What Is A Credit Rating And Why Is It Important?

There are lots of factors in determining credit ratings.

A credit rating or score, also known as a Beacon or a FICO score is not included in a standard credit report.

Lenders make credit decisions based on this three-digit number that considers a variety of factors such as lending and borrowing history, ability to repay debt, past debts, future economic potential, and more.

A good credit rating boosts credibility and indicates a past track record of repaying loans on time. It assists banks and investors in deciding whether to approve loan applications for vehicles, homes, and other financial assets.


Your credit is poor and needs to be improved. You will have a difficult time being approved for any kind of loan. Eleven if you do find a lender, your interest rates could be as high as 50%.


This is a below average credit score. You’re probably only eligible for secured products. If you invest the time and effort into building your credit score now, you can have financial responsibility in your future.


This is considered good for financial lenders. You may not qualify for the lowest interest rates available, but maintaining a strong credit history will help you build your credit health.


Congratulations! You have one of the best credit scores possible. Expect to have a variety of credit options to choose from, so continue maintaining your financial habits.


What does this score on my report mean?

While credit scores in Canada range from 300 – 900, the average is around 650, according to TransUnion, though it varies from province to province. Once you’ve reached a credit score of 650 or higher, you’ll be able to qualify for more financial products. A credit score below 650 is going to make it hard to qualify for new credit, and anything you are approved for will likely come with very high-interest rates.

Your credit score is one number that can cost or save you a lot of money in your lifetime. But it’s up to you, the borrower, to make sure your credit remains strong so you can have access to more opportunities to borrow if you need to.

What Factors Your Credit Score?

Payment History

Lenders want to be sure that you will pay back your debt, and on time, when they are considering you for new credit.

Amounts Owed

This ratio examines how much of your available credit you’re using and can provide a snapshot of your reliance on non-cash funds. Balances that exceed 50% of your credit limit will harm your credit. Aim for balances of less than 35%.

Credit History

This includes the oldest credit account, the newest credit account, and the average age of all your accounts. You are a less risky borrower if you have a long credit history. Think twice about closing old accounts before applying for a loan.

Recent Inquiries

Your credit score can be determined by the number of times a lender or a business checks your credit score. Too many accounts or inquiries can indicate increased risk, and as a result, your credit score will suffer.

FAQ Section

Bad credit can stay on your record between six and seven years. However, because credit bureaus report the information differently, the exact time it takes for the information to disappear depends on the credit bureau and the type of information. Equifax Canada counts from the date the debt is first assigned to a collection agency.

Credit scoring models cannot generate a score without enough credit information. If you have little or no credit history, you probably will not have a credit score available.

Oftentimes car shoppers don`t have someone that can co-sign for them, so they are worried about applying for financing. At Get Auto Finance, we have several programs that can get you a car loan in Ontario without a cosigner! Special program for recent college/university graduates as well.

There is, unfortunately, no quick way to “repair” or “fix” your credit. The time it takes to rebuild your credit history is determined by the severity of your credit issues and how your credit history was impacted. It could take a few months to complete, or even years depending on the circumstances. In either case, there are immediate steps you can take to help restore your credit.

Absolutely! At Get Auto Finance, we encourage our customers to apply for a car loan even if they have subpar credit, and provide them with various opportunities to get on the right path to a good credit status.

It may take time and effort, but developing responsible habits now can help you grow your score in the long run.

A good first step is to get a free copy of your credit report and score, so you can understand what is in your credit file. Next, focus on what is bringing your score down and work toward improving these areas.

Here are some common steps you can take to increase your credit score.

  • Pay your bills on time. Because payment history is the most important factor in making up your credit score, paying all your bills on time every month is critical to improving your credit.
  • Pay down debt. Reducing your credit card balances is a great way to lower your credit utilization ratio, and can be one of the quickest ways to see a credit score boost.
  • Make any outstanding payments. If you have any payments that are past due, bringing them up to date may save your credit score from taking an even bigger hit. Late payment information in credit files include how late the payment was—30, 60 or 90 days past due—and the more time that has elapsed, the larger the impact on your scores.
  • Dispute inaccurate information on your report. Mistakes happen, and your scores could suffer because of inaccurate information in your credit file. Periodically monitor your credit reports to make sure no inaccurate information appears. If you find something that’s out of place, initiate a dispute as soon as possible.
  • Don’t close all your accounts. In most cases, no credit is worse than bad credit because lenders can’t predict what you’ll do if they give you a loan.

Second chance credit gives you the opportunity to get into a vehicle that you otherwise wouldn’t be able to because of less-than-perfect credit for reasons involving bankruptcy, consumer proposal, multiple payment defaults, and much more. At Get Auto Finance, not only will our team give you a fresh start, but they will also provide you with second chance credit options tailored to your needs.

Leasing a car can help you raise your credit score, but only if you are on time with your payments. When you first start the lease, you may actually see a slight drop in your score. This is because starting a lease opens a new account on your report. After about a month, this slight drop should bounce back up. If you pay your lease off early, this could also hurt your credit score. Stick to the terms of the lease and make your payments on time to really improve your credit.

Without a doubt! We have access to rates from various sources that vary in terms of the amount to finance, vehicle model, and year. Our Advisors will work with you to evaluate and select the best rates for your specific purchase requirements.

To get started, contact Get Auto Finance today.

Your personal Information is 100% Private! We do not share your personal information with anybody! Unlike other auto loan services, we are not in the business of selling or sharing your personal information with any other firm or entity.

Immediately after you submit your online application, we receive an email informing us you have done so. We then contact you by phone or email to review your application carefully and present it to the auto finance lender who is most likely to extend you credit in your situation. We never pull your credit report before contacting you and discussing all options.