Minimum credit score for a car loan in Canada: what lenders say and what it costs
Quick summary
There is no universal minimum score for a car loan in Canada. A credit union says so directly. A higher score can mean a lower rate and better terms, and a lower score can mean paying more interest and searching longer for a lender. To see what a rate does to the total you repay, try the box below or read low credit score options with or without a job.
Checked November 12, 2026. Main source: Innovation Credit Union: What credit score do you need for a car loan? (dated October 22, 2026, read November 10, 2026). See all 4 sources.
Key facts
- Minimum score
- No universal minimum
- Source: Innovation Credit Union, October 22, 2026
- Score the credit union calls strong
- Roughly 630 to 660, the high end of fair
- Source: Innovation Credit Union, October 22, 2026
- Where loans come from
- The dealer arranges one, or you get one from your own bank or credit union
- Source: FCAC, October 14, 2025
- Long loans
- Terms of 84 to 108 months can lead to owing more than the car is worth
- Source: OMVIC, November 7, 2023
- Auto score
- TransUnion sells lenders a separate auto score
- Source: TransUnion Canada page, no date
What lenders say about the minimum
Innovation Credit Union says there is no universal minimum score that acts as a cut-off for car loans. It says a score of roughly 630 to 660 points to strong creditworthiness, at the high end of the fair band. A higher score can make lower rates and better terms easier to reach. A lower score may mean you pay more interest over time and search longer to find a willing lender.
That is one credit union's view. Each lender sets its own rules, and we did not find an official number.
Source: Innovation Credit Union: What credit score do you need for a car loan? (dated October 22, 2026, read November 10, 2026).
Lenders may use a different score
TransUnion Canada says traditional scores generally give a six to twelve month view. It describes a separate auto score for lenders that uses a longer window of payment history on auto loans and other retail credit. Its goal is to help lenders judge people who would otherwise be declined. The page gives no score ranges.
This means the number you see in an app may not be the one a car lender uses. The TransUnion page is undated and its data is from 2017 and 2018, so treat it as background.
Source: TransUnion Canada: Are you using the right score for auto financing? (page shows no date, uses data from 2017 and 2018, read November 10, 2026).
Where you can get a car loan
- At the dealer. The FCAC says dealers usually arrange the loan with the carmaker's finance company, a bank or credit union, or an independent finance company.
- At your own bank or credit union. The FCAC says you may be able to get a car loan or line of credit directly from your own institution.
- The FCAC says you may be able to negotiate a better rate with your bank if you have a bank account, a mortgage and a credit card in good standing.
Source: FCAC: Car financing options (modified October 14, 2025, read November 12, 2026).
What to know about dealer financing
OMVIC, the Ontario dealer regulator, says your credit score largely decides the rates and terms you are offered, and that people with good credit can usually get the best rates or negotiate them. It also says many loan applications can lower your credit score.
OMVIC says dealers can reach many lenders, which can help. It also says dealers often earn a fee called a reserve, and that higher-rate loans usually pay dealers more. It suggests asking which lenders received your application, and getting any spoken promise written into the contract.
OMVIC says to compare the monthly payment, the price of the car and the total cost of borrowing, not only a low payment, and to contact your own bank first so you have an offer to compare.
Source: OMVIC (Ontario's vehicle dealer regulator): Car loans (last modified November 7, 2023, read November 12, 2026). OMVIC covers Ontario dealers. Other provinces have their own regulators, so check yours.
Same car, three loan lengths
OMVIC warns that loans of 84 to 108 months can leave you owing more than the car is worth. Here is what length does to the cost of a $25,000 loan at 15%. These are our calculations with equal monthly payments. The rate is made up to show the effect and is not an offer.
| Length | Monthly payment | You repay in total | Interest |
|---|---|---|---|
| 36 months | $867 | $31,199 | $6,199 |
| 60 months | $595 | $35,685 | $10,685 |
| 84 months | $482 | $40,523 | $15,523 |
Going from 36 to 84 months lowers the payment by $385 a month but adds $9,324 in interest.
What a $25,000 car loan costs at three rates
These are our calculations with equal monthly payments over 60 months. The rates are made up to show the effect and are not offers. Your own rate depends on the lender and on you.
| Rate | Monthly payment | You repay in total | Interest |
|---|---|---|---|
| 7% | $495 | $29,702 | $4,702 |
| 15% | $595 | $35,685 | $10,685 |
| 25% | $734 | $44,027 | $19,027 |
The difference between the 7% and 25% rows is $14,325 in interest on the same car. That is why asking more than one lender matters.
Try your own offer
Put in the price, the rate and the length from your offer. Add any flat fees.
Car loan cost
You borrow $25,000 and repay $35,685 in total.
That is $594.75 a month. The interest alone is $10,685.
Every $1 you borrow costs $1.43 to repay. The cost of borrowing is $10,685.
Nothing you type here is saved or sent. These are estimates. Your lender's contract is the final word, and it may add fees or insurance.
Steps before you apply
- Get your free credit report and check it for mistakes.
- Ask more than one lender, such as a bank, a credit union and a dealer, for the rate and every fee in writing. Ask the dealer which lenders received your application.
- Ask your own bank first so you have an offer to compare with the dealer's.
- Ask whether on-time payments are reported to Equifax and TransUnion.
- Compare the total you repay, not only the monthly payment. A longer loan lowers the payment and raises the total.
Check what you learned
3 quick questions. Nothing is saved or sent.
1. Is there one minimum credit score for every car loan in Canada?
2. According to the FCAC, where can you get a car loan besides the dealer?
3. On a $25,000 loan at the same rate, what does a longer loan do to total interest?
Questions people ask
What is the minimum credit score for a car loan in Canada?
There is no universal minimum. A credit union says no single score acts as a cut-off. Each lender sets its own rules.
Can I get a car loan with a low credit score?
Possibly, but a lower score may mean a higher rate and a longer search for a lender. Compare the total you repay for each offer.
What score do car lenders use?
It may not be the score in your app. TransUnion says lenders can use a separate auto score. Ask the lender which score it uses.
How much more does a higher rate cost?
On a $25,000 loan over 60 months, our arithmetic shows $4,702 of interest at 7%, $10,685 at 15% and $19,027 at 25%. The rates are made up for illustration.
Where can I get a car loan?
The FCAC says through the dealer, or directly from your own bank or credit union. Compare both.
Is a longer car loan a good idea?
It lowers the payment but costs more interest. On $25,000 at a made-up 15%, 84 months costs $9,324 more interest than 36 months. OMVIC warns that 84 to 108 month loans can lead to owing more than the car is worth.
What is a dealer reserve?
OMVIC says it is a fee dealers often earn on the loan, and higher-rate loans usually pay dealers more. Ask which lenders received your application.
Does a car loan help my credit score?
It can if the lender reports on-time payments to the bureaus. Ask the lender before you sign.