What credit score do I need to buy a car?

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Navigating your auto loan terms in Canada hinges on your credit score. Scores of 660 or more are your ticket to fair rates, with banks leaning on 600-650 while online lenders might accept 300. A score of 720+ scores you exceptional rates. If you’re between 670-719, you’re still in a strong position. Below 560? Expect hefty interest. Reach out via phone, text, or live chat if you have any questions.

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Credit Score To Buy A Car Question

What credit score do I need to buy a car? I’m curious what kind of credit score is required to qualify for an auto loan and get decent terms.

From: Anonymous Question
Location: Markham, Ontario (ON)
Category: credit rebuilding

Credit Score To Buy A Car Answer

Buying a car in Canada involves understanding how your credit score impacts the loan terms you’ll receive. If your score is 660 or above, you’re in a good spot for getting fair auto loan rates. Banks usually look for a score around 600-650, while online lenders might give a nod to scores as low as 300. Hit the sweet spot of 720 or higher, and you’re cruising with excellent rates. A range between 670-719 means you’re still in good standing, enjoying competitive rates and better terms. But if you find yourself below 560, brace for those steep interest rates.

From: Insider Scott

Office of the Superintendent of Bankruptcy (OSB) Answer

To buy a car and qualify for an auto loan with decent terms, a credit score of at least 660 is generally recommended. A score in this range is often considered good and can help secure better interest rates. However, individual lenders may have different requirements, and it’s best to check with them directly for their specific criteria. The legal documents referenced do not explicitly detail credit score requirements for auto loans, as these are typically set by financial institutions rather than governed by specific legislation. If you’re looking to improve your credit score, you might want to consider effective strategies for credit rebuilding.

From: OSB Helper

Related Questions to Credit Score Needed To Buy A Car

Here are the top 5 most frequently asked questions related to the credit score needed to buy a car, based on current trends and online search data:

1. What is the minimum credit score needed for a car loan?

A credit score of 660 or higher is generally considered ideal, but some lenders may accept scores as low as 300[1][5].

2. Can I get a car loan with bad credit?

Yes, you can qualify for a car loan with bad credit, but you may face higher interest rates or need to work with subprime lenders[1][4][5].

3. How does my credit score affect my car loan interest rates?

Your credit score significantly impacts the interest rates you’ll pay; higher scores typically result in lower interest rates, while lower scores lead to higher rates[1][2][5].

4. What are the credit score ranges for different types of car loans?

Credit scores are categorized as Poor (300-559), Fair (560-659), Good (660-724), Very Good (725-759), and Excellent (760-900)[5].

5. Can I get approved for a car loan with a credit score below 630?

Yes, you can still get approved, but you might need to work with subprime lenders or face less favorable loan terms[2][4][5].

If you have a question about debt see our debt questions or ask your own debt related question.

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