FICO: “Clear signs of price pressures”  

The applied analytics company released its analysis of UK card trends for March 2022 today (31 May). It found that repayments remain a priority for credit card holders, although credit card payments are yet to show signs of financial distress.  

The average card spend dropped marginally by just under two percent compared to February 2022. But the £691 average was a 23.39% increase from March 2021.  

Average active balance was £1,519 – marking a drop of 0.54% from the previous month. Again, the change from the previous year was higher, with a 4.13% increase.  
 
The percentage of payments to balance increased by 2.32% from February 2022, which FICO said indicated “pragmatic caretaking of credit card accounts”. 

Its research further found the percentage of accounts with one and two months’ missed payments increased month-on-month.  

The proportion of accounts with one missed payment increased by 16.51% to 1.64%. 

Those with two missed payments increased by 6.24%, to 0.27%. 

However, accounts with three missed payments dropped by 7.23%, to 0.15%.  

FICO said the figures show “clear signs of price pressures impacting finances with a 16 percent month-on-month increase in accounts that are one month in arrears”.  

The business added: “Another signal of falling consumer confidence is the small drop – less than two percent – in spend on cards in March 2022.  
 
“Remaining vigilant to repayment trends over the next few months will be critical for lenders to ensure vulnerable households are given the support they need.”