FICO UK Credit Card Market Report: October 2024
FICO's UK Credit Card Market Report for October 2024 reveals mixed trends in consumer credit behavior. Average credit card sales dropped 5.5% month-on-month to £790, though remaining 1% higher than October 2023. Average balances decreased 0.9% to £1,815, following typical pre-Christmas patterns. Payment behavior showed an unusual trend, with the percentage of balance paid increasing marginally in September (1.3%) and October (0.3%) to 37.2%, contrary to typical seasonal patterns.
The report highlights that veteran cardholders (5+ years) show the highest delinquent balances for two or three missed payments, despite having higher credit limits. Late payment patterns have generally stabilized year-on-year, with only three-payment delinquencies showing an increase compared to October 2023.
Il Rapporto sul Mercato delle Carte di Credito nel Regno Unito di FICO per ottobre 2024 rivela tendenze miste nel comportamento del credito dei consumatori. Le vendite medie delle carte di credito sono diminuite del 5,5% rispetto al mese precedente, raggiungendo £790, sebbene siano rimaste superiori dell'1% rispetto a ottobre 2023. I saldi medi sono diminuiti dello 0,9%, arrivando a £1.815, seguendo i tipici modelli pre-natalizi. Il comportamento di pagamento ha mostrato una tendenza insolita, con la percentuale di saldo pagato che è leggermente aumentata a settembre (1,3%) e ottobre (0,3%) fino al 37,2%, contrariamente ai modelli stagionali abituali.
Il rapporto evidenzia che i titolari di carta esperti (5+ anni) mostrano i saldi inadempienti più elevati per due o tre pagamenti mancati, nonostante abbiano limiti di credito più alti. I modelli di pagamento in ritardo si sono generalmente stabilizzati anno dopo anno, con solo le inadempienze per tre pagamenti che mostrano un aumento rispetto a ottobre 2023.
El Informe de FICO sobre el Mercado de Tarjetas de Crédito del Reino Unido para octubre de 2024 revela tendencias mixtas en el comportamiento del crédito de los consumidores. Las ventas promedio de tarjetas de crédito cayeron un 5.5% mes a mes a £790, aunque se mantuvieron un 1% más altas que en octubre de 2023. Los saldos promedio disminuyeron un 0.9% a £1,815, siguiendo los patrones típicos previos a la Navidad. El comportamiento de pago mostró una tendencia inusual, con el porcentaje de saldo pagado aumentando marginalmente en septiembre (1.3%) y octubre (0.3%) hasta el 37.2%, en contraste con los patrones estacionales típicos.
El informe destaca que los titulares de tarjeta veteranos (5+ años) muestran los saldos morosos más altos por dos o tres pagos faltantes, a pesar de tener límites de crédito más altos. Los patrones de pagos atrasados se han estabilizado en general año tras año, con solo las morosidades por tres pagos mostrando un aumento en comparación con octubre de 2023.
FICO의 영국 신용 카드 시장 보고서는 2024년 10월 소비자 신용 행동의 혼합된 경향을 드러냅니다. 평균 신용 카드 판매가 전월 대비 5.5% 감소하여 £790에 도달했지만, 2023년 10월보다 1% 높게 유지되었습니다. 평균 잔액은 전형적인 크리스마스 전 패턴을 따라 0.9% 감소하여 £1,815에 이릅니다. 지불 행동에서 비정상적인 경향이 나타났습니다, 9월(1.3%)과 10월(0.3%)에 잔액 지불 비율이 약간 증가하여 37.2%에 도달하였습니다. 이는 일반적인 계절적 패턴과는 반대입니다.
보고서는 5년 이상의 경력을 가진 카드 보유자들이 더 높은 신용 한도를 가지면서도 두 번 또는 세 번의 미납으로 인해 가장 높은 연체 잔액을 보이고 있음을 강조합니다. 연체된 지불 패턴은 전년 대비 일반적으로 안정세를 보였으며, 단지 세 번의 지불이 연체된 경우만이 2023년 10월과 비교하여 증가했습니다.
Le Rapport de FICO sur le Marché des Cartes de Crédit au Royaume-Uni pour octobre 2024 révèle des tendances mixtes dans le comportement de crédit des consommateurs. Les ventes moyennes de cartes de crédit ont chuté de 5,5 % d'un mois à l'autre, atteignant 790 £, bien qu'elles demeurent supérieures de 1 % par rapport à octobre 2023. Les soldes moyens ont diminué de 0,9 % pour s'établir à 1 815 £, suivant les motifs typiques pré-noël. Le comportement de paiement a montré une tendance inhabituelle, avec le pourcentage de solde payé augmentant légèrement en septembre (1,3 %) et octobre (0,3 %) atteignant 37,2 %, contrairement aux tendances saisonnières habituelles.
Le rapport souligne que les titulaires de carte expérimentés (plus de 5 ans) montrent les soldes en souffrance les plus élevés pour deux ou trois paiements manquants, malgré des limites de crédit plus élevées. Les motifs de paiement en retard se sont généralement stabilisés d'une année sur l'autre, seules les créances impayées de trois paiements montrant une augmentation par rapport à octobre 2023.
