How much can I borrow with my credit score?

Your credit score is a number that reflects your credit history. When you apply for a loan, most lenders will want to check your credit score — as far as a lender is concerned, the higher your score is, the more likely you are to pay a loan back on time.

But while your credit score is important, it’s far from the only factor a lender will consider when assessing your loan application. Keep reading to find out how much you can borrow with your credit score and financial situation.

Summary of credit score ranges

• 760-900: Excellent
• 725-759: Very good
• 660-724: Good
• 560-659: Fair
• 300-559: Poor

How much personal loan can I get with my credit score?

Your credit score is just one factor lenders will consider when assessing your loan application. While your credit score can provide useful insight into your financial history and creditworthiness, there are several other factors that can affect your ability to repay a loan. These include:

• Employment history. The lender will consider how long you’ve held your current job. If you’ve been steadily employed in the same job for a year or more, you’ll appear to be a much safer borrowing prospect than someone who has changed jobs 3 times in the past 12 months.
• Income. You’ll need to earn sufficient income to afford regular loan payments. A high income will help you qualify for larger loan amounts.
• Debts. Next, the lender will check if you have any existing debt. They will consider your debt-to-income ratio to determine how much you can afford to repay each month. A debt-to-income ratio of less than 40% will increase your chance of getting approved.
• Loan collateral. Offering an asset such as your car as collateral for a loan increases your borrowing power. It could also help you qualify for a lower rate.
• Net worth. Your net worth is your assets minus any debts you owe. Having a positive net worth — which means your assets are greater than your liabilities — increases your borrowing power. And if your net worth is more than the loan amount you want, your chance of getting approved goes up.
• Payment history. The lender will also look at whether you have a history of making on-time loan payments, if you have missed any payments and whether your debt has ever been sent to a collection agency.

Personal loan rates in Canada

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How much can I borrow with a 700 credit score?

700 is a good credit score, so you’ve got options when looking for a loan. But the amount you can borrow with a 700 credit score really depends on your overall financial situation and whether you opt for a secured or unsecured loan.

For example, you can borrow more if you use your house as collateral for the loan, but that’s also dependent on how much equity you’ve built up in your property. The more equity you have in your home, the more you can borrow.

If you go for an unsecured loan instead, the maximum loan amount you qualify for will be lower. That said, you can still borrow as much as $200,000 from a bank like CIBC if your finances are strong.

But the maximum loan amount you can get is also dependent on your monthly income and any existing debts you have. If you have a high income and a low debt-to-income ratio, you’ll be able to access higher loan amounts.

Related: Low interest personal loans

How much can I borrow with an 800 credit score?

Once again, the maximum loan amount you can get depends on much more than just your credit score. The good news is that 800 is categorized as an excellent credit score, so you have the potential to qualify for a lender’s maximum loan amount.

But the lender will need to be satisfied that you can afford repayments on a large loan, so they’ll take a close look at your monthly income, your existing debts and your employment history. Securing your loan with collateral will also increase your borrowing power.

What can I get approved for with a 600 credit score?

This depends on the lender. While 600 is a fair credit score, many banks and other traditional lenders will consider it to be similar to a bad credit score. This means your chances of getting approved with a traditional lender are low.

As a result, you may need to consider applying for a loan from an alternative lender. These lenders have more lenient eligibility requirements than banks, but your lower credit score means you’ll need to settle for a higher interest rate. You may also only be able to get approved for lower loan amounts, so taking steps to improve your credit score can boost your borrowing power.

Another way to increase your chances of approval is to apply for a secured personal loan. By providing an asset such as your home or car as collateral, you present less of a risk to lenders.

Related: Best bad credit loans in Canada

How much car loan can I get with my credit score?

Your credit score is one of several factors the lender will consider when assessing your car loan application. Other factors they will consider include:

• Your down payment. Providing a larger down payment means you need to borrow less and also shows lenders that you are a disciplined saver.
• Your income. A high income will help you qualify for a larger loan amount.
• Your debt-to-income ratio. The lender will check how much of your monthly income goes toward paying off existing debt. This will affect the size of the monthly car loan payment you can afford.
• Whether you have a cosigner. Having a cosigner with strong credit can reduce the risk for the lender and help you access a larger loan.

Can I get a car loan with a 600 credit score?

It’s possible to get a car loan in Canada with a 600 credit score, but not from all lenders. While you’ll struggle to get approved by a traditional lender, there are plenty of alternative Canadian lenders that offer bad credit car loans.

The bad news is that you’ll need a larger down payment than a borrower with excellent credit. You’ll also have to settle for higher interest rates, so your loan will cost more to repay in the long run.

