Credit card application, usage and repayment statistics suggest Canadians are under increasing financial pressure, according to data analytics firm FICO released Thursday.
Payment-to-balance ratios declined from 55% in July 2023 to between 52% and 53% in mid-2025 across both bank-issued cards and monoline cards (those served by non-bank issuers focused exclusively on credit products).
The decline represented a permanent reset to a lower payment-to-balance ratio and suggested Canadians are managing cash flow by carrying higher balances.
However, delinquency trends for bank-issued cards have remained stable between 2.8% and 3.4%. Seasonal patterns — such as Christmas spending which spiked delinquency to 3.4% in January — were predictable and quickly normalized.
“Despite payment pressures, utilization rates remained relatively stable, suggesting consumers are managing available credit carefully,” the report said.
Balance growth has increased modestly despite the decrease in payment rates and inflationary pressures. Balances have grown 3.9% for bank-issued cards from July 2023 to July 2025 and 4.6% for monoline cards in the same period.
Meanwhile, monoline cards had higher baseline rates between 6% and 6.8% with more volatility. While the figure is stabilized at around 6.1%–6.3%, it still represents a higher risk.
Those using monoline cards are more likely to have lower incomes, thinner credit files and be more sensitive to economic shocks than those using bank-issued cards, the report said.
“Higher delinquency rates in the monoline segment underscore the concentration of credit risk among underbanked populations,” FICO said.
At the same time, new account credit limits for bank-issued cards have grown 12.3% in the 24 months from $5,647 in July 2023 to $6,344 in June 2025. For monoline cards, it grew 20.1% from $4,068 to $4,884 in the same period.
Monoline customers get smaller initial limits but faster credit limit growth, suggesting either a competitive subprime market or efforts to support struggling borrowers.