FICO UK Credit Card Market Report: March 2025
In This Article:
Financial pressures hitting UK households evident in drop in spend, whilst balances increase year-on-year
LONDON, June 05, 2025--(BUSINESS WIRE)--While the months after Christmas typically see spend on credit cards fall, the new data from global analytics software leader FICO for March 2025 underlines the financial pressures impacting UK households.
Following seasonal patterns, average spend was 6.8% lower than February and 3.7% down compared to March 2024. However, payments to balance also fell in March, by 1.6% month-on-month and 5.8% year-on-year, resulting in higher average balances compared to 2024. Established customers who have had their cards between one and five years, and who have missed one payment, saw the largest drop in payments to balance, which will be a concern to lenders.
Highlights
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Average credit card spending fell 6.8% month-on-month and 3.7% year-on-year
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Average balances rose by 4.9% year-on-year
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The number of customers missing one payment rose by almost a quarter (23%) compared to February 2025
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The average balance of one missed payment is 5.6% higher year-on-year
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Average balances for customers with one, two or three missed payments are higher than the same period in 2024
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The percentage of customers using credit cards for cash fell for the sixth month in a row and now stands at 2.9%, a 2.1% monthly decrease and an 8.7% annual decrease
Key Trend Indicators – UK Cards March 2025
| Metric | Amount | Month-on-Month Change | Year-on-Year Change |
| Average UK Credit Card Spend | £735 | -6.8% | -3.7% |
| Average Card Balance | £1,845 | -0.6% | +4.9% |
| Percentage of Payments to Balance | 34.3% | -1.6% | -5.8% |
| Accounts with One Missed Payment | 1.7% | +23.1% | -4.1% |
| Accounts with Two Missed Payments | 0.33% | -0.2% | -3.8% |
| Accounts with Three Missed Payments | 0.21% | +0.1% | 0 |
| Average Credit Limit | £5,830 | +0.5% | +3.1% |
| Average Overlimit Spend | £95 | +6.6% | +7.8% |
| Cash Sales as a % of Total Sales | 0.84% | +1.4% | -2.3% |
| Source: FICO | |||
FICO Comment:
With spend having decreased by 6.8% month-on-month and 3.7% year-on-year, average spend now stands at its lowest point for two years at £735. However, higher living costs have contributed to higher balances, which have increased 4.9% compared to March 2024, now standing at an average of £1,845.
The trend in missed payments will be a concern for lenders, in particular the sharp increase of 23% month-on-month for one missed payment. The average balance decreased 1% month-on-month to £2,320 but is still 5.6% higher year-on-year and is trending upwards. The percentage of customers missing two payments dropped 0.2% month-on-month and 3.8% year-on-year, while customers missing three payments has been increasing since October 2024. The average balance of two missed payments is also trending upwards. With an average of £2,875, it is 2.5% higher than February and 6.4% higher than March 2024. The average balance of three missed payments is also trending up, by 0.9% on the previous month and by 6.6% on the previous year equating to an average of £3,220.