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What Credit Score Is Needed For A London Car Loan?

What Credit Score Is Needed For A London Car Loan?

Planning to buy a car in the near future? Checking your credit score in advance of car loan preapproval? Want to know what kind of credit score is needed to get a car loan in London? You’re in the right place!


Credit scores range from 300 to 900 in Canada and you can usually access finance across the range. The cost and type of finance can vary along across that range though.


What’s a good credit score in London?


There are five main bands of credit score that cover the 300-900 range. They are:


  • Poor 300 – 560
  • Fair 560 – 660
  • Good 660 – 725
  • Very Good – 725 – 760
  • Excellent – 760 – 900


Different sources can give different credit scores so watch where you check. We recommend using TransUnion or Equifax, the two main credit bureaus as they should give the most accurate figure.


What Credit Score is Needed to Get a London Car Loan?


In theory, you can get a car loan with any credit score. Scores in the Poor category can often be new adults with no credit, newcomers to Canada or those who have had serious financial issues in the past.


For the first two cases, there are specialist programs for young borrowers and recent immigrants.


There are also programs for those recently bankrupt or who have less than perfect credit. Our London car loan team will be able to help with that.


For scores below 600, you’ll need a bad credit car loan. They work in the same way as a standard loan but will charge a higher interest rate. The application process is a little more robust, so you should expect to prove everything.


It’s all about risk


For credit scores over 660, you can usually access standard car loans from mainstream lenders as well as our car loan team. You will have the most choice and some better interest rates.


The higher your credit score, the lower the interest rate you’ll pay.


You get a higher credit score for being good with credit. Therefore, those with higher scores present less of a risk to lenders. Those with lower scores are not viewed as being so good with debt so are regarded as higher risk.


Even if your low credit score was not your fault, you will still be regarded as a higher risk. It’s a limitation of the system with no practical workaround as yet.


If you have bad credit, you have options. You can use a specialist bad credit car loan, use a co-signer with a higher credit score or put more money down as a deposit. Much depends on your situation.


Whatever your credit score, whatever your situation, we can help!


When you’re ready for a car loan, get in touch with the London auto loan experts at Northway Ford for great deals on auto finance.


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Categories: Car Loan

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