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600 Credit Score
A credit score of 600 is considered "fair" by most Canadian lenders. While you won't qualify for the lowest rates, many lenders actively work with this credit tier. Your approval odds improve significantly with stable income, low existing debt, and employment history. A co-signer or collateral can unlock better terms.
What This Means for You
With a 600 credit score, you're in a transitional zone — above the "bad credit" threshold but below the "good" tier where the best rates live. This means you have options, but strategy matters enormously. Most Big Five banks will consider applicants at 600, but their auto-approval systems often flag scores below 650, meaning your application may require manual underwriting. This isn't necessarily bad — it means a human reviews your full picture. Alternative lenders and credit unions are often your best bet at this credit level. Credit unions evaluate members more holistically, considering banking history and relationship length. Alternative online lenders have built models specifically for the 580–650 range, offering faster approvals than banks with rates that, while higher than prime, are significantly better than bad-credit lender rates. Your income stability is your biggest lever. A borrower with a 600 score and 3+ years of stable full-time employment will get significantly better terms than someone with the same score and recent job changes.
Your Action Plan
- 1Pull your free credit report from Equifax and TransUnion — check for errors that could be dragging down your score
- 2Pay down credit card balances below 30% utilization before applying — this alone can boost your score 20–40 points in 30 days
- 3Gather 3 months of bank statements and your 2 most recent pay stubs — lenders at this tier want to see income stability
- 4Apply to a credit union where you have an existing relationship first — they often offer the best terms for 600-range scores
- 5Consider a co-signer with good credit — this can move you from 'fair' tier rates (14–20%) to 'good' tier rates (9–14%)
- 6If you're self-employed, prepare your last 2 years of tax returns and 6 months of business bank statements
- 7Don't apply to more than 3 lenders within a 14-day window — multiple inquiries beyond this can further impact your score
Common Questions — 600 Credit Score
Whether you're buying new or used, LoanIQ analyzes your profile against Canadian auto lenders to find your best financing options. Auto loans in Canada range from $5,000 to $100,000+ with terms from 12 to 84 months. The vehicle itself serves as collateral, which means better rates compared to unsecured borrowing.
How It Works
Tell us about your vehicle
New or used, estimated price, and your down payment range.
Answer quick questions
Credit range, income, employment — 5 questions in under 2 minutes.
Get your AI estimate
See estimated approval odds, rate band, and monthly payment scenarios.
Apply when ready
Connect with matched auto lenders with your profile pre-filled for speed.
What Determines Your Auto Loan Approval
Credit score is the primary factor — directly affects both approval and interest rate
Income stability and debt-to-income ratio determine affordability assessment
Down payment size lowers the loan-to-value ratio and improves terms
New vs. used vehicle affects available rates — new cars typically get lower rates
Loan term length impacts monthly payment and total interest cost
Estimated Rate Bands
| Credit Tier | Estimated Rate Range | Approval Likelihood |
|---|---|---|
| Excellent (750+) | 4.99% – 7.99% | Very High |
| Good (700–749) | 6.99% – 10.99% | High |
| Fair (650–699) | 9.99% – 16.99% | Moderate |
| Below Average (600–649) | 14.99% – 24.99% | Moderate-Low |
| Poor (Below 600) | 19.99% – 29.99% | Low-Moderate |
* Rates are estimates based on typical lender criteria and respect Canada's federal Criminal Code interest cap of 35% APR (in force since January 1, 2025). Your actual rate may vary. These are not offers.
How to Get the Best Auto Loan Terms
A larger down payment (20%+) significantly reduces your rate and total interest cost — some lenders offer rate discounts for higher down payments.
Pre-approval from a lender gives you negotiating power at the dealership and protects you from dealer markup on financing.
Shorter loan terms (36–48 months) save thousands in interest compared to 72–84 month terms, even if the monthly payment is higher.
Frequently Asked Questions
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