Can I finance a car with a 620 credit score?

The loan amount you qualify for with a 620 credit score is not very different from how much you can borrow with a 600 credit score. Both scores sit in the fair category, and an extra 20 points isn’t going to have any major impact on your borrowing power.

Can I get a car loan with a 650 credit score?

You may be able to get a car loan from a wider range of lenders with a 650 credit score, as some lenders will class this as a good score. This means you’ll have more loan options to compare, so shop around for the best deal.

Once again, your income and debt-to-income ratio will be key factors that determine how much you can borrow. However, you’ll still need to settle for a higher interest rate than someone with excellent credit.

Can I get a 530 credit score auto loan with a cosigner?

Applying for a loan with a cosigner could improve your chances of getting approved. If the cosigner has strong credit, this will increase your creditworthiness in the eyes of the lender.

However, this doesn’t mean you’ll be able to qualify with all lenders, particularly traditional lenders with strict eligibility requirements. You will most likely need to apply to a lender that specializes in bad credit car loans. You’ll also need to expect to pay high interest rates of up to 30% in these circumstances, so make sure you’ll be able to afford to repay your loan before applying.

How much line of credit can I get with my credit score?

You’ll generally need an excellent credit score (or be on the higher end of the good range) to qualify for a line of credit. Credit of up to $50,000 or even $75,000 is available from banks and traditional lenders, while alternative and private lenders often have lower limits. Securing your line of credit with a savings account, property or Guaranteed Investment Certificate (GIC) can help you access a larger loan amount.

You’ll typically find it difficult to get a line of credit if you have bad credit. If you do qualify, however, expect to pay very high interest rates of up to 47.42%.

How much line of credit can I get with a 700 credit score?

A credit score of 700 could potentially see you qualify for a lender’s maximum line of credit amount. But the exact amount you can get will vary depending on factors such as your prior repayment history, income and debt-to-income ratio. Your history with the lender can also have an impact.

How much mortgage can I get with my credit score?

You will typically need a credit score of 680 or higher to qualify for a mortgage from a traditional lender in Canada. So if your score is above 700, you’ll typically have a good chance of getting approved.

The maximum amount you can borrow depends on several factors, including:

• The size of your down payment. A larger down payment means you’ll need to borrow less and also shows the lender that you are financially responsible.
• Your income. You’ll need sufficient monthly income to manage your mortgage repayments.
• Your gross debt service ratio (GDSR) and total debt service ratio (TDSR). Your GDSR is your principal, interest, taxes and 50% of condo fees (if applicable) divided by your gross income. The acceptable maximum is generally 32%. Your TDSR is all that’s included in the GDSR plus all monthly debt payments, such as credit cards and car loans. The acceptable maximum is generally 40%.
• Your employment history. Holding a steady job for a long period of time will increase your borrowing power.

Can I buy a house with a 600 credit score?

It’s difficult to get a mortgage with a 600 credit score, but it’s not impossible. While you typically won’t be able to qualify with a traditional lender such as a big bank, you’ll have a better chance of getting approved with some private lenders — but only if you meet certain requirements.

You’ll likely need to apply with a cosigner who has good to excellent credit, while putting down a large down payment upfront (such as 20%) will also help. The lender will also consider your monthly income and debt-to-income ratio closely, so paying off existing debts and earning a steady and sizable income will further boost your chances.

Bottom line

Your credit score is an important factor lenders consider when assessing your loan application, but it’s far from the only thing they look at. Your income, existing debt, repayment history and employment situation can all have an impact on how much you can borrow. If your credit history is less than perfect, take steps to improve your credit score to boost your borrowing power.

Frequently asked questions

• Can you have a 700 credit score with collections?

  Yes, it's possible to have a credit score of 700 with a collection account in your credit file, but it's not easy. Collection accounts have a substantial negative impact on your credit score, so you'll need to show a high level of financial discipline and stability to get your score back above 700.

• What is a good credit score in Canada?

  Credit scores in Canada range from 300 to 900. A credit score of 660-724 is considered to be good, while 725-759 is very good and 760+ is excellent.

• Will checking my credit score lower my score?

  No. Checking your credit score won't impact it as long as the credit bureau does a soft credit pull. However, if you apply for a loan and the lender performs a hard credit check, this will impact your credit score.

• What credit score do I need to get a personal loan?

  It depends on the lender and your overall financial situation. Traditional lenders will require good to excellent credit, but many private and alternative lenders offer bad credit personal loans. Lenders will also consider factors such as your income, employment history, debt-to-income ratio and repayment history before deciding whether to approve your loan.