What Credit Score Is Needed for a Car Loan in Canada?
Approval thresholds vs best-rate thresholds — what score you need at each lender tier, and what actually changes at each boundary.
Last reviewed: May 2026
Key Facts
- Min Approval Score
- 300 (deep sub)
- Best Rate Score
- 720+
- Tier Boundary
- 660 near-prime
- Lender Network
- 21+
What Credit Score Is Needed for a Car Loan in Canada?
Approval requires no minimum — lenders have approved at 300+. What changes with your score is the rate tier: 720+ earns prime rates (6–9%), 660–719 near-prime (9–14%), 580–659 subprime (14–22%), below 580 deep subprime (22–29%).
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Approval vs Best Rate: Two Different Questions
The question "what score do I need?" actually has two answers — and they are very different numbers. If the question is "what score do I need to get approved," the answer is that there is no hard floor in practice. Specialized subprime lenders approve borrowers at every credit score level, with the right income, down payment, and vehicle selection.
If the question is "what score do I need to get a good rate," that is a more meaningful question — and the answer is 660 for near-prime access, 720 for prime competition. Those two score thresholds are the real boundaries where your rate changes meaningfully. Knowing which question you are actually asking helps you plan your strategy correctly.
Score Thresholds by Lender Tier in Canada
| Tier | Score Range | Approval | Best Rate? | Typical Rate | Key Factor |
|---|---|---|---|---|---|
| Deep Subprime | 300–579 | Yes — specialized programs | No | 22–29% | Income stability and down payment weighted most heavily |
| Subprime | 580–659 | Yes — many subprime lenders | No | 14–22% | Employment history and vehicle selection matter significantly |
| Near-Prime | 660–719 | Yes — prime and subprime lenders | Near-best | 9–14% | Strong approval odds; income verification still standard |
| Prime | 720+ | Yes — all lenders compete | Yes | 6–9% | Lenders compete for your file; you hold the leverage |
Rate ranges are illustrative. Actual rates depend on lender, vehicle, term, income, and full credit profile.
What Changes at the Key Score Boundaries
At 580: subprime lender access
Crossing from deep subprime (below 580) to subprime (580+) opens a significantly larger pool of specialized lenders. Below 580, the file requires more compensating factors — stronger income, larger down payment, or a co-signer. At 580+, more lenders compete for your application on income alone.
At 660: near-prime threshold
Crossing 660 opens access to prime lenders like TD Auto, RBC, and CIBC in addition to specialized subprime lenders. You go from a one-tier market (subprime only) to a two-tier market. The rate difference is typically 5–8 percentage points — on a $20,000 vehicle, that is $3,000–$5,000 in total interest over 72 months.
At 720: prime competition
At 720+, lenders compete for your business rather than evaluating your risk. Banks, credit unions, and specialty lenders all want prime-tier borrowers. Rate offers improve, conditions relax, and your negotiating position strengthens. If you are at 700, investing a few months in credit improvement before applying can be worth thousands.
Score vs. Full File: Lenders Look at Both
Frequently Asked Questions
What credit score do I need to get approved for a car loan in Canada?
There is no hard floor — approvals have been issued at scores as low as 300 with the right income and down payment. The score that matters is what tier you fall into: prime lenders approve at 660+, subprime specialists serve 580–659, and deep subprime programs cover 300–579. The score needed for approval is different from the score needed for a good rate.
What credit score do you need to get a good rate on a car loan in Canada?
A score of 720+ puts you in the prime tier where lenders compete aggressively for your business and rates are typically 6–9%. A score of 660–719 (near-prime) earns rates in the 9–14% range. Below 660, you are in subprime territory where rates start at 14% and rise based on the specifics of your file.
Does a 600 credit score qualify for a car loan in Canada?
Yes. A 600 score is in the subprime tier — above deep subprime but below near-prime. Many specialized lenders serve this range. Expect rates in the 14–22% range, with income verification and potentially a down payment required. The exact offer depends on income stability, employment tenure, vehicle selection, and down payment.
Does checking my credit score hurt my chances of getting a car loan?
Checking your own score (a 'soft pull') has zero impact. The hard inquiry made when a lender checks your credit does affect your score slightly — typically 3–7 points. However, all auto loan inquiries made within a 45-day window count as a single inquiry under Canadian credit bureau rules. Applying through a dealership that shops 21+ lenders generates one inquiry, not 21.
What credit score do I need to get a car loan from a bank in Canada?
Major banks (TD, RBC, BMO, Scotia, CIBC) typically require a minimum of 650–680 for auto loan approval, with better terms starting around 720. Banks are prime lenders — they do not typically compete for subprime borrowers. If your score is below 640, your best path is through a dealership with access to specialized subprime lenders who serve that tier by design.
How is the credit score needed for a car loan different from what a mortgage needs?
Auto loan approval thresholds are substantially lower than mortgage thresholds. Conventional mortgages in Canada require a minimum 680 score at most lenders, with 720+ for best rates. Insured mortgages (under $1M, less than 20% down) require minimum 600 at federally regulated lenders. Auto loans, especially through dealership networks with subprime lenders, approve at 300+. The secured nature of auto loans — lender can repossess the vehicle — makes them more accessible at lower scores.
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