Neo Financial poll showed many borrowers feel shut out by outdated credit rules
Nearly half of Canadians believe that building credit has become harder than it was for their parents, underscoring growing unease with a system many viewed as opaque and outdated, according to a new national survey from technology company Neo Financial.
The 2025 Credit Confidence Survey, conducted by research firm Fuse Insights, gathered insights from 1,050 Anglophone adults and pointed to a widening disconnect between consumer behaviour and traditional credit frameworks.
Neo described that gap as a “legacy lag,” where modern, real‑time financial habits meet institutions still relying on older models.
“When only half of the country feels the system is fair, it's not a consumer problem. It's a structural one,” said Andrew Chau, CEO of Neo Financial.
“We've identified this as the 'Legacy Lag' where consumer behaviour has modernized, but credit systems and traditional banks are stuck in the past and fail to reward real-time financial behaviour with real-time progress.”
Credit frustration met mortgage reality
In the survey, 46% of respondents said it is more difficult to build credit than it has been for their parents, and 36% believes the rules for accessing credit are deliberately unclear. Only 51% said the credit system works fairly for them.
The poll also highlighted what Neo called the “generational pinch,” with nearly half of Canadians saying credit building has become tougher; a “data deficit,” with 69% believing “real-life” bill payments such as utilities should count toward credit standing; and a “guidance gap,” with only 21% saying they knew exactly which actions would meaningfully improve their credit.
Fintechs test new paths to credit
Neo positioned its own platform as one answer to those frustrations. The company said its cardholders, many previously underserved by legacy banks, collectively grew their credit scores by 6.3 million points in 2025, unlocking $240 million in new credit limits.
“When we talked to them about what made the biggest difference, they kept pointing back to the same thing: the visibility and control they finally have over their money,” Chau said.
“Whether it's in-app credit score monitoring, credit utilization tracking, or personalized tips, the success is as much psychological as it is financial. Seeing their money clearly and feeling in control replaces financial stress with progress. This is how a modern financial system should work: recognize effort and help Canadians move forward faster.”
For newcomers, access to fair‑priced credit has been closely tied to quality of life, with many citing low limits, complex rules and higher borrowing costs as ongoing obstacles.
Separate analysis of Equifax data by Canada Mortgage and Housing Corporation showed that average credit scores among mortgage holders improved in recent years, even as many non‑owners remained in lower bands that restricted their options.
Make sure to get all the latest news to your inbox on Canada’s mortgage and housing markets by signing up for our free daily newsletter here.
