You’re not alone if you constantly worry about your credit score and its repercussions on your financial life. Your credit score affects your life in many ways, including your ability to receive a car loan.
Knowing whether your credit score is within the acceptable range to get a car loan can be confusing.
Fortunately, we’re here to help.
At Get Approved Canada, we want to get you the lowest interest rates and best payment options for your car loan. We’ll discuss the different ranges of credit scores and what each means for getting a car loan.
For more questions about auto loans, call Get Approved Canada at (844) 584-5624.
Typical Credit Score Ranges
Credit scores in Canada can range from 300 to 900. However, there are five sections within that range that lenders use to determine the interest rates you can get on a car loan. Those five sections, or subranges, are 300-559, 560-659, 660-724, 725-759, and 760-900.
Lenders consider a credit score between 300-559 poor. If your credit score is in this range, that doesn’t mean you can’t get a car loan.
However, you’ll find it more challenging than those with credit scores in higher ranges. Furthermore, any loan offers you receive will likely have very high interest rates.
The reason for the higher rates is lenders consider you a higher risk. If you’re able to improve your credit score, the risk factor will decline, and you’ll start to see lower rates.
If your credit score is fair, or between 560 and 659, you may still have some challenges finding a car loan. You may have to seek an alternative online lender and pay relatively high interest rates. However, near the top of this range, you may receive car loan offers from banks, credit unions, and other larger lenders.
A credit score anywhere from 660 to 724 is considered good. With a score in this range, you’ll likely receive several loan offers. Therefore, with various loan offers, do your research to find the lowest rates possible and save money.
725-759: Very Good
Once you reach the “very good” range of credit scores, the search for car loans becomes much more manageable. Most lenders will quickly approve you for a loan with a relatively low-interest rate. Regular payments will further improve your credit score.
Anyone in the “excellent” range of credit scores should have no issues getting approval for a loan with a low-interest rate. Those with credit scores of 760 to 900 are considered minimal risk. So, lenders are more than happy to offer a car loan to people with excellent scores.
Car Loans in Ottawa
At Get Approved Canada, we work with auto lenders to find you the best interest rate and financing offer. When you need a car loan in Ottawa, we’re the ones to trust.
For questions about a lease buyout or loan terms, call Get Approved Canada at (844) 584-5624.