2026 Canadian Consumer Credit Card Report

Credit cards have become an indispensable tool in a world of rising costs. Using them with confidence is another matter.

Key findings

Credit card use for essentials hits a three-year high

The Consumer Price Index rose by nearly 20% between 2020-2025, according to Statistics Canada, and essentials like shelter and groceries are demanding an ever-bigger cut of the typical Canadian paycheque.

For many, credit cards are a tool to bridge the gap. The majority of Canadian adults (75%) used a credit card to pay for essential purchases in the past 12 months, similar to 74% in 2025 and up from 69% in 2024.

Rising credit card use for essentials may seem like a red flag, but there’s evidence to suggest Canadians are finding ways to keep pace.

More Canadians are paying essential balances in full

Putting essentials on credit doesn’t necessarily mean more debt. Cost-of-living crunch be damned, Canadians are getting better at keeping their card balances in check. 55% of Canadians used a credit card for essential purchases and paid those balances in full each month in 2026, similar to 51% in 2025 and up from 48% in 2024.

Still, not everyone is able to clear essential balances month to month. Twenty percent of Canadians who say they used a credit card for essential purchases in the past 12 months did not pay their balances in full each month.

Sticky card balances don’t just generate interest — they actively devalue card rewards. This matters, because Canadians are cashing in card rewards to relieve the burden of essential costs.

Reward redemptions for essentials are consistent

More than a third of Canadians (36%) redeemed credit card rewards to pay for essential purchases in the past 12 months, similar to 33% in both 2024 and 2025. Among generations, Millennials (ages 30–45) are more likely to redeem credit card rewards for essential purchases, with 45% reporting they did so in the past 12 months compared to 33% of Gen Z (ages 18-29) and 27% of Baby Boomers (ages 62-80).

Financial confidence is in short supply

Credit cards are a staple in many a Canadian wallet, but wielding them with confidence? That’s another matter entirely. Only 45% of Canadians say they understand the full benefits and risks of opening a new credit card.

This uncertainty extends beyond the realm of credit cards. Less than half of Canadians (47%) say they feel confident when making financial decisions, and fewer (39%) feel confident when choosing between financial products.

One possible reason: many money conversations happen behind closed doors. Just 31% of Canadians say they feel comfortable speaking openly about their finances with family and friends.

Composure, caution and cynicism: Generational divides shape credit card perspectives

When it comes to money matters, where you stand may have a lot to do with when you were born.

Baby Boomers take the financial confidence crown

Decades of managing your finances seems like a breeding ground for self-assurance, because nearly two-thirds of Baby Boomers (61%) say they feel confident making financial decisions — more than Gen X (45%), Millennials (43%) or Gen Z (33%).

That confidence extends to picking financial products, too. Fifty-two percent of Baby Boomers say they feel confident choosing between financial products, compared to 34% of Gen X, 35% of Millennials and just 29% of Gen Z.

Boomers also are more likely to report confidence when opening new credit cards. Over half (56%) of Baby Boomers say they understand the full benefits and risks that come with opening a new credit card, while only 44% of Gen X, 42% of Millennials and 33% of Gen Z said the same. Boomers trust themselves to do the legwork, too, as they are more likely than younger generations to rely on their "own independent research" when choosing a new credit card (64% vs. 52% of Millennials and 45% of Gen Z).

Gen Xers are wary of card providers

Baby Boomers may lead in financial confidence, but Gen X stands out for skepticism.

More than a third of Gen Xers (36%) say that credit card companies rely on people making poor financial decisions — they are significantly more likely to feel this way than Gen Zers (21%).

And Gen X’s wariness doesn’t stop there. Gen Xers are less likely than Millennials to believe that credit cards are designed to help individuals meet their financial goals — just 15% hold this view, compared to 29% of Millennials.

Millennials more likely to view credit cards as a means to an end

Call it cautious optimism, but Millennials appear to have a more pragmatic relationship with their credit cards.

This pragmatism also shows up in how Millennials use their cards. Millennials are more likely to redeem credit card rewards for essential purchases, with 45% reporting they did so in the past 12 months, compared to 33% of Gen Z and 27% of Baby Boomers.

Gen Zers lag on responsible credit use

If Baby Boomers are the financial confidence benchmark, Gen Z has the furthest to go.

Only one third of Gen Zers (33%) say they feel confident making financial decisions - roughly half the rate of Baby Boomers (61%). When choosing between financial products, only 29% of Gen Zers say they feel confident, compared to 52% of Baby Boomers.

Where they turn for guidance looks different, too. Gen Z is less likely than Baby Boomers to rely on their own research (45% vs. 64%) when choosing a new credit card and among the most likely to be influenced by social media (42% each Gen Z and Millennials vs. 17% Gen X and 5% Baby Boomers).

By their own admission, Gen Zers also struggle with their credit habits. Fewer than 1 in 3 Gen Zers (28%) say they use credit (including credit cards, loans, and BNPL services) responsibly, compared to 43% of Gen Xers and 66% of Baby Boomers.

The data paints a picture of a financially uncertain generation still coming into its own, but competence isn’t built overnight. Financial savvy comes with time and experience — Gen Z is just getting started.

Digital tools are impacting how younger Canadians think about money

The digital world appears to have an outsized impact on how younger Canadians pilot their finances.

Take social media. Nearly a quarter of Canadians (24%) say social media content would influence their credit card choices, but this figure is significantly higher among Gen Z (42%) and Millennials (42%), compared to just 17% of Gen X and 5% of Baby Boomers.

Digital wallets may also affect how spending feels in the moment. Nearly a quarter of Gen Z (23%) and 17% of Millennials say that when they use tap-to-pay or a digital wallet, they don't feel like they're spending real money. Ten percent of Gen X and 4% of Baby Boomers say the same.

Rewards and fees still reign for Canadian credit card shoppers

When it comes to comparing cards, Canadians prefer a DIY approach — independent research (56%) is the most commonly cited factor that would influence Canadians when choosing a new credit card. This research could be centered around two make-or-break factors. Rewards (67%) and no annual fees (66%) remain the most important features for Canadians when choosing a new credit card.

Now, points and cash back potential may be the first line item under review, but the decision doesn’t end there. More than 2 in 5 Canadians (41%) say promotions or sign-up bonuses offered by credit card companies or partners would influence their decision when choosing a new credit card.

While a time-sensitive or abundantly sized welcome offer can be persuasive, keep an eye on the fine print. A new card is most practical if it fits your long-term financial picture and aligns with your spending habits.