How does the balance on my credit card affect my credit score?

Your credit utilization (the amount of credit you use compared to your available credit limit) has a significant effect on your credit score. High levels of debt may signal to potential lenders that you are spending more than you can afford.

In general, it’s a good idea to keep your credit card balance at no more than 35% of your credit limit. For example, if you have a credit card with a $1,000 limit, try to keep the outstanding balance below $350.

To keep your credit utilization low, you have several options:

  • Apply for a credit limit increase
  • Set up automatic payments to your Scotiabank credit card with AutoPay
  • Set up recurring bill payments to your credit card
  • Set up recurring transfers to your credit card

Scotia advisors are available in every branch to help you understand, plan, and execute the right financial plan. If you’d like to speak to a Scotia advisor about managing debt, give us a call at 1-866-698-5927.

Last updated November 1, 2023