Canadians Are Feeling Less Squeezed — But Fraud Is Rewriting How We Manage Credit

 

New data from TransUnion's Q2 2026 Canada Consumer Pulse Study, released July 22, 2026

There's a small but real shift happening in Canadian households right now. After years of headlines about affordability and inflation, a new survey suggests things are slightly less bleak — but Canadians aren't relaxing. They're getting more careful, and increasingly, more worried about fraud than about their credit score.

TransUnion's newest Consumer Pulse Study, out today, paints a picture of a country cautiously exhaling — while quietly tightening the locks on its financial front door.

The Good News: A Little More Breathing Room

For the first time in a while, the numbers aren't all doom. Roughly a quarter of Canadians surveyed said their household income rose over the past three months, and nearly one in four say their finances are running better than they expected this year — the best reading TransUnion has recorded in the past 12 months.

Optimism is edging up too: 45% of respondents feel good about where their household finances will be a year from now.

What it means for you: If your income has crept up this year, you're not imagining it — you're part of a broader trend. The move that pays off now is directing that extra room toward high-interest debt or a TFSA top-up before lifestyle creep absorbs it.

The Catch: Inflation Still Dominates the Budget Conversation

Here's the part that hasn't budged: 86% of Canadians still rank inflation among their top three financial worries, and half say their paycheque simply isn't keeping up with the cost of living. That mismatch is exactly why the "cautious optimism" in this survey doesn't look like celebration — it looks like triage.

The trade-offs households are making are familiar to anyone who's been tightening a budget this year:

• 51% cut discretionary spending — dining out, travel, entertainment
• 26% cancelled subscriptions or memberships
• 18% put extra money toward paying down debt faster
• Only 11% increased discretionary spending — though that's up three points from a year ago, a small sign of loosening

Borrowing Is Back on the Table — Carefully

A quarter of Canadians plan to apply for new credit or refinance in the next year — basically unchanged from last year, which itself is notable given how much borrowing costs have been in the news. Gen Z and Millennials are leading that demand, with 48% and 37% respectively planning to apply, and credit cards remain the go-to product for new borrowers.

But roughly one in five Canadians who considered applying for credit ultimately backed off. The reasons split fairly evenly: some decided they didn't need it, some balked at the cost of borrowing, and others assumed — rightly or wrongly — that their credit history or income wouldn't qualify them anyway.

What it means for you: If you're one of the Canadians assuming you won't qualify for credit, that assumption is worth testing rather than guessing at. A soft-pull pre-qualification check through your bank or a service like Borrowell won't hurt your score and tells you where you actually stand before you commit to a hard application.

The Real Story: Fraud Is Changing How Canadians Watch Their Money

This is the part of the report that stands out most. Nearly half of Canadians surveyed — 44% — say they were targeted by fraud in the past three months but weren't victimized, and one in five say they've been notified of a data breach affecting them. That's not background noise anymore; it's a routine part of financial life.

The response has been a genuine behavioural shift: 40% of Canadians now check their credit report at least monthly, up three points year over year. And tellingly, TransUnion notes people are increasingly checking their reports to catch fraud and verify accuracy — not just to chase a better credit score.

Yet there's a gap between concern and action. A third of Canadians say they've taken no steps to address cybersecurity risks, and more than half of that group admits they simply don't know where to start.

Three free habits worth building this week

1. Pull your credit report — free. Both Equifax Canada and TransUnion Canada let you request your report by mail at no cost, and both offer free online access with an account. You're entitled to check as often as you like.
2. Set up a free monitoring alert. Tools like Borrowell or Credit Karma Canada offer free ongoing credit monitoring with alerts for new inquiries or accounts opened in your name.
3. Place a fraud alert if you're notified of a breach. A fraud alert flag with the credit bureaus tells lenders to take extra verification steps before approving new credit in your name — it's free and takes minutes.

BOTTOM LINECanadians aren't out of the affordability squeeze, but there's a genuine, measurable easing underway. The bigger shift is behavioural: fraud, not just interest rates, is now shaping how often people look at their own financial picture. Checking your credit report monthly costs nothing and takes a few minutes — make it as routine as checking your bank balance.

Source: TransUnion Canada, Q2 2026 Canada Consumer Pulse Study, released July 22, 2026.