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What's a Good Credit Score For a Car Loan in Canada?

What's a Good Credit Score For a Car Loan in Canada?

You can access car loans with any kind of credit score in Canada.


What will vary will be the interest rates and any fees or guarantees that may be levied on that loan.


But what's a good credit score for a car loan? This article will answer that very question. Let's get started!

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Good Credit Score for a Car Loan

Not so long ago, you used to require a good credit score to access any kind of mainstream credit.


Fortunately, since then, lenders have awakened to the fact that not everyone has a perfect score even if they work hard, pay their debts and do everything by the book.


In Canada, a good score for a car loan is regarded as being 650 and over.


The two credit agencies who operate here, TransUnion and Equifax, decide scores slightly differently so your score may not be the same with either one.


The Difference in Lenders

Even though the two credit agencies may think you have a good score, lenders also apply their own criteria.


This is why you may be refused credit or have to pay higher interest even if the agencies have scored you highly.


Credit is a complex subject where every lender goes about things in a slightly different way.


Your score is influenced by a number of things including:


  • Payment history
  • Credit use
  • Credit history
  • Public records
  • Credit inquiries


Your payment history will show whether you pay your debts on time or not and will have a large influence over your score.


Credit History Influence on Car Financing

Your credit use looks at whether you have or have had credit before and how you performed.


Your credit history looks at previous loans or credit and looks at whether you paid on time.


Your presence in public records looks at the voter register and other records while credit inquiries looks at how many credit applications you have made recently.


All of these things will influence your credit score. They are an important factor of your score and I will cover each in more detail next week.


You can check your credit score at any time through TransUnion and Equifax or with third-parties who provide access.


It is free to check your score and you can access as many times as you like. You can even have it emailed to you.


If you’re looking for a car loan, there is no need to obsess over credit scores.


There is no such thing as a perfect score and Car Nation Canada works with all kinds of people, in all kinds of situations, with all kinds of credit scores.


If you want to learn more about auto loans or would like to buy a car on credit, contact one of our dealerships today!


If you're ready for a car loan in Southern Ontario, we'd love to help with that! simply fill in the form below to get started.

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