FICO Analysis Reveals Increasing Financial Stress Among Consumers
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 2 hours ago
0mins
Should l Buy FICO?
Source: Businesswire
- Consumer Financial Stress: FICO's analysis indicates that the average credit card balance reached £1,950 in December 2025, marking the highest level since the start of their analysis, highlighting the ongoing financial stress consumers face post-holiday spending.
- Declining Payment Rates: Despite payment rates remaining at 33.4%, the increase in pre-Christmas spending has led to a rise in the number of customers missing payments, reflecting challenges in repayment capacity amid high living costs.
- Increase in Delinquent Accounts: In December 2025, the percentage of accounts with one missed payment rose to 1.4%, a 6.4% increase from the previous month, while accounts with three missed payments also increased, indicating ongoing challenges for financially stressed customers.
- Risk Monitoring Recommendations: FICO advises risk teams to enhance monitoring of payment patterns and implement proactive intervention strategies in January and February to address potential payment stress and ensure customer financial health.
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Analyst Views on FICO
Wall Street analysts forecast FICO stock price to rise
9 Analyst Rating
8 Buy
1 Hold
0 Sell
Strong Buy
Current: 1337.640
Low
1700
Averages
2126
High
2500
Current: 1337.640
Low
1700
Averages
2126
High
2500
About FICO
Fair Isaac Corporation is an applied analytics software company. The Company is focused on using predictive analytics and data science to improve operational decisions. The Company operates through two segments: Scores and Software. The Scores segment includes the Company's business-to-business scoring solutions and services which give its clients access to predictive credit and other scores. This segment includes its business-to-consumer scoring solutions, including its myFICO.com subscription offerings. The Company’s Software segment includes pre-configured analytic and decision management solutions designed for a specific type of business need or process, such as account origination, customer management, customer engagement, fraud detection and marketing as well as associated professional services. This segment includes FICO Platform, a modular software offering designed to support advanced analytic and decision use cases as well as stand-alone analytic and decisioning software.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
FICO Analysis Reveals Increasing Financial Stress Among Consumers
- Consumer Financial Stress: FICO's analysis indicates that the average credit card balance reached £1,950 in December 2025, marking the highest level since the start of their analysis, highlighting the ongoing financial stress consumers face post-holiday spending.
- Declining Payment Rates: Despite payment rates remaining at 33.4%, the increase in pre-Christmas spending has led to a rise in the number of customers missing payments, reflecting challenges in repayment capacity amid high living costs.
- Increase in Delinquent Accounts: In December 2025, the percentage of accounts with one missed payment rose to 1.4%, a 6.4% increase from the previous month, while accounts with three missed payments also increased, indicating ongoing challenges for financially stressed customers.
- Risk Monitoring Recommendations: FICO advises risk teams to enhance monitoring of payment patterns and implement proactive intervention strategies in January and February to address potential payment stress and ensure customer financial health.
See More
FICO Reports Record High Credit Card Balances Amid Financial Pressures
- Spending Trends: In December 2025, the average UK credit card spend reached £830, reflecting a 5.6% increase from November but a 3.5% decrease from December 2024, indicating heightened financial pressures on consumers post-holiday.
- Rising Balances: The average active balance hit £1,950, up 1.7% from November and 4.8% year-on-year, marking the highest level since FICO began tracking, which underscores the increasing burden on consumers.
- Stable Payment Rates: The percentage of payments to balance remained stable at 33.4% in December, a slight increase of 0.1% from November but down 6.8% year-on-year, suggesting ongoing challenges in debt repayment for consumers.
- Increased Delinquency: The proportion of accounts missing one payment rose by 6.4% month-on-month, while those missing three payments increased by 4.9% year-on-year, highlighting a growing number of consumers facing financial distress, necessitating enhanced monitoring by risk management teams.
See More
FICO Reports Record High Credit Card Balances Amid Financial Pressures
- Spending Trends: In December 2025, average UK credit card spending reached £830, reflecting a 5.6% increase from November, yet a 3.5% decrease from December 2024, indicating rising holiday expenditures amidst declining consumer purchasing power.
