{"id":874079,"date":"2020-08-18T11:35:22","date_gmt":"2020-08-18T15:35:22","guid":{"rendered":"https:\/\/www.finder.com\/ca\/?p=874079"},"modified":"2026-03-09T18:29:32","modified_gmt":"2026-03-09T22:29:32","slug":"car-loans-credit-check","status":"publish","type":"post","link":"https:\/\/www.finder.com\/ca\/car-loans\/car-loans-credit-check","title":{"rendered":"What credit score is needed for a car?"},"content":{"rendered":"

The minimum credit score needed for a car in Canada will vary by lender. Traditional lenders (like banks and credit unions) tend to have a credit score requirement starting at 600 or 650, while online car loan providers typically have a minimum credit score requirement between 300 to 580.<\/p>

Even if you have the lowest possible credit score, there are still lenders willing to offer financing, although your loan\u2019s interest rate will be higher. Your credit score is just one of several factors car loan providers use to decide whether or not to approve you for financing to buy a car and what kind of loan terms you can qualify for.<\/p>

Minimum credit scores needed for car loans in Canada<\/h3>

Below is a breakdown of the minimum credit score requirements to buy a car from different Canadian car loan lenders.<\/p>
<\/th>Minimum credit score<\/th>Other basic requirements<\/th><\/th><\/tr><\/thead>
\"CarsFast\"<\/td>300<\/strong><\/td>Min. income of $2,000 \/month, 3+ months employed<\/td>
\r\n
\r\n \r\n Go to site\r\n <\/a>\r\n\r\n <\/div>\r\n <\/section><\/td><\/tr>
\"Loans<\/td>300<\/strong><\/td>Min. income of $1,800 \/month, 3+ months employed<\/td>
\r\n
\r\n \r\n Go to site\r\n <\/a>\r\n\r\n <\/div>\r\n <\/section><\/td><\/tr>
\"Canada<\/td>300<\/strong><\/td>Min. income of $1,500 \/month, 3+ months employed<\/td>
\r\n
\r\n\t\t\t\t\t \r\n\t\t\t\t\t\tRead review\r\n <\/a><\/div>\r\n\t\t\t\t <\/section><\/td><\/tr>
\"Clutch\"<\/td>580<\/strong><\/td>3+ months employed; maximum 1 bankruptcy; only available in Ontario, New Brunswick and Nova Scotia<\/td>
\r\n
\r\n \r\n Go to site\r\n <\/a>\r\n\r\n <\/div>\r\n <\/section><\/td><\/tr><\/tbody><\/table>
<\/center>
<\/center>
Compare car loans<\/a><\/center>

How minimum credit scores for car loans in Canada work<\/h3>

Any score above 650 is considered to be good or excellent credit, and is generally accepted by most car loan providers as the minimum credit score needed for a car. As your score dips below 650 or 600, you may find you need to pay higher interest rates or have a harder time qualifying for auto financing to buy a car.<\/p>

You can apply for your credit score by filling out an application with one of Canada\u2019s two major credit bureaus, Equifax or TransUnion, or from other companies online<\/a>. The graphic below outlines the different tiers that the credit score needed for a car loan could fall into.<\/p>

What is a good credit score in Canada?<\/h4>

A good credit score in Canada ranges between 660 up to 724. In general, credit scores can fall between 300 at the lowest and 900 at the most. Your credit score will differ slightly depending on the bureau, which means your Equifax score will probably be slightly different from your TransUnion credit score. While not set in stone, the general credit tiers are:<\/p>

\"Credit<\/p>

Why is my credit score important to car loan lenders?<\/h3>

Your credit score helps your lender determine how likely you are to pay back your car loan on time. Their assessment of your credit score to buy a car affects whether you can qualify for financing and how much interest you\u2019ll pay. Learn more about what interest rates you might have to pay based on what credit score is needed for a car loan in the table below.<\/p>

Likelihood of car loan approval by credit score<\/h4>
Credit score<\/th>Eligibility for loans<\/th>Approximate interest rates<\/th><\/tr><\/thead>
Below 560<\/strong><\/td>You may have trouble qualifying for a car loan from traditional lenders if your credit score is below 500. If you do manage to get approved, you\u2019ll likely have to pay very high interest rates<\/td>15% to 29.99%<\/td><\/tr>
560 \u2013 660<\/strong><\/td>Having a poor to fair credit score indicates to lenders that you\u2019re more likely to default on your loan. You should be able to qualify with scores in this range, but you\u2019ll pay higher interest rates.<\/td>9% to 29.99%<\/td><\/tr>
Above 660<\/strong><\/td>A score of 660 is usually the credit score needed for a car loan. This score should get you approved for most types of financing with lower interest rates.<\/td>0% to 10%<\/td><\/tr><\/tbody><\/table>

How does your credit affect your access to car loans?<\/h3>

Your credit score affects 2 different elements of your car loan application:<\/p>