What credit score do you need for a car loan?

There is no single answer to the minimum credit score required for a car loan: every lender applies its own criteria. Large financial institutions favour strong files, while some dealers and alternative lenders are far more flexible.

Understanding your credit score

Your credit score is assigned by a credit bureau, Equifax or TransUnion in Canada, which gathers your financial data to assess your ability to repay your debts. It moves up or down over time, depending on how you manage your finances.

How to check your score

Both bureaus let you consult your credit file for free. You can also sign up for their monthly monitoring to follow how your score evolves and quickly fix the mistakes that drag a score down.

The factors that influence your score

• Late payments: by far the heaviest factor;
• Credit cards near their limit with minimum payments only;
• Several loans at once (instalment plans for furniture or electronics), which inflate your debt ratio;
• The length of your history: a long-standing account reassures lenders;
• The number of credit applications you make;
• Your stability: frequent job changes or regular moves can raise questions.

How to improve your score before applying

If your score is not where you want it, nothing is lost, but rebuilding your credit takes consistency:

• Pay every bill on time, before the due date;
• Limit new credit applications;
• Vary your types of credit rather than piling up the same one;
• Keep your card balances under 35% of the available limit.

What score do lenders expect?

The score alone does not decide everything: income, job stability, self-employment and your debt ratio all weigh in too.

• 630 and up: banks approve most applications; above 700, every door opens;
• Below 630: banks hesitate, but specialized lenders offer second chance credit at slightly higher rates, and third chance solutions exist even after a bankruptcy or for tougher files.

Average credit score in Quebec, by age group

Age	Average credit score
18-25	692
26-35	697
36-45	710
46-55	718
56-65	737
65 and over	750

Getting a car loan with a low score

That is exactly our specialty. Whatever your file looks like, a financing option can match your needs and your budget, and a well-managed car loan is one of the most effective tools to bring your score back up, since every payment is reported to the credit bureaus.

Apply online: an advisor reviews your file and calls you back within 24 hours, with no obligation.