More Canadians are tapping their credit cards for essential purchases as costs climb, but most are still finding ways to make their budgeting work.

Seventy-five per cent have used a credit card to pay for an essential purchase such as groceries or utilities in the past year, up from 74 per cent last year and 69 per cent in 2024, according to a new report by NerdWallet Canada.

That echoes a recent Toronto-Dominion Bank 

report

that said 70 per cent of its clients’ spending growth comes from groceries and convenience store purchases, up from 40 per cent a year ago.

Despite the increased credit card use, 55 per cent of Canadians told NerdWallet they are paying their credit balance in full every month, up from 51 per cent in 2025.

“Cost-of-living crunch be damned, Canadians are getting better at keeping their card balances in check,” the report said.

Credit card balances, however, still hit a record $131 billion in the fourth quarter of 2025, though missed payments for the quarter rose at a slower-than-expected rate.

“It looks as though consumers have pulled back a little bit in terms of their credit card spending,” Rebecca Oakes, vice-president, advanced analytics at Equifax Canada,

told the Financial Post in February

. “That’s good news.”

But understanding credit cards remains an issue, with just 45 per cent of Canadians understanding the risks of opening a new credit card, NerdWallet said.

A new credit card may open the door to increased spending or better rewards, but it can also harm your credit score since credit bureaus sometimes view a new application as a sign of desperation or financial hardship.

Still, a new card can be enticing. More than 41 per cent of Canadians say a promotion or sign-up bonus prompted them to choose a new credit card, but 67 per cent said rewards were enticing and 66 per cent liked

no annual fees.

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

With files from Serah Louis

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Home sales in Toronto’s real estate market witnessed a slight uptick in March, as pricing dips helps prospective buyers off the sidelines.

In all, more than 5,000 homes changed hands in the month, up 1.7 per cent from February, according to the Toronto Regional Real Estate Board (TRREB).

Prices have fallen 6.7 per cent year-over-year, to an average of $1,017,796.

“Buyers continued to benefit from substantial negotiating power on price across major market segments in the last month,” TRREB chief information officer Jason Mercer said in the report. “However, if market conditions continue to tighten, as they did in March, selling prices could start levelling off as we move through the remainder of 2026.”

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