1.4 million Canadians missed a credit payment in Q2 2025 — here's who can still qualify for a balance transfer card

The disconnect is clear: balance transfer cards are best suited to people carrying substantial credit card debt, but most of those cards require a credit score of 660 or higher to qualify. Miss a payment, forget to pay a bill, apply for too many credit lines or miss paying the minimum and that credit score threshold can feel out of reach quickly.

If you're serious about getting out of debt, here's what the data means for your options.

What credit score do you need for a balance transfer card?

Most balance transfer credit cards in Canada require what lenders classify as a 'good' credit score — generally defined as 660 or above on the Equifax Risk Score 2.0 scale, which ranges from 300 to 900 (2). Some issuers also consider income, overall debt load and whether existing credit accounts are in good standing.

Being 'in good standing' is not a minor detail. Lenders want to see that the credit card account carrying the debt you want to transfer has an up-to-date payment history. A single missed payment, particularly if it's recent, can complicate approval even on entry-level balance transfer products.

Plus, your credit score takes a hit just to check if you qualify. Most applications for credit trigger a hard credit inquiry, which can temporarily lower a score by a few points. Applying for multiple cards in quick succession compounds that effect.

How a missed payment affects your chances of qualifying

Payment history is the single largest factor in how credit scores are calculated, accounting for roughly 35% of the overall score in most scoring models. A payment reported as 30 days late can lower a score meaningfully — in some cases by 60 to 80 points, depending on the starting score and overall credit profile (3).

What's worse is that the impact of missed payments is not evenly distributed among Canadian consumers.

The Equifax Canada data shows that non-mortgage holders missed payments at nearly double the rate of mortgage holders — 1 in 19 versus 1 in 37 (4). That missed payment gap widened sharply between 2019 and 2025. In 2019, roughly 45% more non-mortgage holders missed payments. By mid-2025, 96% of non-mortgage holders missed payments.

Age also had an impact. For consumer under age 36, their average non-mortgage debt climbed to just over $14,300, and their 90-plus-day non-mortgage delinquency rate rose to 2.35% — a nearly 20% jump year-over-year (5). Unfortunately, this is the demographic most likely to be carrying high-interest credit card balances and least likely, given recent payment history, to qualify for the products best positioned to help them.

"The affordability crisis seems to be hitting younger consumers the hardest," said Vice-President of Advanced Analytics at Equifax Canada, Rebecca Oakes, in the recent report. "Between rising costs, employment uncertainty, and limited access to affordable credit, many are struggling just to stay afloat."

If your credit is damaged, what are your options?

A score below 660 does not mean debt relief is unavailable — it means the range of tools shifts.

Debt consolidation loans

Some credit unions and licensed lenders offer consolidation loans to borrowers with credit scores as low as 580. These carry higher interest rates than a 0% balance transfer promotional offer, but lower rates than most credit cards and provide a fixed repayment timeline.

Trade your mountain of bills for a single, easy-to-manage monthly payment today. See your debt consolidation options in minutes without any commitment or upfront fees.

Secured credit cards

A secured card — where a cash deposit serves as the credit limit — does not carry balance transfer functionality, but it is one of the most reliable tools for rebuilding a credit score. Consistent on-time payments are reported to the credit bureaus and begin to repair the payment history component of the score.

Take control of your credit score. Compare Canada's top secured cards and find your perfect card. Some cards, like Capital One, offer a no-annual fee secured card with guaranteed approval. (Terms and conditions apply, see the Money.ca review).

Negotiating with your current lender

Some credit card issuers will negotiate reduced interest rates or temporary payment arrangements directly with cardholders who are struggling. It is worth calling before assuming the only path is a new product.

Looking for a new card? Compare hundreds of credit cards to find the option that fits your spending needs.

Licensed Insolvency Trustees and credit counsellors

For debt that has become unmanageable — not just inconvenient — a Licensed Insolvency Trustee (LIT) can assess whether a consumer proposal or bankruptcy is appropriate. Initial consultations are free. A non-profit credit counsellor can also create a debt management plan, which typically closes credit card accounts and sets a structured repayment schedule.

Steps to rebuild credit before applying

If a balance transfer card is your goal and your score currently sits below the threshold, here is the path to eligibility.

First, you need to recognize that payment history is repaired over time and being consistent, not by a single action.

Track and work at keeping all accounts current — this means making at least the minimum payment by the due date. Do this for three months and your score will start to go up. Keep in mind, lenders typically want to see at least three to six months of clean payment history before approving new credit.

Next, check how much credit you have versus how much you've used. This is known as credit utilization — or how much you've actually borrowed from your available credit lines. Ideally, you want to keep credit utilization below 35% of total available credit.

Ideally, aim to reduce balances owing before applying for new credit — even a modest reduction can boost your score enough to clear the 660 threshold.

Next, check your score before applying for any new credit product. It costs nothing to check and can prevent a declined application and a hit to your score.