In its latest press release dated January 30, 2026, Fair Isaac Corporation (NYSE: FICO) has unveiled critical insights from its UK Credit Card Market Report for November 2025. The findings reveal a worrying trend of financial stress among consumers as they entered the holiday season, exacerbated by the lowest payment rates recorded since 2021 alongside a rise in overlimit credit card usage.

2. Key Findings

Spending Patterns

According to FICO’s analysis, average credit card spending saw a month-over-month increase of 2.6%, reaching £785. However, this figure represents a notable decline of 2.4% compared to the same month last year, suggesting that while consumers were spending more than in October, they were still feeling the pinch of tighter household budgets as the Christmas shopping season approached.

Balances and Payments

The report highlights a concerning trend in credit card balances and payment rates:

Average Active Balances: These increased to £1,915, marking a 0.8% rise month-over-month and a 5% increase year-on-year.

Payment Rates: In November 2025, consumers paid off only 33.4% of their balances, a decrease of 2.8% from October and down 7.4% when compared to November 2024. This represents the lowest payment rate since 2021, indicating heightened financial distress among consumers.

Delinquency Rates

The report also sheds light on the growing number of customers struggling with their credit card payments:

Overlimit Accounts: The number of credit card accounts exceeding their limits surged by 6.4% month-over-month and 5.9% year-on-year, underscoring a troubling trend of increased credit utilization amid financial strain.

Missed Payments: The data reveals that the average balances for customers who missed payments have risen across all categories, suggesting that those who are defaulting are doing so with larger debt loads than in previous years. This complicates recovery efforts for lenders.

Cash Withdrawals

Interestingly, the report indicates a significant decline in the percentage of customers utilizing credit cards for cash withdrawals, with a drop of 12.3% from the previous month and 15.2% year-on-year. This decline could signal a shift in consumer behavior as individuals may be more cautious about incurring additional debt.

3. Implications for Lenders

FICO's analysis emphasizes the need for lenders to adopt enhanced monitoring and proactive outreach strategies. As financial pressures mount, it is crucial for risk and collections teams to identify early warning signs of payment distress among consumers. This proactive approach aligns with the principles of the Consumer Duty, ensuring that lenders do not inadvertently set customers up for failure.

Trends in Delinquency

The report presents a mixed picture regarding delinquency rates. While there has been an improvement in early-stage delinquency (accounts with one missed payment), later-stage delinquency has seen deterioration. This suggests that while some consumers are managing to stay current, the overall environment remains precarious.

4. Conclusion

The FICO UK Credit Card Market Report for November 2025 paints a concerning picture of consumer finances as the holiday season approached. With rising balances, declining payment rates, and increasing overlimit usage, the financial landscape appears fraught with challenges. Lenders are urged to adapt their strategies to manage risk effectively and support consumers in navigating these turbulent economic waters.

As we move into 2026, the focus will be on recovery and sustainable financial practices, particularly as consumers begin to tackle their holiday spending. The data provided by FICO underscores the critical need for vigilance and adaptability in an evolving credit landscape.

Original press release