This content is provided through a paid partnership between Moving2Canada and Scotiabank.
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Did you know that myths and misinformation about credit scores could be holding your score back?
These are 7 common myths about credit scores that you may have heard:
Myth: Checking your credit score hurts or lowers your score.
Myth: Carrying a balance on your credit card helps to improve your score.
Myth: No debt = a good credit score.
Myth: High income guarantees a good credit score.
Myth: You have one credit score.
Myth: Paying bills on time = good credit score.
Myth: Increasing your credit card limit hurts your score.
Get Started with Support from Scotiabank
Scotiabank offers tools and support to help you build your credit and manage your finances in Canada. Scotiabank advisors can support you in understanding banking basics, setting financial goals and improving your credit score.
Now, are you ready for some facts about credit scores in Canada?
Fact 1: Soft checks don’t affect your credit score. You can safely use certain apps and platforms that keep an eye on your credit score and history without risking your score. For example, if you are a Scotiabank client, you can use the Scotiabank app or online platform to check your score through the TransUnion Credit View1 service for no additional cost.
Fact 2: Your credit utilization affects your score – it's important to understand it. Carrying a balance on your credit card won’t help improve your score, credit utilization is what matters. Keeping your balance at or below 30% of your total credit limit is recommended. Paying your balance in full each month can help here, too, and is a good practice.
Fact 3: Your credit limit doesn’t directly affect your credit score. It only impacts your score indirectly due to the impact it can have on credit utilization.
Fact 4: You can have a low credit score if you have no debt. Credit scores reflect how well you manage credit. So, if you have never used credit, your score may be low – even if you’re good with money. This is especially common in the first years in Canada.
Fact 5: Your credit score isn’t directly related to your income. That said, a higher income can help manage your debts and qualify for credit, so it can have an indirect influence on your score.
Fact 6: There are two credit bureaus in Canada, Equifax and TransUnion, and your scores with each can differ. It's worth checking both to get a complete picture. With a Scotiabank personal account, you can access the TransUnion Credit View service1 for no additional cost and start building your credit score today.
Fact 7: Your credit score is based on a number of factors, including your payment history. So, while missing a payment can impact your score, other facts influence it too. These include the length of your credit history, your credit utilization, and the types of credit you carry.
Tip: Work with your bank on your financial health
Scotiabank is here to support you through your financial journey in Canada. You can book a no-obligations appointment with a Scotiabank advisor to learn more about credit and financial products that may support you as you settle and build your financial life in Canada. Or, if you're ready to get started, open an account online.
Warm Wishes,
The Moving2Canada team, sponsored by Scotiabank
Legal Disclaimer
This article is provided for information purposes only. It is not to be relied upon as investment advice or guarantees about the future, nor should it be considered a recommendation to buy or sell. Information contained in this article, including information relating to interest rates, market conditions, tax rules, and other investment factors are subject to change without notice and The Bank of Nova Scotia is not responsible to update this information. All third party sources are believed to be accurate and reliable as of the date of publication and The Bank of Nova Scotia does not guarantee its accuracy or reliability. Readers should consult their own professional advisor for specific investment and/or tax advice tailored to their needs to ensure that individual circumstances are considered properly and action is taken based on the latest available information.
1 Your TransUnion Credit Score and other TransUnion Credit Score services are provided by TransUnion Interactive, Inc. (“TransUnion”) and are made available to you as a customer of The Bank of Nova Scotia (“Scotiabank”) at no additional charge. Accessing your TransUnion Credit Score will not impact your Credit Score. Scotiabank and its affiliates are not responsible for the TransUnion Credit Score or any of the information provided to you through TransUnion’s Credit Score services.
To access your TransUnion Credit Score, Scotiabank will share your personal information such as name, address and date of birth with TransUnion so that TransUnion can identify you and provide your Credit Score. Your information will not be used or disclosed by TransUnion for any other purposes. The TransUnion Credit Score service is subject to certain terms and conditions that can be viewed here Terms of Use.
