Taking out loans is something most of us will need to do at some point in our lives, whether it’s a car loan, mortgage, credit card, or personal loan. Securing a loan is typically not a problem if you have a high credit score, but with bad credit, you may find yourself struggling to get approved for a loan.
But how low is too low when it comes to credit scores and getting a loan? More specifically, can you get a loan with a 450 credit score?
Key Points
- A credit score of 450 in Canada is considered ‘poor’.
- With a 450 credit score, you may have more difficulty securing a loan, though it’s still possible.
- You will need to work with an alternative lender if you have bad credit.
What Does A 450 Credit Score Mean?
In Canada, a bad or poor credit score usually ranges anywhere from 300 to 559. So, a credit score of 450 would fall under the ‘poor’ or ‘bad’ credit range.
The following chart outlines different credit score ranges and their associated credit rating:
| Credit Score Range | Credit Rating |
| 760+ | Excellent |
| 725–759 | Very Good |
| 660–724 | Good |
| 560–659 | Fair |
| 300–559 | Poor |
Learn more: Credit Score Range in Canada
| Do You Know What Your Credit Score Is? If you don’t know what your credit score is, you can check it for free with Loans Canada CompareHub. |
Do You Have A 450 Credit Score? Here’s How It Could Affect You
A 450 credit score can impact you in various areas of your life, including borrowing, getting an apartment, a job and even insurance.
Employment
Depending on the type of job you’re applying for, a 450 credit score could stand in the way of getting hired. Some employers, particularly those looking to fill job positions that deal with finances, law enforcement or sensitive information, may pull your credit report as part of the application process.
Insurance
Your credit score could be indicative of how likely you are to pay your premiums and file a claim. A higher score is perceived as lower risk for insurance providers, so they may offer lower premium prices and more comprehensive coverage as a result. A bad credit score, on the other hand, can have the opposite effect.
Apartment Leases
Many landlords conduct a credit check on lease applicants as part of the application and screening process. A credit score of 450 could mean that you may be more likely to pay your rent late. In this case, you may have more difficulty getting approved for an apartment lease.
Borrowing
Whether you apply for a personal loan or mortgage, lenders will check your credit score as part of the application process. Here’s what you can expect when applying for a loan with a 450 credit score.
Can You Get A Loan With A 450 Credit Score?
A 450 credit score is considered poor, which can make it very difficult for you to secure a loan from a traditional bank or financial institution. Lenders consider a low credit score as a high risk and may be unwilling to extend a loan as a result.
However, there are still some potential options available, including bad credit loans from alternative lenders. That said, these types of loans often come with much higher interest rates.
Can You Get A Mortgage With A 450 Credit Score?
Getting a mortgage with a 450 credit score in Canada is very challenging, as most lenders require a score of at least higher credit scores for mortgage approval. Major banks and credit unions typically require a credit score of at least 660 and 680, though the minimum depends on the specific lender. As such, a credit score of 450 is well under this threshold.
With a credit score of 450, you’ll likely need to work with private or subprime lenders, who are more flexible than traditional banks and may consider a lower score for mortgage approval. In this case, the lender cares more about the property than your credit score. However, you can expect higher interest rates, larger down payment requirements, and stricter terms.
Can You Get A Car Loan With A 450 Credit Score?
Yes, it’s possible to get a car loan with a credit score of 450, though it may be more difficult. Further, there are many important considerations to make, including where to find a car loan lender who works with bad credit borrowers, interest rates, and down payment requirements. Again, you may need to work with an alternative lender to get a bad credit car loan, and expect the loan to be more expensive and less flexible.
Can You Get A Credit Card With A 450 Credit Score?
Getting a credit card with a credit score of 450 can prove difficult. Most lenders require average to excellent credit. However, there are other options available, including secured credit cards.
You can use a secured credit card just like a regular card for purchases. Moreover, some secured credit cards offer a points system and other benefits like a regular credit card. However, you’re not spending on credit with a secured card. Instead, you’ll be required to make a deposit, which serves as the credit limit on the card.
Secured cards are easy to qualify for, and if you make timely payments every month, you can steadily build a good payment history, which can help you build your credit.
| Annual Fee | Purchase Interest Rates | Min. Deposit | |
 Secured Neo Mastercard | $5/monthly | – 19.99% – 29.99% – QC: 19.99% – 24.99% | $50 |
 Secured Tims® Mastercard | $0 | – 20.99% – 26.99% – QC: 20.99% – 24.99% | $50 |
 Home Trust Secured Visa Card | 0$ or $59 | – 19.99% (no annual fee) – 14.90% (with annual fee) | $500 |
 Vancity enviro™ Secured Visa* card | $0 – $395 | 11.25% or 19.50 % | $500 |
How To Improve A 450 Credit Score?
There are multiple ways to improve your credit score:
Make Your Payments On Time
Those with credit scores of 450 may lack a positive payment history. Paying your bills on time every month is a good first step in improving your credit scores.
Reduce Your Debt-To-Credit Ratio
Your debt-to-credit ratio is another common factor used to calculate your credit scores. If you’re carrying a lot of revolving debt from month to month, it may be negatively affecting your credit. Paying your bills and reducing your spending will help reduce your credit utilization ratio, which may positively affect your credit.
Use A Credit Builder Loan
Some companies offer credit builder loans designed to help low-credit borrowers rebuild their credit. For example, KOHO’s Credit Builder Program involves taking out a line of credit where KOHO sets aside a certain amount from the credit line every month and reports these payments to Equifax. This can help you steadily build good credit.
Check Your Credit Report For Mistakes
Get a copy of your credit report and scan it for inaccuracies. These mistakes, if found, could be pulling your credit score down. If you spot any, report them to the credit bureaus and have them fixed right away.
| How Long Does It Take To Improve A 450 Credit Score? Improving a 450 credit score takes time and consistent effort, but it’s certainly possible. The exact amount of time it takes to improve it depends on your efforts, consistency, and where you want your score to inevitably be. Very low scores are typically caused by serious past credit issues, like R9 ratings and bankruptcies. Bouncing back from these issues take time. For example, you may see your score inch up by anywhere from 30 to 50 points in a few months by paying bills on time, paying down credit card balances, and avoiding new hard credit checks. However, as mentioned, this will vary depending on the actions you take, your current credit score, and who you check your credit score with. |
Learn more: How To Improve Your Credit Scores
What Are The Benefits Of Improving Your Credit Score?
A higher credit score will afford you plenty of perks. That said, these benefits may vary depending on how high you get your credit score.
What Happens When You Reach A 650 Credit Score?
A credit score of 650 is just under what’s considered ‘good’ credit. When you reach this credit score, you open more doors for credit products, like mortgages, credit cards, and personal loans.
That said, with a 650 credit score, you may still have some difficulty getting approved with the most competitive terms and rates with traditional banks. That said, you should have little trouble securing a loan with an alternative lender.
What Happens When You Reach An 800 Credit Score?
Hitting a credit score of 800 will give you access to all credit products, as this score is classified as ‘excellent’. At this level, not only will loan approval be highly likely, but so will lower rates and the best terms.
That means your loans will be more affordable and convenient. You’ll have access to higher loan amounts and credit limits, and more flexibility with term lengths.
Bottom Line
Even with a less-than-perfect credit score like 450, you can still get a loan, but it will be very challenging. While banks may turn you down, there are private and subprime lenders who may be willing to work with bad credit borrowers. Just be wary that you’ll pay much higher interest and may not qualify for high loan amounts.
