Commonly asked questions about bad credit

A lot of Canadian consumers have asked us a lot of questions in regards to fixing their bad credit, so we have decided to list some of the most common ones below.

How long does it take to fix a bad credit rating in Canada?

There is no simple answer to this, but if you’ve had blemishes on your credit history and you’ve taken action to rectify and address them by making your weekly payments and paying off your balance, you will be on the right track. By Canadian law, negative information can only stay on your credit report for a specific amount of time. As soon as you start paying off your debt, the sooner your credit score will start to repair itself.

Can I fix my credit score in 30 days?

Depending on the severity of your credit situation, it is possible to restore some of those valuable credit points within 30 days. If you’re put into a scenario where you need to get approved for a loan in a month’s time, following the above steps should help.

How is my credit score calculated in Canada?

Your credit score in Canada is based off information which appears on your credit report. In Canada, your score falls within a range between 300 and 900; the higher the better. Specific variables are used to determine where exactly you fall between 300 and 900 points. Things such as your payment history, how much debt you have, your credit/debt limit, how long you have had credit for, types of credit used, and how often you are applying for new credit.

What is considered bad credit?

Since the credit range in Canada is between 300 and 900, we have broken down the ranges into buckets:

750 – 900: Scores that fall between this upper tier range, are considered excellent. With a credit score between 750 and 900, you should have no problem getting approved with an optimal interest rate.

650 – 749: Scores that fall within this second bucket are considered “good” and you should be able to get approved with low-interest rates from lenders.

575 – 649: This is the middle tier bucket which implicates that you have average, or fair credit. You should be able to get approved most places, but perhaps with a higher interest rate than someone in the above two buckets.

500 – 574: If you fall within this range, you need to do some work and start repaying your debts on time. Getting approved through a lender is still possible, but you can expect higher interest rates as you are classified as “higher” risk.

300 – 499: You either have no credit so to speak of or have had a very poor history of debt repayment. Most lenders will decline your application if you fall within this bucket, or offer you loans with high-interest rates.

bad credit score range

What is the minimum credit score for a car loan approval?

There is no minimum credit score for a car loan approval, however, the higher credit score you have, the better interest rate you will receive from a lender. Many lenders will approve your auto loan despite having poor credit, or no credit, as long as you meet other criteria such as your monthly income, and having job stability.

Does requesting a copy of my credit report hurt my credit?

Despite what many think, requesting a copy of your credit report for your own information will not hurt your credit score. This is known as a “soft inquiry” and is perfectly acceptable. Other companies might make inquiries about your credit history as well in specific cases, such as an employer doing a background check, or getting pre-approved for a mortgage. These will also not harm your credit.

A “hard inquiry” is different and will impact your score. This is when a lender or financial institution uses your credit report to make a decision based off whether or not they will lend to you. These hard inquiries remain on your credit report but will disappear over time.

Should I use a credit repair company?

According to the Canadian Office of Consumer Affairs (OCA), establishments with the sole purpose of helping you repair your credit, have no additional power to change what is on your credit report. So be wary, and use your best judgment when paying a company to re-establish your credit. Basically, anything these companies can do, you can do yourself.

What do the numbers mean on my credit report?

Reading an Equifax or TransUnion credit report can be a bit tricky as there are a series of numbers which reflect the state of your credit. In a nutshell, “R” refers to Revolving Credit. The biggest example of this is a credit card.

The “I” type refers to Installment Credit, like for a car loan, or a mortgage, that you pay at set intervals for a specific amount each month.

Here is a quick look at the numbers on your credit report using Revolving Credit or “R” as an example:

The loan is too new to rate. It can also mean that the loan has been approved, but not yet used.

Account is paid up to date within the last 30 days.

Account received payment more than 30 days ago, but less than 60.

Account received payment more than 60 days ago, but less than 90.

Account received payment more than 90 days ago, but less than 120.

The account is over 120 days past due with the last payment received.

This rating does not exist.

Payments are being made through special arrangements to settle debts on the account.

A repossession has taken place.

The account has been placed in collections and is considered a “bad debt.”

As you can see, the lower on the scale, the better, with the exception of R00 as it doesn’t really qualify, and R6 as it does not exist.

For a more in-depth list of frequently asked questions, visit our FAQ page. can help repair you with bad credit car loans and repair your credit in the process  Our job is to connect you with financing options at the lowest rate possible, so you can pick up a vehicle at a dealership that is close by. After filling out an application,


By | 2017-08-09T18:21:13+00:00 April 19th, 2017|Credit, The411|

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