How your credit score affects your car loan

Credit score ranges in Canada (Equifax/TransUnion)

ScoreTierWhat to expect 760+ExcellentBest rates, lowest monthly payments 725–759Very GoodTier 1 lender rates, minor premium 680–724GoodStandard rates, most lenders approve 620–679FairHigher rates, larger down payment may help Below 620Needs workSubprime lenders, significantly higher rates

How much does it matter in dollars?

On a $35,000 Nissan Rogue financed over 60 months:

• At 5.9% APR (good credit): $672/mo → $40,320 total
• At 9.9% APR (fair credit): $748/mo → $44,880 total

That's $4,500 in extra interest for the same vehicle — a real number worth knowing before you walk in.

How to check your score before shopping

Equifax and TransUnion both offer free annual reports

Credit Karma and Borrowell offer free ongoing monitoring

• Checking your own score is a *soft pull* — it doesn't affect your score

What affects your score most

1. Payment history (35%) — Never miss a payment 2. Credit utilization (30%) — Keep card balances below 30% of your limit 3. Credit age (15%) — Don't close old accounts 4. Credit mix (10%) — Having an installment loan (car) alongside revolving credit (cards) helps 5. New inquiries (10%) — Limit applications to 2–3 in a 14-day window (bureaus treat multiple auto loan inquiries as one)

Improving your score before you buy

Give yourself 3–6 months to:

• Pay down card balances
• Resolve any derogatory marks
• Avoid new credit applications

A 30-point score improvement can drop your rate by 1–2 percentage points — easily $1,000+ in interest savings.