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Understanding Bad Credit
In Canada, a credit score is a three-digit number between 300 and 900. Anything below 650 is generally considered "non-prime," and anything below 560 is considered "poor" or "bad credit."
The 650 Threshold
At 649, you will likely be automatically declined by a traditional bank for an auto loan. The algorithms don't differentiate between 649 and 500—they only see "approve" or "decline."
What drags your score down?
Your credit score is calculated using specific weightings:
- Payment History (35%): A single 30-day late payment can drop an excellent score by up to 100 points. Collections and bankruptcies cause severe, long-term damage here.
- Credit Utilization (30%): If you max out your credit cards, your score plummets, even if you make your minimum payments on time.
- Credit History Length (15%): Closing old accounts hurts you by lowering the average age of your credit history.
- Credit Mix (10%): Only having credit cards (revolving debt) is worse than having a mix of credit cards and installment loans (like a car loan).
- Credit Inquiries (10%): Applying for too many credit cards or loans in a short period signals financial distress to the bureaus.
Bad credit doesn't mean you can't drive.
Our specialized lenders bypass the 650 credit threshold entirely, focusing instead on your monthly income.
See What You Qualify For