Your Drive.
Your Future.

What counts as excellent credit?

Your credit score is a number from 300 to 900 that the Canadian credit bureaus (Equifax and TransUnion) give you. Higher scores unlock lower rates and more lender choices.

• Excellent760–900
• Very good725–759
• Good660–724
• Fair560–659
• Poor300–559

Ranges are a general guide. Each bureau and lender uses its own cut-offs.

How rebuilding works

Late payments, collections or maxed-out cards pull a score down, but scores recover. Here is roughly what goes into yours:

• Payment history35%
• Amount owed30%
• Length of history15%
• New credit10%
• Credit mix10%

An auto loan paid on time every month is one of the strongest ways to rebuild, because payment history counts most.

Approximate weights. Late payments usually stay on a Canadian report for about 6 years.

What is a consumer proposal?

A consumer proposal is a legal deal, arranged through a Licensed Insolvency Trustee, to repay part of what you owe. It shows on your report as an R7 rating.

1. FileWith a trustee
2. PayUp to 5 years
3. CompleteCertificate issued
4. Cleared3 yrs after completion

Many lenders will finance during a proposal or right after it ends, especially with steady income and a record of on-time proposal payments.

It comes off your report 3 years after completion or 6 years after filing, whichever is sooner.

Financing after bankruptcy

Bankruptcy shows on your report as an R9 rating. It isn't the end of the road: specialized lenders finance customers who are discharged or still in progress.

1. FileWith a trustee
2. Discharge9 or 21 months*
3. RebuildOn-time payments
4. Cleared6–7 yrs later

Bring your discharge papers if you have them. If you're still in bankruptcy, your trustee may need to approve the loan.

*Typical for a first bankruptcy. Cleared about 6 years after discharge with Equifax; TransUnion may keep it slightly longer.

Newcomer programs

Arrived recently with little or no Canadian credit history? Newcomer programs from participating lenders look at your situation instead of a score.

• Your immigration document and its expiry date
• A Canadian job offer or recent pay stubs
• A valid driver's licence
• A down payment helps, but isn't always required

Programs and terms depend on your status, time in Canada and the lender.

Benefit & assistance income

Some of our lenders count government and benefit income toward your approval, on its own or combined with work income.

• Benefit statements or award letters
• Recent bank statements showing the deposits
• A payment that fits comfortably inside your monthly budget

Accepted income types and amounts vary by lender.

Buying your first car

No credit file yet is different from bad credit. First-time buyer programs focus on your income, job stability and down payment.

A common rule of thumb: keep the payment around 10–15% of take-home pay.

• Proof of income (pay stubs or an employment letter)
• Driver's licence and an insurance quote
• A down payment or a co-signer can help you get approved

How trade-in equity works

Your current vehicle can do a lot of the work toward your next one, whether it's paid off or not.

Positive equity works like a down payment. If you owe more than it's worth, many lenders can roll the difference into your new loan.

Ontario tax bonus: when you trade in to a dealer, HST is generally charged only on the difference. An $18,000 trade saves about $2,340 in tax.

Example figures only.