Quebec increases minimum payment on credit cards to 5%

A new change has hit the wallets of Quebec credit card holders – and it could have implications for debt repayment practices for the rest of Canada. As of August 1, 2025, credit card holders in Quebec must pay at least 5% of their balance each month. The change is part of Bill 134, a law passed in 2019 to update consumer credit rules. For older cards opened before August 2019, the minimum started at just 2% and has been inching up by 0.5% per year to reach today’s 5%. Cards issued after August 2019, however, have been subjected to the 5% minimum from the start. 

According to Quebec’s Office de la protection du consommateur, this change is meant to help people clear debt faster and avoid letting balances linger. Credit card holders outside of Quebec currently aren’t affected (most provinces still allow minimums as low as $10.00 or 3%, whichever is higher). However, with credit card debt climbing nationwide, this move could catch the attention of other provinces watching for ways to tackle the problem.

Paying minimum payment on credit card: Does it really make a difference?

Paying just the minimum each month keeps your account in good standing, but it’s also the slowest and most expensive way to pay off debt. The higher your payments, the faster the principal shrinks, which means less interest over time.

Here’s an example of the cost of borrowing $5,000 when making minimum payments, using Ratehub’s credit card payment calculator:

Making minimum payments at 5%, compared to 4.5%, shaves 17 months off the repayment timeline and saves over $400 in interest — without paying more than the new minimum required.

Credit card debt is on the rise in Canada

Quebec’s move comes at a time when Canadians are leaning more on credit cards. According to TransUnion, credit card balances increased by 9.2% in 2024. The Bank of Canada has also found that people who carry a balance are more likely to face financial stress within six months compared to those who pay in full.

While there’s currently no indication other provinces plan to follow Quebec’s lead, if these debt trends continue, it wouldn't be a shock to see this type of reform start to spread across the country. 

Will making a larger payment improve my credit score?

Usually, yes. The more you pay, the lower your balance and the better your credit utilization ratio — that’s the percentage of your available credit you’re actually using. For example, if you have a $5,000 credit limit and a $2,500 balance, your utilization is 50%. Most experts recommend keeping it below 30%, and the lower, the better. 

A low utilization rate shows lenders that you’re managing your credit responsibly and aren’t stretched too thin, which can help improve your score over time. Making larger payments not only saves you interest but can also bring your utilization down faster, giving your credit profile a boost.

What if I can’t afford the 5% minimum?

If the higher minimum is a stretch, don’t ignore the problem. Missing payments can quickly lead to late fees, penalty interest rates, and credit score damage.

Instead:

• Contact your credit card issuer: They may be able to offer a payment plan.
• Speak with a non-profit credit counselling agency: They can help you restructure debt.
• Look at consolidation options like a personal loan, which may lower your interest rate and give you predictable monthly payments.

Also read: How to pay down credit card debt with a personal loan

How to pay down your credit card balance faster

If you’re serious about cutting your debt and reducing interest charges, consider these strategies:

1. Pay more than the minimum: Even an extra $50 a month can save years of interest.
2. Use balance transfer credit cards: These offer low or 0% introductory rates for a set period, giving you breathing room to focus on the principal.
3. Switch to a low interest credit card: A lower APR means more of your payment goes toward reducing the balance.
4. Consider a personal loan: Consolidating into a fixed-term loan can lower your rate and help you budget.
5. Automate extra payments: Set up recurring transfers to chip away at your balance without relying on willpower.

If you’re not sure how different payment amounts will affect your timeline, try Ratehub’s credit card payment calculator to compare scenarios.

The bottom line

Quebec’s new 5% minimum payment rule is meant to help people pay off credit card balances faster and cut down on interest charges. No matter where you live, the bigger lesson is that sticking to the minimum is the slowest and most expensive way to tackle debt. Paying more when you can, switching to a low-interest card, or using a balance transfer offer can help you get debt-free years sooner. 

If you’re looking for a card that better fits your needs, you can find your best credit card with Ratehub’s CardFinder and compare options in minutes.

Also read:

• Understanding credit card debt
• How to pay off your credit card and reduce interest charges
• How to pay down your credit card debt with a personal loan