What Credit Score Do You Need to Finance a Car in Canada?
So you’re ready to buy a car—but you're not sure if your credit score is good enough to get approved for a loan. You're not alone. For many Canadians, especially first-time buyers or those rebuilding their credit, this is one of the biggest questions before stepping into financing.
Here’s the short answer: you don’t need perfect credit to get a car loan in Canada. But your credit score will affect everything from approval odds to interest rates to monthly payments—so it pays to understand how it all works.
Let’s break it down, and show you how to finance a vehicle—whether your credit is excellent, average, or in need of a little TLC.
What’s a Good Credit Score for Car Financing?
In Canada, credit scores range from 300 to 900. Here’s a general breakdown when it comes to car loans:
760 – 900: Excellent credit — Best used car loan rates and low interest
725 – 759: Very good — Easy approval with competitive rates
660 – 724: Good — Qualified for standard loans
560 – 659: Fair — May still qualify but expect higher rates
300 – 559: Poor — You’ll need a bad credit car loan from a non-traditional lender
The magic number? 660 or higher tends to be the cutoff for "prime" financing. Below that, you may face higher interest or require a larger down payment. But even scores in the 500s can get approved—especially with lenders that focus on flexible auto financing.
How Your Score Affects Used Car Loan Rates
Your credit score influences more than just whether you’re approved—it plays a big role in the rate you’re offered. Higher scores = lower risk for the lender, which = lower interest for you.
A small bump in your credit score can make a big difference in your loan. For example:
Good credit (700+): You might score a rate as low as 5–7%
Average credit (mid-600s): Expect around 9–12%
Poor credit (under 600): Could range from 13–20% or more
Want to see how those numbers affect your budget? Plug them into a car loan interest calculator or a monthly car payment calculator to get a realistic look at what you'll pay over time.
Can You Still Finance a Car with Bad Credit?
Yes—you absolutely can.
While banks may turn you down, there are lenders in Canada that specialize in bad credit car loans, offering more flexible terms, especially if you have steady income or a co-signer. Platforms like AutoPlug in BC are built for this exact situation.
They not only help people with low or no credit get approved, but also work to match you with lenders offering realistic payments and supportive terms. You can even refinance a car loan later if your credit improves and you want better rates.
How to Improve Your Approval Odds
No matter your score, here are a few ways to boost your chances of getting approved and landing a manageable payment:
Check your credit report before applying
Use a monthly car payment calculator to plan realistically
Make a larger down payment to reduce your loan amount
Consider a shorter loan term (lower interest overall)
Shop around for the best used car loan rates
And always compare offers using a car loan interest calculator—not just based on the monthly payment, but on the total cost of the loan over time.
Final Thoughts
You don’t need a perfect score to finance a car in Canada—but knowing where you stand gives you an edge. Whether you’re working with good credit or navigating a bad credit car loan, the right tools and the right lender can make a world of difference.
Want help calculating your payments or exploring flexible loan options in BC? AutoPlug is a great place to start—especially if you’re looking for real support, fast approvals, and a path forward no matter what your credit looks like today.
