How to Improve Credit Score in Canada With 3 Easy Steps

How to Improve Credit Score in Canada With 3 Easy Steps

Posted on October 6, 2022

Are you looking for a low-interest car loan? The only way you can qualify for the most competitive car loans is to have a credit score over 680.

If your score falls under that level, you can still get approved for a car loan today, but we’ll show you how to improve credit score in Canada with 3 simple steps.

Start by accessing your credit report

You need to start the process by signing up for free access to your credit report with apps like Credit Karma and Koho.

These apps give you direct access to your credit report and score, plus they can recommend credit facilities that help you save money and make the most of your life.

Now that you have access to your credit score and report, you can start looking through the report for potential issues.

Equifax credit report

These apps will make suggestions on what you can do to raise your credit score, be sure to follow those suggestions.

Something that could be weighing down your credit score is carrying too much debt. A high credit utilization rate, meaning you are carrying a large amount of debt in relation to your available credit, will bring your score down.

Try to keep your debt to the available credit limit to 40% or less, and your credit score should improve.

Credit Utilization Rate. Source: Experian

Another thing you should do to improve credit score in Canada is to not apply for credit facilities unless you actually need them. Each time you apply for credit, it causes a “hard inquiry,” which brings down your credit score.

Fortunately, your score can quickly recover from this, but you need to pump the brakes on applying for credit until you truly need the facility.

Increase your income to qualify for a larger car loan

If you are carrying too much debt, work on paying it down by taking a second job. Many Canadians are working sideline jobs in this gig economy to make ends meet.

By taking a sideline income, you will be able to qualify for a larger car loan which can help you realize your goal of buying your dream car sooner than originally anticipated.

How to get a great car loan with average credit today

While you improve your credit score in Canada over the long term, you can still get an amazing car loan today, but you will need expert help.

Your local car dealership is able to secure a great car loan at the most competitive interest rate based on your finances.

What you need to do is contact the dealership and begin discussing your unique situation.

The dealership has tremendous negotiating power with prospective lenders, which gives you the advantage when trying to get the best bang for your buck.

Now that you know how to get a great car loan, why not contact the dealership now?

We will use all our skill and experience to deliver the lowest possible auto loan rates, guaranteed. Contact Car Nation Canada Direct to learn how we can help.