward trend seen since May 2025. Balances remain high in part because payments to balance have been falling, indicating that customers are still struggling to pay down balances. The 1% increase in payments to balance seen in September has done little to improve the picture, remaining 6.5% lower than a year ago.

Another indicator of customers struggling to manage their credit is missed payments. Balances on accounts with missed payments remain higher than 2024 despite month-on-month decreases in the number of customers missing one or two payments. Notably there has been an increase in customers missing three payments, rising by 3.7% on the previous month and 1.7% on 2024, suggesting some customers are falling into deeper delinquency.

Veteran customers, who have had their credit card five years or more, have the highest delinquent balances for customers missing three payments. This group also has the highest average credit limit, although not unexpected as this group of customers have had their cards for longer and will probably have been offered limit increases. However, when comparing the ratio of their delinquent balance to the overall balance, the delinquent balance is twice as high.

This clearly indicates that there is a group of customers struggling to reduce their balance – and that may have been the case for some time. Risk teams should focus on this group of customers, tailoring the collections conversation accordingly as many of these customers may require more specialised support.

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.