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What credit score is regarded as ‘good’ for a car loan?

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What credit score is regarded as ‘good’ for a car loan?

600 × 399
You can access car loans with any kind of credit score in Canada. From low or no scores right up to top scores. What will vary will be the interest rates and any fees or guarantees that may be levied on that loan. But what is regarded as a ‘good’ score to access the widest range of auto loan options?

Car Nation Canada can help anyone get a car loan. It doesn’t matter when you have a top score or a low score, we can help secure competitive rates for anyone.

A good credit score
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 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.

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. 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!

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