Credit Scores Explained

Understanding Your Number—And Making It Better
Credit scores can feel like a mystery—especially when one three-digit number can shape your entire future. Your score determines whether you get approved for a car loan, the interest rate you’ll pay, and even how some lenders perceive your past. But no matter where your score is now, there are ways to improve it.

What does a credit score actually mean?
A credit score is a general measure of your responsibility as a borrower. The better you manage your debts, the higher your score—and the more likely lenders are to work with you. Credit scores generally fall into these ranges:

* 760 and above (Excellent). You’ll have access to the best rates and terms.
* 725-759 (Good). Approval is likely with favorable conditions.
* 660-724 (Fair). You’ll probably get approved but may face higher rates.
* 560-659 (Poor). Approval becomes trickier, and rates climb.
* Below 559 (Very Poor). It’s not impossible, but lenders will want extra reassurance.

Have a poor or very poor credit score? You’re not alone. Life happens—unexpected bills, missed payments. Maybe you’re brand-new to building credit entirely. The good news? There’s a way up. 

How to improve your credit score
Improving your score isn’t a quick fix. Small steps can make a big impact over time. And remember—consistency is important. Lenders are looking for reliability.
1. Pay on time, every time. Payment history is the biggest factor in your credit score. Even minimum payments count.
2. Lower your balances. High credit card balances relative to your limit hurt your score. Aim to keep credit utilization under 30%.
3. Avoid new debt. Applying for new credit creates “hard inquiries,” which can temporarily drop your score.
4. Check your credit report. Mistakes happen. Dispute inaccuracies that could be dragging your score down.

Can I get a car loan with a low credit score?
Yes, you can! In fact, some lenders specialize in bad credit loans. They’re able to look beyond the number. They’ll consider your income and employment, plus recent payment history, to match you to the right loan. From there, it’s time to rebuild your credit by proving you’re a trustworthy borrower.

Rewrite your credit story
Your credit score is only a snapshot of your current financial situation. And like any snapshot, it can change. And it’s easier than you think to get started! Reach out to The Car Loan Lady today. We work with lenders who focus on what’s possible, not just your past. There’s a loan that fits your needs and helps you move forward. We’ll help you find it. Reach out today at caroline@thecarloanlady.ca or 647 407 7487 and discover what’s possible! No matter where you’re starting from, there’s always a way forward. © The Car Loan Lady 2025, all rights reserved.