Knowing your credit score will give you a good idea of how lenders will look at you when you apply for credit. A good credit score can open the doors to more financial opportunities. But what kind of credit score do you need to be considered to have ‘good’ credit and access all the financial products available? More specifically, is 650 a good credit score in Canada?
Key Points:
- A 650 credit score in Canada is categorized as ‘fair’.
- Having a credit score of 650 could make it slightly more difficult to get approved for loans and credit products from traditional lenders.
- A 650 credit score can also mean higher interest rates and lower credit limits or loan amounts.
- If you’re unable to qualify for a loan with a conventional lender, there are alternative lenders out there who cater to those with less-than-perfect credit.
What Does It Mean To Have A 650 Credit Score In Canada?
A 650 credit score in Canada is considered ‘fair’, though it’s just slightly below the ‘good’ credit score threshold. With a score around 650, you may still be able to get a loan with a traditional lender, though you may have more difficulty.
A credit score somewhere in the range of 620 to 680 is the general minimum level that lenders accept, though the exact credit score required for various loan products will vary from lender to lender. So, while you may be able to qualify for credit with a score of 650 with one creditor, this credit score may not be high enough for others.
Credit Score Ranges In Canada
Credit scores in Canada range from 300 to 900. Here’s how they are broken down and rated:
| Credit Score Rating | Credit Score Range |
| Excellent | 760+ |
| Very Good | 725–759 |
| Good | 660–724 |
| Fair | 560–659 |
| Poor | 300–559 |
Based on this chart, a 650 credit score falls under the “fair” category.
What Can You Get With A 650 Credit Score?
A fair credit score could make it more challenging to get approved for various financial products. If you do manage to get approved, you could be facing higher interest rates and lower loan amounts.
That said, a 650 credit score is right at the cusp of ‘good’ credit, so you may have luck with some lenders.
Getting A Personal Loan With A 650 Credit Score
Banks may still consider you for a personal loan with a 650 credit score. However, it may still be more difficult with a credit score within the ‘fair’ category. Further, the interest rate you’re charged and the loan amount you can get will depend on your income, debt, and your recent payment history.
If you can’t get approved for a personal loan from a bank with a 650 credit score, there are still other options. Alternative lenders and bad credit lenders will also consider lending to someone with lower credit scores. However, despite qualifying, you’ll likely be subject to higher interest fees and could be required to put up collateral or have a co-signer.
Getting A Credit Card With A 650 Credit Score
Most credit card providers may require a credit score of at least 660. Premium cards that offer better rates and more perks may require a credit score that’s even higher. If you apply for a credit card with a score of 650, you may still be able to qualify, though you’d likely be limited in your options and card features.
If you’re unable to qualify for a traditional unsecured credit card, there are other options available that you may be able to access, like secured credit cards, store credit cards, and prepaid credit cards.
| Best Store Credit Cards In Canada | Learn More |
| Best Secured Credit Cards In Canada | Learn More |
| Best Prepaid Credit Cards In Canada | Learn More |
Getting A Mortgage With A 650 Credit Score
Most mortgage lenders, especially lenders like banks, require borrowers to have a minimum 680 credit score. That said, there’s still a possibility to get approved with a 650 credit score, though the lender may charge higher interest or approve you for lower loan amounts. Some lenders may even require a co-signer to reduce the loan risk.
Ultimately, credit score requirements are up to the individual lender. Further, credit scores aren’t the only factor considered when approving a mortgage application. Lenders will also look at your income, debt level, recent payment history, and debt-to-income ratio. So, if these other factors are strong, some lenders may be willing to work with borrowers with credit scores in the 650 range.
Getting A Car Loan With A 650 Credit Score
Car loans are usually easier to obtain with lower credit scores because the car itself acts as security, or collateral, for the lender. However, if the loan is a large amount of money, the lender might require a co-signer or a larger down payment. Most car loans require credit scores that are a minimum of 630, so 650 should put you in a position to obtain a car loan.
If your credit scores are even lower than 650, there are lenders that specialize in financing for borrowers with low credit that can help you. However, this usually comes with high interest rates and costs, so it’s best to consider ways to improve your credit score first if you can.
Getting A Job With A 650 Credit Score
Some employers may check your credit report when you apply for work, particularly for jobs that involve handling finances or sensitive data. Your credit score will give an employer an idea of how trustworthy you’ll be as an employee and whether you’re capable of managing financial responsibilities.
A 650 credit score is not bad, but it’s still somewhat low and could raise red flags for certain employers. That said, it may not necessarily be the sole factor in the employer’s decision whether to hire you as long as all other factors check out. Ultimately, it depends on the employer and your specific situation.
Getting An Apartment With A 650 Credit Score
Many landlords may check credit scores as part of their tenant screening process. Ideally, your score will be on the higher end, which may be an indication of your ability to make timely payments. In turn, this might mean you’ll be more likely to pay your rent on time.
Again, 650 is not considered poor, and it may be enough to secure a lease. But some landlords might prefer something higher. As is the case with different employers, different landlords might have their own specific credit score requirements when vetting prospective tenants.
Getting Insurance With A 650 Credit Score
Insurance companies may conduct credit checks before providing a quote on premiums and coverage amount. A higher credit score presents less of a risk in the eyes of the insurance provider, particularly when it comes to paying premiums and filing insurance claims. A credit score of 650 could be considered a bit low by many insurers, who may charge higher premiums to offset their perceived risk.
Ways To Improve Your 650 Credit Score
Before considering a high-cost or high-interest loan, consider taking some time to build healthier credit. Here are a few steps to take:
Pay Bills On Time
Your payment history is one of the most significant factors used when calculating your credit scores. Depending on the credit scoring model, your payment history can account for around 35% of your credit score calculation.
As such, paying your bills on time and in full can help you build a positive payment history, which may help improve your credit scores.
Apply For A Secured Credit Card
If you’re looking to build your credit from scratch or are trying to rebuild after a financial hardship, a secured credit card is a good option to consider. Consumers, even those with bad credit, are almost guaranteed approval as you simply need to be able to provide a deposit to secure the card.
Once you start using the card responsibly, your payments will be reported to a credit bureau, which may help build good credit.
Monitor Your Credit
Monitor your credit report on a regular basis to ensure there are no discrepancies. Sometimes, a credit report might show an outdated debt, or even show a debt that doesn’t belong to you. Monitoring your credit report allows you to rectify any errors, which may be hurting your credit.
Reduce Your Debt-To-Credit Ratio
Also referred to as your credit utilization ratio, your debt-to-credit ratio compares the amount of revolving debt you carry to the amount of credit available to you. This ratio is another common factor used in the calculation of your credit scores. It typically accounts for about 30%.
Generally speaking, lenders like to see a debt-to-credit ratio of 30% or under, as higher ratios can indicate that you may be financially overextended. One way you can reduce your ratio is by increasing your credit limit, spending less money on credit, or paying off your credit card(s) or line(s) of credit more frequently.
Final Thoughts
A credit score of 650 isn’t bad, but it’s not good, either. The good news is that 650 is just under the threshold of what would be considered a ‘good’ credit score. That means you may still have some luck getting approved for credit, and with some effort and patience, you can achieve good credit within a few months of making responsible financial decisions.
