Credit cards: minimum monthly payments on the rise

Credit card holders, be warned: on your statements, the minimum periodic payment required will appear higher than in recent months.

As of Monday, the amount must now correspond to 3.5% of the balance on the card.

According to the Office de la protection du consommateur du Québec, this change will be in effect until July 31, 2023, after which the minimum payment will be increased by half a percentage point each year until it reaches 5% in August 2025.

In addition, individuals who have signed a credit card agreement since August 2019 must already make minimum monthly payments equal to at least 5% of the remaining balance.

Remember that it is the Consumer Protection Act that decides the percentage of the amount to be repaid that can be claimed.

The Office de la protection du consommateur indicates that it is better to pay your credit card balance in full each month to avoid applicable fees.

In its most recent report on credit market trends, Equifax Canada noted an increase of more than 18% in average monthly credit card spending in the first quarter of 2022 compared to the same period last year.

In addition, according to the company, the average credit limit for new cardholders is the highest it has been in seven years, now reaching $5500.