What a 650-699 score means
A credit score in the 650-699 range in Canada is generally considered "good" by both Equifax and TransUnion Canada. This opens up considerably more borrowing opportunities than lower scores, though it may not always unlock the absolute lowest rates reserved for excellent credit.
Your loan options
Traditional Banks and Credit Unions
Many will consider applicants in this range, offering a fairly competitive range of options and rates.
Online Lenders
A growing number offer good rates specifically to borrowers with good credit, some with fast funding.
Secured Personal Loans
Using an asset like a car or savings as collateral can unlock lower rates or higher approval odds.
What rates to expect
Expect fairly competitive rates in this range, generally 4% to 15% or more depending on the lender, amount, and term. Terms typically run 1 to 5 years (12 to 60 months) — shorter terms mean higher payments but less total interest paid.
Tips to get approved
- Demonstrate Stable Income: Shows you can comfortably afford the payments.
- Lower Your Debt-to-Income Ratio: More disposable income relative to debt makes you a stronger applicant.
- Have a Low Credit Utilization Ratio: Staying under 30% reduces the lender's perceived risk.
- Provide Collateral (if applicable): Reduces risk further for secured personal loans.
- Consider a Co-Signer: A co-signer with excellent credit can improve your odds and rate.
Improving your credit
- Pay Your Bills on Time, Every Time: The biggest factor in your score.
- Keep Your Credit Utilization Low: No more than 30% of your available credit — lower is better.
- Maintain a Mix of Credit: A healthy variety of credit types can help your profile.
- Avoid Opening Too Many New Accounts: Each application triggers a hard inquiry.
- Don't Close Old Accounts: Positive history on older accounts helps your score.
Alternatives to consider
- Peer-to-Peer Lending: Platforms connecting borrowers with individual investors, sometimes with more flexible criteria.
- Secured Loans: Loans backed by an asset are often easier to obtain and carry less stringent requirements.
- Small Personal Loans/Microloans: Some lenders offer smaller products aimed at this credit tier.
- Budgeting and Saving: Sometimes the best move is building savings before taking on new debt.
- Credit Counselling: Non-profit agencies can help with a debt repayment plan and creditor negotiations.
By understanding your credit score and exploring all available options, you can make informed decisions about personal loans in Canada and continue your path to financial well-being.