Here’s the Credit Score You Need to Get a Loan


If you have a low credit score, that doesn’t mean you can’t get a car loan. In fact, people get approved for loans at credit scores that would genuinely surprise you.

If you think you’re in a bad spot, you’re far from the worst. Believe us.

A poor credit score does not mean you can’t get approved for a car loan. You just have to know your options. This includes where to apply. People with all types of credit secure car loans with My Ride every day.

First Thing’s First: the Difference between a Credit Score and a Credit Report

A credit report is a document that logs your past and current debts.

There are seven parts to a credit report. Together, these factors tell a lender about your history as a borrower.

#1 Outstanding Debts

This includes any debt you have that is currently outstanding. This could include a phone bill, credit card, mortgage, etc..

#2 Payment History

This tells a lender about your previous payment behavior. Payment history includes both on-time payments and late or negligent ones.

#3 Balance-to-Limit

This includes information regarding how much credit you’ve been approved for and how much of it you’re currently using. Credit bureaus recommend keeping your credit balances under 30% of your total limit.

#4 Length and History of Accounts

This details how long you’ve had existing loans for and how long it took for you to pay them back in full.

#5 Type of Credit Accounts

This includes information about the types of loans you’ve had in the past. Credit Bureaus recommend holding a variety of loans.

#6 Amount of Accounts

This tells lenders how many times you’ve borrowed money.

#7 Recent Inquiries

This details how many times you’ve pulled your credit. There are two types of inquiries. A soft inquiry is when you request your own report or your bank does in order to approve a credit limit increase. A hard inquiry is when you apply for new credit, like when you apply for a new car loan.

In combination, all of these factors make up your credit report. A lender then uses this information to decide whether or not they will approve you and if so, at what interest rate.

Your credit score, on the other hand, is a three-digit number that tells a lender how reliable you are as a borrower. It takes your credit report and, essentially, grades you as a borrower. The higher your score, the more likely you are you get a loan.

What Credit Score Should You Have for an Auto Loan?

Credit scores range from 300 to 900. 300 is assigned to people establishing credit for the first time and 900 is reserved for those who have the best credit. 650 is considered an average score.

Excellent credit is pretty rare and takes years to establish. Good credit makes applying for loans easier and usually means you’ll secure a more reasonable interest rate. The average score of 650 rides the line between good and fair credit. Finally, a score of 559 or lower is considered poor credit.

When applying for a car loan, it’s recommended you have a credit score of 630 or higher. However, if you have a credit score that’s lower that doesn’t mean you can’t get approved. Especially with My Ride. We specialize in fair-to-poor credit approvals.

What Should You Do If You Have Bad Credit?

The worst thing a person with bad credit can do is assume they don’t have options. Nothing could be further than the truth. If your credit score falls below 630, you can still get approved for a car loan.

Working with customers who have little or bad credit is our specialty. With over nine years of experience under our belts, we know the hurdles bad credit customers face. We also know how to conquer them. After all, we have 30,000 satisfied customers to prove it.

Banks often turn people away when they have poor credit. This is the reason people often assume they’re out of luck if their credit score is low. Good news? We don’t need to work with the banks. We use our own money, and play by our own rules. Which means you can get approved even if your credit is less than desirable.

Are You New to Canada?

We’ve helped thousands of first-time buyers get into vehicles with loans they can afford. We understand that new Canadian residents often have low credit scores because they haven’t had time to establish their credit yet. The problem is, a low credit score makes securing a loan difficult, thus making establishing credit hard.

Seems silly, right? We think so too.

That’s why we work with over 20 vehicle manufacturers, many of which offer terrific programs that get first-time buyers into new cars at rates they can afford. If you’re just starting out in the credit world, don’t stress. We’ve got solutions designed just for you.