How To Improve Your Credit Score

Life happens. Unexpected bills, missed payments. Maybe you’re brand-new to building a credit file. You’re not alone. And sometimes this can impact your ability to get a loan approved. Credit scores can be confusing and yet they have a big impact on shaping your future. But there is good news and a way forward.

What is a credit score?

That 3-digit 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.

So, what can you do to improve your credit score?

Improving your score takes time. Even small steps can make a big impact over time. And remember—consistency is important. Lenders are looking for reliability.

1. Check your credit report. Mistakes happen. Dispute inaccuracies that could be dragging your score down.
2. Pay on time, every time. Payment history is the biggest factor in your credit score. Even minimum payments count towards your rating.
3. Avoid adding new debt. Applying for new credit creates “hard inquiries,” which can temporarily drop your score.
4. Lower your balances. High credit balances relative to your limit can hurt your score. The goal is to keep credit utilization at 30% or less.

I need a car loan, how can I get approved with a low credit score?

Yes, we can help! In fact, some lenders we work with specialize in low credit score 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.

We’ll help rewrite your credit story

It’s easier than you think to get started! Reach out to The Car Loan Lady today. 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.