What credit score do I need for a personal loan in Canada?

Credit score tiers and what they unlock

Equifax Canada — one of the country's two credit bureaus — publishes the following score ranges. These are the tiers Canadian lenders actually use to bucket your application (Equifax Canada — What is a Good Credit Score?).

Canada's 35% APR legal cap (effective January 1, 2025)

Under amended Section 347 of the Criminal Code, no consumer loan in Canada can carry an APR above 35% — down from the previous 60% effective annual rate (~48% APR). Any non-payday lender quoting above 35% APR on a new loan is breaking the law (Department of Justice Canada — Criminal Interest Rate Regulations; McCarthy Tétrault — New Criminal Rate of Interest).

Payday loans are regulated separately by each province (typically $14–$17 per $100 borrowed for 14 days).

Credit score is one of three factors

Lenders weigh three things roughly equally:

• Credit score — your repayment track record
• Income stability — job tenure, type, verified gross monthly income
• Debt-to-income (TDS) ratio — total debt payments ÷ gross income, capped at ~44% by most lenders

A 620 score with $80K verified income and 25% TDS often beats a 680 score with $40K income and 45% TDS (FCAC — Choosing a Personal Loan).

How to qualify with a lower score

• Add a co-signer with 680+ credit — can drop your rate by 5–15 percentage points
• Offer collateral (vehicle, savings, GIC) — secured loans price 5–10 points lower than unsecured
• Show 6+ months of clean bank statements — alternative lenders weight this heavily
• Apply for less than you think you need — smaller loans approve at lower scores

Tip — get your odds first

Use LoanIQ's free AI Loan Advisor to see your estimated approval odds and rate band against 50+ Canadian lenders — no credit check required.