What TransUnion found
TransUnion surveyed 988 Canadian adults between April 29 and May 13, 2026. Five findings matter for borrowing:
- A quarter plan to apply for credit in the next year. TransUnion says that figure has not moved in four quarters.
- Half of them want a credit card; one in five wants a personal loan.
- One in five considered applying and did not. The top reasons, in order: did not need it, cost too high, credit history, found money elsewhere, income or employment.
- One in four expects to miss at least one bill in full.
- 86 percent put everyday inflation in their top three worries. Half say their income is not keeping up with it.
TransUnion's own summary: financial health improved "modestly but not decisively."
What we see in 79,000 applications
TransUnion asked people what they plan to do. Our data shows what people did. Three comparisons:
| TransUnion found | We see |
|---|---|
| Credit history stopped 22 percent from applying; income stopped 20 percent | Fair credit was the largest self-reported band in every reportable province except Saskatchewan, and low credit the second largest. The people the survey calls discouraged are most of who applies through a platform |
| Half of intending borrowers want a credit card | 71 percent of Smarter Loans personal loan applications from August 2025 to July 2026 asked for $1,500 or less |
| One in four expects to miss a bill | Paying off bills was the most common reason to apply across Smarter Loans personal loan applications from August 2025 to July 2026, and those applicants asked for $1,906 on average, among the smallest requests on the platform |
View as table
| Saskatchewan | 76% |
| Manitoba | 75% |
| Nova Scotia | 74% |
| New Brunswick | 73% |
| Newfoundland and Labrador | 72% |
| British Columbia | 72% |
| Quebec | 70% |
| Ontario | 69% |
| Prince Edward Island | 69% |
| Alberta | 69% |
Source: Smarter Loans personal loan applications, August 2025 to July 2026.
These are the same households at two moments, and the amounts they ask for are small: most requests are under $1,500, and the most common reason is a bill.
Our take
- Hesitation is about cost and eligibility, not need. When those households act, they act small: a few hundred to a couple of thousand dollars, for a bill.
- The "discouraged" borrower is the online market. More than two in five of the people who gave up cited credit or income. Lenders that underwrite on income exist for exactly them.
- Watch the alternative-data finding. 47 percent think their score would rise if lenders counted rent and short-term loan history. Instant bank verification already does that for online lenders, and it is part of why approval runs wider there.
What this means if you are borrowing
If cost stopped you last time, compare on APR and total cost rather than the advertised rate; our guide to how to find the best loan rates covers the method. If credit history stopped you, the bad credit loans market underwrites on income, and how to get a personal loan with bad credit explains what lenders check instead. And if you are one of the one in four expecting to miss a bill, the no-cost checks in are emergency loans a good idea come before any loan. Separately, TransUnion found 44 percent of Canadians were targeted by fraud in the past three months without becoming a victim; our guide to checking whether a loan company is legit is the three-minute version.
Frequently asked questions
What did TransUnion's Q2 2026 Consumer Pulse find?
A quarter of Canadians plan to apply for credit in the next year, a fifth considered applying and did not, one in four expects to miss a bill, and 86 percent name inflation among their top concerns. The survey covered 988 adults in April and May 2026.
Why do Canadians decide not to apply for credit?
In TransUnion's survey, the top reasons were deciding they did not need it, cost, credit history, finding another source of funds, and income or employment status.
How does that compare with who actually applies?
Across more than 79,000 Smarter Loans personal loan applications from August 2025 to July 2026, 71 percent were for $1,500 or less, most applicants described their credit as fair or low, and paying off bills was the most common reason. The people the survey counts as discouraged are the majority of who applies through a platform.
About this study
TransUnion's Consumer Pulse Study, Canada Q2 2026, surveyed 988 adults online between April 29 and May 13, 2026, in partnership with the research provider Dynata, in English and French. Quotas balanced responses to census dimensions of age, gender, household income and region. Results are unweighted and statistically significant at a 95 percent confidence level within plus or minus 3.1 percentage points. The study is published on TransUnion Canada's Consumer Pulse Study page, where the Q2 2026 Canada report is the current edition. Smarter Loans figures are drawn from personal loan applications between August 1, 2025 and July 31, 2026; amounts are requested at application, credit band is self-reported, and averages are used throughout. Our other reports from the same application data are collected at Smarter Loans Research.
Written by:
The Smarter Loans Editorial Team produces in-depth, original content to help Canadians navigate borrowing, credit, and personal finance with confidence.