Der FICO Bericht zum Kreditkartenmarkt im Vereinigten Königreich für Oktober 2024 zeigt gemischte Trends im Kreditverhalten der Verbraucher. Die durchschnittlichen Kreditkartenzahlungen sanken im Monatsvergleich um 5,5% auf £790, liegen jedoch 1% über dem Niveau von Oktober 2023. Die durchschnittlichen Salden verringerten sich um 0,9% auf £1.815 und folgen typischen Mustern vor Weihnachten. Das Zahlungsverhalten zeigte einen ungewöhnlichen Trend, mit einem leichten Anstieg des anteiligen bezahlten Saldos im September (1,3%) und Oktober (0,3%) auf 37,2%, im Gegensatz zu den üblichen saisonalen Mustern.
Der Bericht hebt hervor, dass erfahrene Karteninhaber (5+ Jahre) die höchsten säumigen Salden bei zwei oder drei versäumten Zahlungen aufweisen, obwohl sie höhere Kreditlimits haben. Die Zahlungsverzögerungsmuster haben sich im Jahresvergleich im Allgemeinen stabilisiert, wobei nur die Dreizahlungsverzögerungen im Vergleich zu Oktober 2023 zugenommen haben.
- Average credit card spend up 1% year-over-year
- Credit limits increased 2.8% year-over-year to £5,765
- Accounts with one and two missed payments decreased year-over-year by 8.6% and 4.9% respectively
- Average card balance increased 5.2% year-over-year to £1,815
- Percentage of payments to balance decreased 1.5% year-over-year
- Veteran cardholders showing highest delinquent balances despite higher credit limits
- Three-payment delinquencies increased 0.3% year-over-year
Insights
The October 2024 UK credit card data reveals nuanced consumer behavior patterns amidst economic pressures. The marginal increase in payment-to-balance ratios (37.2%) against seasonal norms signals consumer resilience, though still lagging behind 2023 levels. The
Most concerning is the veteran cardholder segment showing higher delinquency rates despite lower active balances, indicating potential financial stress among traditionally stable customers. The
FICO's market share in UK credit card analytics (
The divergence between veteran cardholders' credit limits and their delinquency rates suggests potential risk management opportunities. While overall delinquency trends remain stable, the specific challenges in the veteran segment could impact portfolio performance. This data supports a cautious outlook on consumer credit quality heading into 2025.
Payments to balance unexpectedly increase – albeit marginally – as spend and balances fall in typical seasonal patterns
In contrast, the percentage of balance paid went against the usual trend of dropping from August until the end of the year, with marginal month-on-month increases seen in September and October. In September, there was a
Highlights
-
Sales dropped
5.5% month on month to an average of£790 in October but have increased by1% on the previous year -
After a
0.5% increase in September, average balances experienced the usual pre-Christmas drop – down0.9% to an average of£1,815 in October - Bucking the usual annual trend, there were marginal increases in the percentage of balance paid in September and October
- The pattern of late payments has also stabilised year-on-year, with an increase only in the percentage of cardholders missing three payments compared to October 2023
-
The percentage of customers using cash on credit cards dropped in October to
3.45% , having peaked in September at3.54%
FICO Comment
Compared to all vintages of credit card holders, veteran customers (who have had their credit card for five years or more) have the highest delinquent balances for those missing two or three payments. This group also has the highest average credit limit. Whilst it is expected that this group of customers may have higher credit limits as they have had their cards for longer and will probably have been offered limit increases at some point, their average active balance is lower than for the new or established groups of card holders.
Given the continued financial pressures affecting households, risk managers should review both limit management and collections contact strategies, with a particular focus on the veteran customer group. These customers may be missing payments for the first time and may need more tailored support.
For habitual late payers, they may have become accustomed to the same collections contact methods each time they miss payments. Shuffling when treatment is actioned for these customers, and incorporating different communications channels by adding in rules looking at ‘number of times missed one / two / three payments last 12 months’, could help improve collection performance on higher balances.
Key Trend Indicators – |
|||
Metric |
Amount |
Month-on-Month
|
Year-on-Year
|
Average |
|
- |
+ |
Average Card Balance |
|
- |
+ |
Percentage of Payments to Balance |
|
+ |
- |
Accounts with One Missed Payment |
|
+ |
- |
Accounts with Two Missed Payments |
|
+ |
- |
Accounts with Three Missed Payments |
|
- |
|
Average Credit Limit |
|
+ |
+ |
Average Overlimit Spend |
|
+ |
+ |
Cash Sales as a % of Total Sales |
|
- |
- |
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
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
FICO and TRIAD are registered trademarks of Fair Isaac Corporation in the
View source version on businesswire.com: https://www.businesswire.com/news/home/20241218301439/en/
For further press information please contact:
FICO
Wendy Harrison/Parm Heer
ficoteam@harrisonsadler.com
0208 977 9132
Source: FICO
FAQ
What was FICO's reported average UK credit card spend in October 2024?
How did UK credit card payment behaviors change in October 2024?
What was the average credit card balance in the UK for October 2024?
How did UK credit card delinquency rates change in October 2024?
What was the average credit limit for UK credit cards in October 2024?
