Do Canadians Rely on Credit Cards More Than Other Countries?

Do you make everyday purchases on your credit card? Most of us do. As of 2025, over 83% of Canadian age 15+ have one or more credit cards. And we use them often. In this article, we will explore how this ownership and Canadian credit card usage patterns compare to those in other countries and why. We will also touch on the lessons we can learn from the spending habits of these countries.

Credit Card Usage in Canada

As Canadians, we are not only the world leaders in credit card ownership, but we also have a strong reliance on our cards. According to TransUnion, those who own a credit card in Canada spent an average of $2,136 on it each month in Q4 2024. This represents a near 22% jump from the pre-pandemic days, suggesting we are not about to retire our cards any time soon.

In some countries, cash is king. But not in Canada. Here, we use our cards more than any other payment type, charging everything from our major purchases to our daily cup of coffee. And even online shopping, where nine out of ten Canadians choose to use their card versus paying by another method like using a debit card, a virtual wallet, or an electronic bank transfer.  

Unfortunately, Canadians are not immune to carrying a balance on their credit card, though. As of Q2 2025, the average consumer credit card debt was $4,609, representing a 9.41% increase in just one year. If you find yourself in this group, we encourage you to work towards paying off your debt. For more information, check out our post on How to Get Out of Credit Card Debt.

Global Credit Card Trends

How does Canadian credit card usage compare to other countries? As it turns out, we aren’t the only ones who rely heavily on our cards for day-to-day purchases. Here are a few facts about global credit card trends:

·       Behind Canadians, Israel has the second highest adoption rate for credit cards, with around 81% usage by adults.

·       Our neighbors to the south rely on their credit cards significantly less, with only 68% to 69% of American adults using them. While fewer Americans have credit cards compared to Canadians, those who do have a higher average outstanding balance of USD$6,194. This represents just over $2,000 more of additional credit card debt.

·       Only 64% of adults in the United Kingdom rely on credit cards and they have an average outstanding balance of USD$2,572.

Why Canadians Use Credit Cards More Often

Canadian credit card adoption is among the highest in the world. And why not? Credit cards here have rewards programs, consumer protections, credit card contactless payments, and wide acceptance rates by merchants throughout the country. Not every country offers these types of advantages, removing some of the incentives for using a credit card.

Beyond the practical advantages of credit cards, cultural norms in Canada also play a role. In Japan, for example, people rely heavily on cash and debit transactions as the idea of being in debt is frowned upon. As per a survey by Sumitomo Mitsui Trust Bank, nearly 62% of Japanese believe that whenever possible, it is best to avoid debt. And in Germany, the word for debt is synonymous with “guilt.” This is quite different from in Canada, where we learn that debt, when used appropriately, is not a problem. Many of us rely on debt to put us through school, help us buy a car, and even to purchase a house or start a business. Debt is a common part of our daily lives.

The Risks of Credit Card Usage

While using a credit card is one way to rack up debt, it doesn’t have to be. Responsible habits are key here. High credit card usage can put you at risk of accumulating debt. With credit card interest rates sitting between 19.99% and 25.99%, these charges can snowball quickly. This makes it easy to get caught in a debt spiral, where you must borrow more money in order to pay off the balance you already owe. Not an ideal scenario at all.

What Canadians Can Learn from Other Countries

Instead of racking up a balance on your credit card and falling into debt, Canadians can take a lesson from how other countries spend. In many countries, including Japan and Germany, cash and debit are the dominant payment methods as people tend to spend only what they already have. While you do not need to give up your card, consider taking this lesson to heart. Use your card only when you know you have the cash to cover the purchase. This means you pay more than the minimum and, ideally, the card’s balance in full. In the case of an emergency, turn to your reserve fund and, if necessary, use a balance transfer credit card.

Rather than use credit cards as a default, consider treating them as a tool. With the right strategy, these cards can help you build your credit history, protect you from fraud, and even save you money through rewards. But you must use them with care. By responsibly managing your spending, you can benefit from the convenience and reward structure associated with Canadian credit cards without falling into debt.

Conclusion

Canadians stand out when it comes to their reliance on credit cards. Compared to other countries, we swipe more often. Relying on a credit card too much, though, can have its own drawbacks. The key is balance. Take a lesson from the way other countries use their cards and manage your spending wisely. And pay your balance in full. Responsible usage can help you enjoy the rewards that credit cards have to offer without finding yourself in debt.