FICO Data Shows Lasting Positive Impact of Pandemic on UK Credit Card Payment Habits

FICO has released a six-year analysis of UK credit card payment trends, revealing that financial habits formed during the COVID-19 pandemic have endured. The pandemic prompted consumers to pay off more of their credit card balances, aided by fewer spending opportunities and government financial support. This shift has continued post-pandemic, even during ongoing economic pressures.

The percentage of balances paid peaked at 42% in May 2022 and remains 5% above pre-pandemic levels. Similarly, the share of consumers paying off their full balance rose from 45% pre-pandemic to a peak of 55% in December 2022 and remains steady at 50%. Fewer consumers now pay less than the minimum due, and more are using direct debit, though adoption has declined among newer customers.

FICO suggests that credit card issuers can build loyalty and spending by offering personalized incentives and flexible payment options to these financially healthier consumers.