The rising cost of living is startling, and many Canadians are using credit cards to supplement their income and stay afloat.
Credit cards are useful, convenient and often necessary for booking flights, hotels and car rentals. But credit card debt can quickly spiral out of control.
Canada’s latest credit card statistics highlight our growing dependence on credit cards.
Credit card statistics Canada: Highlights
- Over 1.4 million new cards were issued in the last three months of 2022.
- Total credit card balances are now over $100 billion, their highest level on record.
- As of September 2022, the average credit card balance was at a record high of $2,121.
- 300,000 Canadians carried over an unpaid credit card balance in 2022.
- 52% of Canadians used credit cards to pay a bill or household expenses in 2021.
- 58% of credit card users use them to receive discounts, loyalty points and rewards.
- 22% of Canadians have experienced credit card fraud in their lifetime.
Canadian credit card statistics
The following credit card stats help to give a clearer picture of how credit cards are used and the growth in overall credit card debt in Canada.
1. Credit and debit cards are used by 97% of Canadians
Nearly all of Canada are debit card or credit card owners; 97% of Canadians have a debit or credit card.
Credit card transactions are the most used for online purchases and at the point of sale.
78% of Canadians use online banking, and 72% manage their credit card use online. 29% admit to making large online purchases, with this figure rising to 35% among those aged 18-34.
Source: Ipsos, Chartered Professional Accountants of Canada
2. Credit card transactions made up 33% of all payment transactions in 2021
Credit cards were the most popular payment method by volume.
In 2021, Canadians made 19.7 billion payment transactions, with 33% of these transactions made by credit cards.
Debit cards followed closely behind at 30%, a ten percent increase over the last five years.
Canada is moving towards a cashless society. The use of cash has continued to fall, accounting for only 10% of all payment transactions in 2012, a drop of 62% from 2016.
Source: Payments Canada
3. Digital and contactless payments are on the rise
The latest credit card trends indicate that Canadians are shifting their payment preferences to digital and contactless payments.
Since the COVID-19 pandemic, 43% of Canadians tapped their credit card, and 42% tapped their debit card when paying at a store.
Contactless payment transaction value increased year-over-year in 2021 by 18%, and digital wallet use continues to rise; mobile payment usage in 2021 grew by 17% year on year.
Source: Payments Canada
4. In 2022, the average credit card debt in Canada was $2,121
At the end of September 2022, the average balance on Canadian credit cards stood at a record high of $2,121, with the average debt (excluding mortgages) at $21,188 per person.
Source: Equifax Canada
5. In 2022, the average credit card limit on new cards was over $5,800
Exact figures on average credit card limits in Canada are not made public by card issuers. But in September 2022, the average credit limit on new cards was over $5,800, the highest in seven years.
Your credit card spending limit varies depending on your credit score and overall financial health. A high credit limit can be achieved if you have a good credit history, stable employment, higher income and less debt.
Source: Equifax Canada
6. Credit card balances crossed over $100 billion for the first time
A 2023 report on credit card trends from Equifax Canada revealed that total credit card balances have grown by 15.3% compared to the same period a year ago, reaching over $100 billion for the first time.
Credit card debt rose across all age groups. This is due, in part, to the surging cost of necessities and rising interest rates. Younger Canadians are being hurt the most by inflation, with consumers under thirty-five experiencing the most significant increase in credit card debt.
Overall, total consumer debt in the last quarter of 2022 rose to $2.37 trillion, up 6.2 percent from the same period in 2021.
According to Statistics Canada, credit card debt owed to chartered banks (officially recognized banks) increased by 15.2% from January 2022 to January 2023, and retail sales rose by 4.3%. In other words, Canadians are using their credit cards more and paying off their debt at a slower rate.
Source: Equifax Canada, Statistics Canada
7. Over 1.4 million new cards were issued in the last three months of 2022
1.4 million new credit cards were issued in the final three months of 2022. This increase in cards and the rise in living costs help to explain the boom in credit card limits and their overall balances.
Canada also recorded a record population growth of 1,050,110 people from January 1, 2022, to January 1, 2023, which may have had a significant impact on credit card ownership.
Source: Equifax Canada
8. Since the COVID-19 pandemic, 31% of Canadians use their credit card more often
According to a 2022 report by Payments Canada, there has been a 31% increase in credit card usage by consumers since the onset of the COVID-19 pandemic.
Source: Payments Canada
9. Canadian millennials are taking on more debt
According to Equifax, Canadian non-mortgage debt continues to rise, with millennials (aged 27-42) seeing the biggest jump. The figures show a year-on-year jump of 8.4% in non-mortgage debt levels among millennials in the last quarter of 2022.
A rise in credit card usage primarily drove the overall growth of non-mortgage debt.
Source: Equifax Canada
10. Around three-quarters of all Canadians used their credit cards frequently for payments in 2021
In 2021, around 74% of Canadians regularly used their credit cards to make payments, with credit card usage being higher among younger Canadians.
Younger people (aged 18-34) used them more frequently at 77%, while only 67% of those 55 and older did the same.
Source: Payments Canada
11. 300,000 Canadians carried over an unpaid credit card balance in 2022
In 2022, over 300,000 Canadians carried on an outstanding balance on their credit card from one month to the next rather than paying off the full balance at the end of the billing cycle.
