Optimism climbs to 45% even as fraud attempts and cost pressures squeeze households
Half of Canadians say their income is not keeping pace with inflation, even as a growing share turns more hopeful about the year ahead.
The split runs through TransUnion's Q2 2026 Canada Consumer Pulse Study, an online survey of 988 adults conducted between 29 April and 13 May by the credit bureau with research provider Dynata.
Optimism about household finances over the next 12 months rose to 45 percent from 40 percent a year earlier, while 86 percent of respondents ranked inflation among their top three financial concerns, up three percentage points year over year.
Incomes are improving for some, though the study found the gains have yet to translate into broad relief.
One-quarter of consumers reported higher household income over the past three months, up six points from a year ago, and 24 percent said their finances were better than expected so far this year, the highest reading TransUnion recorded over the past year.
The share describing their finances as worse than planned eased to 36 percent from 40 percent.
Many Canadians "are beginning to see improvements in their financial outlook" and have adjusted to sustained uncertainty, said Fabian, TransUnion Canada's senior director of financial services research and consulting.
They keep deciding "through an affordability lens," he said, and are growing "more intentional with how they spend, borrow and manage their financial health" in a higher-cost environment.
That restraint showed up in spending.
The study reported that 51 percent of consumers cut back on discretionary spending such as dining out, travel, and entertainment, while 26 percent cancelled subscriptions or memberships.
As per TransUnion, 11 percent increased discretionary spending, a three-point gain year over year that the firm described as an early sign some households are regaining flexibility.
Borrowing appetite held steady rather than retreating.
One-quarter of Canadians plan to apply for new credit or refinance existing credit over the next year, unchanged from a year ago, with credit cards the preferred product for roughly half of prospective borrowers.
Younger consumers led demand, as 48 percent of Gen Z and 37 percent of millennials indicated they planned to apply.
Among the one in five consumers who considered applying for credit but did not, 29 percent decided they did not need it and 26 percent cited borrowing costs.
Roughly one in five held back because they believed they would not qualify on credit history or income and employment grounds.
"Consumers continue to recognize the value of credit, but they're carefully weighing borrowing costs, eligibility and their financial needs before making decisions," Fabian said.
Fraud exposure also climbed.
TransUnion reported that 44 percent of consumers were targeted by fraud in the past three months without becoming victims, and 20 percent said they had been notified of a data breach, up four points year over year.
Phishing-led attacks grew to 45 percent of attempts among those targeted.
Monitoring habits are shifting in response.
Two in five consumers now check their credit report at least monthly, up three points from a year ago, with fraud detection and accuracy overtaking score improvement as the main reasons.
Even so, one-third of consumers took no action on cybersecurity concerns over the prior 60 days, and 51 percent of that group said they were unsure what steps to take.