- Rising Balances: The average active balance hit £1,950, up 1.7% from November and 4.8% year-on-year, marking the highest level since FICO began tracking, which underscores the escalating financial pressures consumers are facing.
- Stable Payment Ratios: The percentage of payments to balance remained stable at 33.4% in December, a slight increase of 0.1% from November but a 6.8% year-on-year decline, suggesting growing difficulties for consumers in managing debt repayment, potentially leading to increased default risks.
- Missed Payments: The proportion of accounts with one missed payment rose by 6.4% month-on-month, while those missing three payments increased by 4.9% year-on-year, highlighting a growing number of consumers struggling with financial challenges amid rising living costs, prompting risk management teams to enhance monitoring for potential payment stress.
See More
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- Historical Return Comparison: It references the investment returns of Netflix and Nvidia at the time of their recommendations, yielding $436,126 and $1,053,659 respectively, showcasing Stock Advisor's strategy's significant historical market outperformance.
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- Investor Reactions: Following the video's release, investors are reminded to consider the potential risks associated with tech stocks, which could prompt them to adjust their holdings in the short term to mitigate market volatility.
- Industry Outlook: The mention of the DeepSeek moment in the video suggests that the tech sector may be at a significant turning point, necessitating close monitoring of the financial health and market performance of relevant companies.
- Subscription and Promotion: The video encourages viewers to subscribe and click on a special offer link, indicating the content creator's intent to enhance audience engagement and increase platform influence and revenue.
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Grab Finance Leverages FICO Platform to Enhance Credit Accessibility
- Increased Credit Accessibility: Grab Finance has implemented over 22 decision workflows, resulting in nearly a 50% increase in credit eligibility rates for users, enabling 46 million consumers and millions of merchants and drivers to access formal credit more rapidly, significantly improving credit access in Southeast Asia.
- Innovative Technology Application: The solution leverages user behavioral data, such as ride frequency and merchant revenues, combined with the advanced capabilities of the FICO Platform to enable automated pre-approved credit offers, aligning with regional laws and Grab's privacy commitments, thereby promoting financial inclusion.
- Rapid Implementation Results: In less than eight months, FICO successfully delivered phase one of the project across six countries where Grab operates, automating key processes like credit eligibility assessment, showcasing Grab's innovative capabilities in regional credit services.
- Economic Transformation Impact: The success of Grab Finance allows previously 'invisible' drivers and merchants to obtain credit based on their everyday digital behaviors, driving economic transformation, and earning recognition with the 2026 FICO Decision Award for its achievements in financial inclusion.
See More
FICO Analysis Reveals Increasing Financial Stress Among Consumers
- Consumer Financial Stress: FICO's analysis indicates that the average credit card balance reached £1,950 in December 2025, marking the highest level since the start of their analysis, highlighting the ongoing financial stress consumers face post-holiday spending.
- Declining Payment Rates: Despite payment rates remaining at 33.4%, the increase in pre-Christmas spending has led to a rise in the number of customers missing payments, reflecting challenges in repayment capacity amid high living costs.
- Increase in Delinquent Accounts: In December 2025, the percentage of accounts with one missed payment rose to 1.4%, a 6.4% increase from the previous month, while accounts with three missed payments also increased, indicating ongoing challenges for financially stressed customers.
- Risk Monitoring Recommendations: FICO advises risk teams to enhance monitoring of payment patterns and implement proactive intervention strategies in January and February to address potential payment stress and ensure customer financial health.
See More
FICO Reports Record High Credit Card Balances Amid Financial Pressures
- Spending Trends: In December 2025, the average UK credit card spend reached £830, reflecting a 5.6% increase from November but a 3.5% decrease from December 2024, indicating heightened financial pressures on consumers post-holiday.
- Rising Balances: The average active balance hit £1,950, up 1.7% from November and 4.8% year-on-year, marking the highest level since FICO began tracking, which underscores the increasing burden on consumers.
- Stable Payment Rates: The percentage of payments to balance remained stable at 33.4% in December, a slight increase of 0.1% from November but down 6.8% year-on-year, suggesting ongoing challenges in debt repayment for consumers.