Average credit card debt in Canada is also increasing. The average revolving balance on credit cards was up by 9.3% compared to 2021. This signifies a shift in payment behaviour.
Source: Equifax Canada
12. 71% of Canadians pay their balance off in full every month
71% of Canadians pay their credit card balance in full every month, avoiding interest charges.
Carrying a balance from month to month is a major pitfall for credit card users. If you don’t pay bills, interest charges can quickly add up if balances are carried over, or repayments are missed. Before you know it, you are overwhelmed by credit card debt.
Source: Canadian Bankers Association
13. Canadians with lower credit scores are carrying higher balances on their credit cards
As credit card limits grow, there has been an increase in credit card use among Canadians with lower credit scores. Those in this group tend to be more vulnerable to changes in financial circumstances, making it more likely to impact their ability to repay debt.
In the second quarter of 2022, card balances for consumers with a credit score lower than 620 rose by 7.4% compared to the previous quarter and are up 16.2% from the previous year.
Credit scores indicate how good someone is at paying back debt. 660 or higher is considered a good credit score.
Source: Equifax Canada
14. Over half of Canadians (52%) used credit cards to pay a bill or household expenses in 2021
In 2021, 52% of Canadians used credit cards to cover bills and household expenses. Common expenses included memberships (e.g. gym, meal kits), streaming services (e.g. Netflix, Spotify), subscriptions, internet and cell phone costs, cable fees, insurance, and home services (e.g., daycare, contractors).
Source: Payments Canada
15. 58% of credit card users use them to receive discounts, loyalty points and rewards
The top five factors driving credit card use among consumers are primarily centred around convenience and rewards.
58% of consumers use credit cards to receive discounts, loyalty points and rewards. A credit card rewards program often offers cashback rewards and reward points for using the card.
- 45% appreciate the fact that most credit cards are accepted as payment.
- Speed is another major factor, with 44% of users citing fast transactions.
- 37% find credit cards more convenient and easier to use than other payment methods.
- 25% of consumers believe that credit cards make it easier to control and keep track of expenses.
Source: Payments Canada
16. The number of credit-active consumers has increased
More Canadians used credit products in the fourth quarter of 2022, with a 3.2% increase compared to the previous year. The surge in growth was primarily due to the demand for credit due to the rising cost of living and an influx of newcomers to Canada.
Source: Equifax Canada
17. Credit card delinquencies increased by 23% in 2022
In 2022, the 90+ day volume delinquency for credit cards rose 23%. These increases in missed credit card payments are perhaps a sign of things to come.
Source: Equifax Canada
18. 22% of Canadians have experienced credit card fraud in their lifetime
A new Ipsos poll commissioned by the Chartered Professional Accountants of Canada has uncovered that 43% of Canadians have been knowingly targeted by fraud or scams. Older Canadians aged 55 or older are the least likely to report fraud knowingly.
Credit card fraud is the most prevalent type, accounting for 21% of reported cases, followed by debit card fraud (8%) and online phishing scams (8%).
Alarmingly, less than half (42%) of Canadians receive email or text alerts for every transaction made on their credit or debit cards. Even worse, just 54% report fraud to their financial institution.
Fraud losses in Canada hit a record high in 2022. In 2022, the Canadian Anti-Fraud Centre recorded a massive $530 million in victim losses due to fraud and cybercrime reports, with credit card fraud likely to make up a significant proportion.
Source: Ipsos, Chartered Professional Accountants of Canada
Wrapping up
Canadians continue to use credit to alleviate daily financial pressures and cover household debt and essential expenses like food and gas.
The most recent credit card statistics in Canada show astronomical growth in credit card spending. Balances have soared to historic highs, with average credit card debt on the rise. The average credit card spending limit now stands at over $5,800.
There are also increases in missed payments on credit cards, especially for Canadians on lower incomes.
Credit card FAQs
What credit score is needed for a credit card in Canada?
In Canada, a credit score of 660 or higher is generally considered a good score. However, requirements vary among card issuers, and some cards cater to those with lower scores or limited credit history. You can also put down a deposit to get a secured credit card.
What is the average debt load in Canada?
According to the latest report from Equifax, the average non-mortgage debt per consumer was $21,188 as of September 2022.
What is the typical interest rate on a credit card?
Most credit cards have a typical interest rate of around 20%. It can be significantly higher, but you might be able to access a card with a lower interest rate if you have a good credit score and shop around.
How do I prevent credit card fraud in Canada?
To prevent credit card fraud in Canada, keep your card secure; never share your PIN or information. Regularly review statements for suspicious transactions, enable transaction alerts and monitor your credit report. Use reputable websites for secure online shopping.
Sources
- Equifax Canada: Market Pulse Quarterly Credit Trends Q4 2022
- Equifax Canada: Economic Headwinds Impacting Debt Levels and Credit Payment Behaviour
- Equifax Canada: Financial Stress Mounts, Credit Card Demand and Debt Rise
- Equifax Canada: Increased Cost of Living and Mounting Debt Cause Major Concerns for Canadians
- Statistics Canada: Monthly Credit Aggregates, January 2023
- Ipsos: Fraud is Too Common in Canada
- Canadian Bankers Association: Credit Cards
- Payments Canada: Canadian Payment Methods and Trends Report 2022
- MoneySense
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