Balances show signs of stabilising as payment rates trend down, with missed payment balance levels remaining higher than in 2025

The latest credit card data analysis by global analytics software leader FICO (NYSE:FICO) shows the typical recovery in spending following January's post-Christmas decline. However, the structural affordability challenges that defined 2025 remain, with payment rates continuing to trend down and balance levels for accounts with missed payments higher than this time last year. These may increase going forward due to rising energy prices.

Key Findings:

Spending rose by 5.1% month-on-month to an average of £790
Average active balances remained stable month-on-month at £1,940, but were 4.5% higher than February 2025
The percentage of the overall balance paid followed typical seasonal patterns, decreasing 1.53% on the previous month to 33.4%
Customers missing one and two payments dropped respectively 12% and 8.9% month-on-month
The percentage of customers missing three payments increased 2% month-on-month and 8% year-on-year
The average balance of missed payments increased across all categories and continues to be significantly higher than in 2025

FICO comment

February 2026 data show tentative signs of stabilisation across the UK economy, with the narrowing of the year-on-year payment rate gap and a halt in the year-on-year decline in spending seen since early 2025. However, persistently elevated balance levels for accounts with missed payments suggest that underlying affordability pressures continue.

While February saw month-on-month improvements for accounts missing one and two payments, there was a 2% increase in accounts missing three payments, underlining the challenge for individuals already facing financial difficulties.

Fewer customers missed one payment in February than in February 2025, but more missed two and three payments, continuing the concerning trend that emerged in the second half of 2025 of those already in debt being unable to recover. Another indicator of financial stress is the fact that balances for all accounts with missed payments increased month-on-month and year-on-year.

The percentage of overall balance paid fell to 33.4%, which is 4.3% lower than the previous year. However, this represents an encouraging narrowing of the year-on-year gap compared to recent months, where declines of 6-7% were commonplace. This reduction follows typical seasonal patterns and is expected to continue decreasing until April.

Average credit limits remained flat month-on-month at £5,940 and are 2.4% higher year-on-year. While overlimit accounts decreased by 3.7% on the previous month, they remain 6.5% higher than February 2025. The average overlimit amount increased by 2.1% month-on-month to £95, representing a 5.5% annual increase.

Risk teams should maintain heightened monitoring into the spring months, when seasonal spending increases and higher energy costs may put renewed pressure on customers already operating at stretched affordability levels. Proactive pre-delinquency intervention and tailored collections strategies for higher-balance accounts remain critical priorities.

Key Trend Indicators – UK Cards February 2026

Metric	Amount	Month-on-Month Change	Year-on-Year Change
Average UK Credit Card Spend	£790	+5.1%	0.0%
Average Card Balance	£1,940	+0.2%	+4.5%
Percentage of Payments to Balance	33.4%	-1.53%	-4.3%
Accounts with One Missed Payment	1.3%	-12.0%	-3.6%
Accounts with Two Missed Payments	0.3%	-8.9%	+2.5%
Accounts with Three Missed Payments	0.2%	+2.0%	+8.0%
Average Credit Limit	£5,940	0.0%	+2.4%
Average Overlimit Spend	£95	+2.1%	+5.5%
Cash Sales as a % of Total Sales	0.8%	-1.9%	-2.0%

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

FICO (NYSE:FICO) powers decisions that help people and businesses around the world prosper. Founded in 1956, the company is a pioneer in the use of predictive analytics and data science to improve operational decisions. FICO holds more than 200 US and foreign patents on technologies that increase profitability, customer satisfaction and growth for businesses in financial services, insurance, telecommunications, health care, retail and many other industries. Using FICO solutions, businesses in more than 80 countries do everything from protecting 4 billion payment cards from fraud, to improving financial inclusion, to increasing supply chain resiliency. The FICO® Score, used by 90% of top US lenders, is the standard measure of consumer credit risk in the US and has been made available in over 40 other countries, improving risk management, credit access and transparency. Learn more at www.fico.com.

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FICO UK Credit Card Market Report: February 2026