FICO has just released UK card data for September that shows a worrying pattern. The percentage of their balance that holders of classic cards paid off in September hit a two-year low. Combined with a rise in cash usage and lower average credit lines, the data suggests that consumers are starting the Christmas shopping season with a real strain on their wallets.
Of course, it’s just one month’s data, and we’ll be monitoring to see if the pattern continues, and helping our card issuer clients understand the impact on their strategies and revenues.
By the way, if you are a UK card issuer, you can get access to a full report of card patterns over the last 24 months, compared to your own portfolios’ patterns. It’s a detailed look at how your cards are performing vs. the market. Talk to your FICO representative about the FICO Benchmark Reporting Service.