Credit Score

A credit score is a numerical representation of a customer’s creditworthiness, used by lenders to determine the risk of lending money. In Canada, common credit scores are the FICO scores provided by Equifax or TransUnion, typically ranging from 300 to 900. When a dealership arranges financing, the lender will check the applicant’s credit score – higher scores generally qualify for better interest rates and terms, while lower scores may require subprime financing solutions. Dealership finance staff educate customers on how their credit score impacts the approval and terms of an auto loan, and they must handle credit information in compliance with privacy laws.