Balances return to record high as spend increases and repayments fall, suggesting inflation and energy prices are hitting hard

New credit card data analysis by global analytics software leader FICO (NYSE:FICO) has found that spending rose in April, following typical Easter behaviour. However, we are seeing a strong trend downwards with the percentage of balance being paid, and this is driving up overall balances. The percentage of balance paid fell for the third month in a row and late payments increased year-on-year, balances returned to record high levels. This marks a notable shift from the improvements seen in 2025 for the percentage of customers missing payments. In April, there was the biggest increase in consumers missing three payments. Household budgets are clearly showing the strain from persistent inflation and the current fallout from volatile global energy prices.

Highlights

Spending rose 10% month-on-month, reaching an average of £815
Average active balances increased 1.3% month-on-month to £1,950, matching the record high reached in December 2025
The percentage of overall balance paid decreased 1.4% month-on-month to 32.6%, continuing the downward trend that has persisted since 2025 and approaching the pre-pandemic average of 30%
The percentage of customers missing two payments rose 1.9% month-on-month and 16.3% year-on-year
The percentage of customers missing three payments also increased month-on-month by 6.2% and 17.3% year-on-year – the most significant annual deterioration seen across any delinquency category
Balances on accounts with missed payments were higher across all delinquency categories than the same month last year
Overlimit accounts increased sharply, by 14.1% month-on-month and 4.6% year-on-year

FICO Comment:

April 2026 presents a mixed but broadly concerning picture for lenders. With consumer spending rising, but repayments falling, more customers have fallen into arrears and gone over their credit limit.

The monthly growth in spending does not go far enough to rise above 2025 levels, suggesting that any improvements are likely to be seasonal rather than a sign of stronger financial health. And with average balances now matching the record high from December 2025, it is clear that consumers are carrying more debt in 2026.

Despite the slight month-on-month improvement in the number of accounts with one missed payment after a spike in March, the figure remains 4.9% higher year on year. And those customers who are missing payments for the first time are doing so with a higher level of debt than a year ago, with average balance for accounts with one missed payment rising by 6.7% year-on-year to £2,480.

The picture for late payments is particularly concerning for those missing multiple payments. The percentage of accounts with two and three missed payments has grown more sharply. And average balances for two and three missed payments are 0.5% and 3.4% higher than 2025, at £2,855 and £3,325, respectively.

The other signal of weakened affordability is the number of overlimit accounts, which increased sharply by 14.1% month-on-month, and 4.6% year-on-year. Average overlimit spending of £95 represents a 5.9% drop on March but remains 5.5% higher than the previous year.

With seasonal spending increases likely to put further pressure on already stretched affordability levels, risk managers should prioritise proactive pre-delinquency intervention strategies and enhanced early warning monitoring ahead of the summer.

Key Trend Indicators – UK Cards April 2026

Metric	Amount	Month-on-Month Change	Year-on-Year Change
Average UK Credit Card Spend	£815	+10.0%	-1.3%
Average Card Balance	£1,950	+1.3%	+4.1%
Percentage of Payments to Balance	32.6%	-1.4%	-4.1%
Accounts with One Missed Payment	1.4%	-19.5%	+4.9%
Accounts with Two Missed Payments	0.4%	+1.9%	+16.3%
Accounts with Three Missed Payments	0.2%	+6.2%	+17.3%
Average Credit Limit	£5,960	+0.2%	+2.0%
Average Overlimit Spend	£95	-5.9%	+5.5%
Cash Sales as a % of Total Sales	0.8%	+2.4%	-0.9%
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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