UK Credit Card Spending Patterns Shift as Veteran Cardholders Show Concerning Delinquency Trends

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.