- Increased Delinquency: The proportion of accounts missing one payment rose by 6.4% month-on-month, while those missing three payments increased by 4.9% year-on-year, highlighting a growing number of consumers facing financial distress, necessitating enhanced monitoring by risk management teams.
See More
FICO Reports Record High Credit Card Balances Amid Financial Pressures
- Spending Trends: In December 2025, average UK credit card spending reached £830, reflecting a 5.6% increase from November, yet a 3.5% decrease from December 2024, indicating rising holiday expenditures amidst declining consumer purchasing power.
- Rising Balances: The average active balance hit £1,950, up 1.7% from November and 4.8% year-on-year, marking the highest level since FICO began tracking, which underscores the escalating financial pressures consumers are facing.
- Stable Payment Ratios: The percentage of payments to balance remained stable at 33.4% in December, a slight increase of 0.1% from November but a 6.8% year-on-year decline, suggesting growing difficulties for consumers in managing debt repayment, potentially leading to increased default risks.
- Missed Payments: The proportion of accounts with one missed payment rose by 6.4% month-on-month, while those missing three payments increased by 4.9% year-on-year, highlighting a growing number of consumers struggling with financial challenges amid rising living costs, prompting risk management teams to enhance monitoring for potential payment stress.
See More
Analysis of the 'SaaSpocalypse' for Tech Stocks
- Market Trend Analysis: The video discusses the phenomenon termed 'SaaSpocalypse' concerning technology and software stocks, highlighting its potential impact on investors, particularly in the context of rapid advancements in AI.
- Investment Recommendations: The analyst team has identified ten stocks deemed the best for current investment, notably excluding Shopify, which indicates a cautious outlook on its future performance.
- Historical Return Comparison: It references the investment returns of Netflix and Nvidia at the time of their recommendations, yielding $436,126 and $1,053,659 respectively, showcasing Stock Advisor's strategy's significant historical market outperformance.
- Investor Community Value: The emphasis is placed on the value of the Stock Advisor investor community, encouraging individual investors to engage and leverage the platform for the latest investment advice and market insights.
See More
The SaaSpocalypse Moment for Tech Stocks
- Market Dynamics Analysis: On February 5, 2026, technology and software stocks are experiencing what is termed the 'SaaSpocalypse' moment, indicating market concerns about future growth in these sectors, which may lead investors to reassess their portfolios.
- Investor Reactions: Following the video's release, investors are reminded to consider the potential risks associated with tech stocks, which could prompt them to adjust their holdings in the short term to mitigate market volatility.
- Industry Outlook: The mention of the DeepSeek moment in the video suggests that the tech sector may be at a significant turning point, necessitating close monitoring of the financial health and market performance of relevant companies.
- Subscription and Promotion: The video encourages viewers to subscribe and click on a special offer link, indicating the content creator's intent to enhance audience engagement and increase platform influence and revenue.
See More
Grab Finance Leverages FICO Platform to Enhance Credit Accessibility
- Increased Credit Accessibility: Grab Finance has implemented over 22 decision workflows, resulting in nearly a 50% increase in credit eligibility rates for users, enabling 46 million consumers and millions of merchants and drivers to access formal credit more rapidly, significantly improving credit access in Southeast Asia.
- Innovative Technology Application: The solution leverages user behavioral data, such as ride frequency and merchant revenues, combined with the advanced capabilities of the FICO Platform to enable automated pre-approved credit offers, aligning with regional laws and Grab's privacy commitments, thereby promoting financial inclusion.
- Rapid Implementation Results: In less than eight months, FICO successfully delivered phase one of the project across six countries where Grab operates, automating key processes like credit eligibility assessment, showcasing Grab's innovative capabilities in regional credit services.
- Economic Transformation Impact: The success of Grab Finance allows previously 'invisible' drivers and merchants to obtain credit based on their everyday digital behaviors, driving economic transformation, and earning recognition with the 2026 FICO Decision Award for its achievements in financial inclusion.
See More
