Dec 7, 2025
Canadians are gearing up for holiday spending while still navigating higher day-to-day costs — but many say the most confusing part of their finances is the fine print on their credit cards.
A new national survey from Affirm finds that unclear terms and unexpected fees are making it harder for people to stay on budget and understand what they’re really being charged.
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Only 41% of Canadians say credit card terms and conditions are easy to understand, ranking them behind medication labels (72%), furniture assembly manuals (69%) and even tax forms (42%). That lack of clarity comes with real financial consequences. Nearly three in five Canadians (59%) say hidden or unexpected credit card fees have disrupted their ability to budget.
“Fairness and transparency should be the standard for every Canadian using credit,” Wayne Pommen, chief revenue officer at Affirm, said in a statement. “For too long, people have been accepting confusing terms and unexpected fees as part of the deal. Canadians deserve better.”
Confusion around credit cards is growing
Despite being one of the most familiar financial tools in the country — with 98% of Canadians reporting they’re comfortable using credit cards — many say they don’t fully understand how the products work.
More than one in three Canadians (36%) say credit cards don’t reflect their financial realities today, and many feel that interest rules, penalty fees and complex reward structures make it difficult to predict what they’ll owe.
Affirm’s survey found that 65% of Canadians use credit cards primarily for the rewards and points they offer. Yet many of these same cardholders carry balances from month to month, exposing them to compounding interest charges. According to a Bank of Canada Analytical Note (1), “in any given month, close to half of Canadians with a credit card carry a balance for at least two consecutive months.”
Fee structures also play a role in the confusion. According to Affirm, more than one-third of Canadians say hidden or unexpected fees occur at least occasionally, including trailing interest, annual fees, foreign transaction charges and late-payment penalties. These surprises are especially difficult to absorb as higher living costs continue to strain household budgets.
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Hidden fees are disrupting budgets as financial pressure builds
The growing complexity of credit card terms is landing at a time when many households are struggling to keep up with inflation and rising everyday expenses. More Canadians are relying on credit to manage cash flow — but fewer feel confident they understand exactly what they’re being charged for.
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Unexpected fees have become such a common budgeting disruptor that 59% of survey respondents say they’ve had to adjust their spending because of charges they didn’t anticipate. For younger households, the issue is especially pressing as many already face challenges with rent, grocery prices and debt repayment.
Pommen says Canadians are increasingly looking for clearer, more predictable payment tools — whether through credit cards, instalment products or other financing options. “Canadians deserve better, and that means financial tools built around clarity and trust, not surprises. Transparent, predictable payment options are proving that a better path is not only possible, it already exists”, he said.
As the holiday season ramps up, the survey suggests many Canadians may face added budget pressures if they rely heavily on credit cards without fully understanding the terms behind them. Trailing interest, variable-rate charges, retroactive interest on promotional rates and foreign transaction fees can all add up and silently erode purchasing power.
For those hoping to avoid surprises during the busiest spending period of the year, consumer advocates recommend reviewing statements carefully, tracking how rewards relate to fees and paying off balances in full whenever possible to avoid compounding interest.
Article sources
We rely only on vetted sources and credible third-party reporting. For details, see our editorial ethics and guidelines.
Bank of Canada (1)
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Steven Brennan is a freelance finance writer based in Vancouver, BC. He holds a BA and an MA from Maynooth University, Ireland. His work regularly appears at Canadian Mortgage Trends, Lowest Rates, Loans Canada and other Canadian and US brands, while also working as a ghostwriter for financial influencers.
