What is the minimum credit score for a car loan in Canada?

You'll usually need a credit score of at least 650 to qualify for a car loan with decent interest rates. However, you may be eligible to qualify with a lower score if you're willing to pay higher rates. You'll likely have difficulties getting approved for any loan if your credit score is below 500.

What is a credit utilization ratio?

Your credit utilization ratio is the amount of debt you've borrowed divided by the amount you have access to. This is an equation that gets used to assess your creditworthiness. Ideally, your credit utilization ratio should be lower than 30% if you want to improve your credit score for a car loan.

How long does it take to rebuild credit?

It can take anywhere from months to years to rebuild credit in Canada. The amount of time it takes will depend on what your credit score is currently and what strategies you use to build your credit. If you're worried you may not have the minimum credit score needed for a car, you can start rebuilding your credit at least a few months before you're ready to apply.

Can I get a copy of my credit report for free?

Yes. There are some reputable websites that offer free copies of your credit report. Additionally, you can request free paper copies of your credit report from one of Canada's two major credit bureaus, Equifax or TransUnion.

Why is my credit score different with each credit bureau?

Each credit bureau uses different calculations to determine your credit score. That said, your scores should be similar with both bureaus. If your scores are wildly different, there could be an error on your credit report that you need to rectify. Lenders typically only work with one of the two credit bureaus to pull your information and determine if you have the minimum credit score needed for a car.