Top 5 Credit Card Trends in Canada for 2025

At FinlyWealth, we post a lot of credit card content. We tell you which credit cards are best for specific spending categories, break down card features comprehensively, and fill in the gaps when credit topics get a bit too confusing.

Today, we’re going to do something a little different – but still credit-card related.

In this post, we’ve rounded up the top 5 credit card trends in Canada so you can see how these lending tools perform post-application. 

Because we get it, sometimes the best card incentive comes from being influenced by fellow credit-savvy Canadians (ourselves included).

1. Canadian Credit Card Circulation

According to Clearly Payments, as of 2025, Canada boasts some of the highest credit card activity across the globe, with around 101 million total credit cards in circulation. This statistic accounts for both store credit cards and bank-issued cards.

An estimated 7.2 million new credit cards will enter circulation in 2025, reflecting a year-over-year rise of 0.12%.

TransUnion adds that newcomers and young Canadians have contributed to this boost in credit activity. In fact, first time borrowers accounted for $2.6 billion in new credit balances in Q1 of 2025.

Join the Trend: Top Credit-Building Credit Cards for Newcomers in Canada, Best Student Credit Cards in Canada 

2. Age Demographic

About 83.4% of Canadians aged 15 and up and almost 89% of adults aged 18 and up own at least one credit card. 

Seeing budding cardholders enter the lending world is promising. This means that young Canadians are starting to build a credit history, which is essential for future financing. 

Need help navigating the lending landscape as a student? Read: 8 Credit Card Mistakes College Students Make, Plus How to Avoid Them

3. Usage Trends

This year, about 74% of Canadians used their credit cards for essential purchases. These might include groceries, gas, and certain recurring payments such as bills. This statistic is up from a previous 69%.

This increase could be the result of inflation and growing housing costs, encouraging Canadians to focus on and optimize the necessities. 

Notably, 52% of Canadians altered their credit card spending habits in 2025 in response to Canada’s elevated cost of living. 

Find Your Essential Spender: Best Grocery Credit Cards in Canada, Best Gas Credit Cards in Canada, Best Recurring Transactions Credit Cards in Canada.

4. Research on Rewards

With inflation and housing costs on the rise, reward credit cards are a Canadian’s best friend. 

The Canadian Bankers Association tells us that 86% of Canadians use a credit card that collects rewards. Additionally, about 57% of Canadians use credit cards frequently, primarily because of the discounts, loyalty points, and rewards on eligible purchases. 

Looking for a rewards card to optimize your spending? Learn More: Should You Get a Rewards Credit Card?, Best Rewards Credit Cards in Canada 

5. Debt Data

As a cardholder navigating economic fluctuations, you can get caught up in credit card debt. The important thing to note here is that you’re not alone. During Q2 of 2025, nearly 1.4 million Canadians missed a credit card payment. Another press release notes that 58% of Canadian cardholders are deemed “financially unhealthy”, this is up from last year’s reporting of 57%. The report also highlights that 36% of cardholders are carrying debt from a year ago.

The stats don’t end there. Clearly Payments adds that around 23% of Canadians use 80% or more of their available limit, that around 46% of Canadians carry a balance, and that credit card debt growth has increased by 0.3% month-over-month.

Due to the current economic state, credit debt is growing among younger cardholders and those with lower incomes.

If you find yourself struggling with debt, check out our How to Get Out of Credit Card Debt blog, and look into applying for one of Canada’s best balance transfer credit cards or one of the top low-interest credit cards in Canada.

Conclusion

In 2025, credit cards have racked up a decent amount of data. 

The top 5 Canadian credit card trends for you to note are:

• Canada holds some of the highest credit card activity in the world, with boosts in activity attributed to newcomers and younger cardholders
• About 83.4% of Canadians above age 15 and 89% of those 18 and older have at least one credit card
• Credit card usage for essential spending has increased due to Canada’s elevated cost of living
• Most Canadians use a rewards credit card and continue to use credit cards frequently because of reward programs
• Canadian credit card debt is still on the rise and growing among younger cardholders and those with lower incomes

Want to be part of the group of Canadians turning to credit cards for their personal benefit? Your journey starts with our credit card comparison tool, which uses a unique algorithm to translate your spending habits into a list of your top contenders.

FAQs

Why are more Canadians using credit cards for essentials?

These days, Canadians are using credit cards for everyday expenses like gas, groceries, and bills, due to higher living costs. These elevated expenditures make using a credit card to leverage rewards and manage cash flow a practical move.

Are credit card rewards worth it?

If it complements your spending habits and adds more value than cost on a yearly basis, a rewards credit card is absolutely worthwhile. In fact, rewards credit cards are extremely popular among Canadians and reward programs are one of the main motivations for frequent credit card use.

What credit utilization ratio should I aim for?

You should always aim to keep your credit utilization ratio low, typically below 30%.

What practical tips should I implement for healthy credit card use?

There are a few tips you can follow to support your credit health:

• If you’re new to credit, start with a low-fee or no-fee rewards card
• Abide by your billing cycle, making payments on time and in full to build a positive credit history
• Avoid opening too many cards at once, only apply for what you can manage responsibly
• Monitor your credit card balance and utilization 
• Only consider a card upgrade when you’ve established positive credit behaviour and can continue to do so

Learn More: Best No-Fee Credit Cards in Canada, What is a Credit Card Billing Cycle?, How to Manage Multiple Credit Cards and Rewards in Canada