UK Credit Card Spending Hits Unseasonal Two-Year High, FICO Data Reveals

LONDON, Sept. 17, 2012 /PRNewswire/ -- FICO (NYSE:FICO), the leading provider of analytics and decision management technology, today released its quarterly UK cards data showing that in the second quarter of 2012 average total sales per "classic" card reached their second-highest point in two years, behind December 2011 but higher than December 2010. Classic cards exclude premium cards, student cards and Irish cards. The latest data from the FICO^® Benchmark Reporting Service also showed that several measures of delinquencies fell, with average two-cycle balances hitting their lowest level in more than two years.

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"Taken together, the sales and delinquency figures suggest that UK consumers need their cards and are protecting themselves from high fees by managing their payments well," said  Mike Gordon, FICO vice president and managing director for Europe, the Middle East and Africa. "We have seen a long-term pattern of declines in delinquent amounts and delinquent cards. This supports the notion that many consumers now view credit cards as 'survival tools' in a difficult economy."

Other highlights in last quarter's FICO data on UK cards included a rise in the percentage of classic accounts that are current in their payments, which reached the best level in more than two years. The percentages of classic accounts that were over their credit limit rose slightly from last quarter, but still represented the second-lowest level in two years. Last quarter also saw a further decline in average interest income per classic card, and the highest rate of inactive cards since June 2010.

The card performance figures are part of the data shared with subscribers of the FICO^® Benchmark Reporting Service, which compares overall market performance in the UK cards market with individual card issuers' performance. The data sample studied represents 26 million accounts, or about half of all credit cards issued in the UK, and comes from client reports generated by the FICO^® TRIAD^® Customer Manager solution in use by most UK card issuers.

Card issuers that subscribe to the FICO^® Benchmark Reporting Service receive a quarterly review of their portfolio vs. the industry, with 24 months' worth of data. For greater insight, subscribers can drill into the data by vintage of accounts. For information on the FICO Benchmark Reporting Service, contact Stacey West at [email protected].

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SOURCE FICO