FICO UK Credit Card Market Report: January 2026

Analysis of credit card data for January 2026 by global analytics software leader FICO shows the typical post-Christmas reduction in spending as customers prioritised payments after the festive break. However, with spending lower year-on-year and increases in missed payments, the financial pressures that were a feature of the UK economy for the majority of 2025 have continued into the new year, requiring risk and collections teams to remain vigilant.

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Highlights

• Spending fell by 9.4% month-on-month to an average of £755; 1.8% lower than January 2025 this is a clear indication of continued financial pressures
• After reaching a record high in December 2025, balances only fell slightly in January 2026, by 0.6%, remaining 4.8% higher year-on-year
• 33.9% of overall balances were paid, which is 1.4% higher month-on-month but 6.7% lower than January 2025
• The number of customers missing one, two and three payments increased month-on-month, and average balances of these accounts were higher than the previous year
• Accounts over their credit limit increased 6% month-on-month and 6.2% year-on-year, providing further evidence of persistent financial pressures

FICO Comment:

As is typical of January, spend and balances reduced, with customers prioritising payments following seasonal spending. The percentage of overall balance paid showed some improvement, as it typically does in the new year. However, as it remains 6.7% lower than the previous year, it appears that consumers may be more financially stretched than last year.

The combination of this decline in payment rates alongside a 4.8% year-on-year increase in average balances demonstrates that the affordability challenges that defined 2025 have persisted into 2026. Risk and collections teams should focus on proactive intervention strategies, particularly given the 14.3% monthly increase in the number of credit card accounts with two missed payments, which suggests potential acceleration of financial stress among vulnerable customer segments.

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.

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