What You Can and Can't Do With a 650 Credit Score in Canada

By Julien Brault, founder of MooseMoney.

A 650 credit score in Canada falls in the "fair" range (600 to 659), which puts you just below the "good" threshold of 660. You can still qualify for car loans, high interest personal loans, and secured credit cards, but you will face higher interest rates and fewer product choices than someone with a score of 660 or above. The average Canadian credit score sits around 672, so at 650, you are slightly below the national average and roughly 10 points away from significantly better options.

Richard Goyder, Chief Credit Risk Officer at Neo Financial, put it plainly: "A 650 credit score is not great, but it's not terrible. If you are using Neo as your primary chequing account, we might be able to give you an unsecured card with this score. The only way to know is to apply and we'll look at your score and determine which kind of card we think is most appropriate for you."

For mortgages, most major banks want a minimum score of 680, though some subprime lenders will work with borrowers as low as 640. At 650 you may qualify, but expect to pay a higher interest rate, provide a larger down payment, or bring on a co-signer. Credit unions and alternative mortgage lenders tend to be more flexible, though their rates are often higher to compensate for the added risk they take on. Your income, debt-to-income ratio, and payment history will also weigh heavily in any mortgage decision, so a strong financial profile elsewhere can offset a fair credit score.

Car loans are more accessible at 650 because the vehicle itself serves as collateral, which reduces the lender's risk. You will likely still qualify, but you should expect higher interest rates and may need a bigger down payment than someone with good or excellent credit. Personal loans are also possible through banks and alternative lenders, though loan amounts may be smaller and terms less favourable. For lines of credit, you can probably get approved, but the limit will be lower and you will not have access to the best rewards or cashback programs.

Credit cards are where a 650 score becomes a real limiting factor. Most unsecured cards from major issuers require a minimum score of 660 or higher, and premium rewards cards typically want 700 or above. If you cannot qualify for an unsecured card, a secured credit card like the Secured Neo Mastercard lets you put down a refundable deposit and use the card to build your credit history, since payments are reported to the credit bureaus. Secured cards are one of the most reliable tools for moving from fair credit into good credit territory.

Beyond borrowing, a 650 score can affect other parts of your life. Some landlords run credit checks during tenant screening, and while 650 is not poor, it may put you at a disadvantage in competitive rental markets. Certain employers, especially for finance-related roles, also check credit reports. Insurance companies in some provinces use credit information when setting premiums, so a fair score could mean you pay more for coverage.

How to Move Past 650

The fastest way to improve a fair score is to focus on the two factors that make up 65% of your credit score calculation. Payment history accounts for roughly 35%, so paying every bill on time and in full is the single most impactful thing you can do. Credit utilization accounts for about 30%, and you should aim to keep your balances below 30% of your total available credit across all accounts. A good way to increase your available credit is to get a secured card such as the Secured Neo Mastercard, which allows you to pick your credit limit, which will be the same as your security deposit. 

Beyond credit utilization, let your oldest accounts stay open to protect the average age of your credit history, avoid applying for multiple new products in a short window, and check your credit report regularly for errors. Disputing inaccurate information with Equifax or TransUnion can sometimes produce a quick score bump if a reported debt does not belong to you or a payment was not properly recorded.

Richard Goyder from Neo Financial also noted the importance of pushing past 650: "With a credit score of 680 and above, you're doing okay. You might want to improve it so you can get better products and bigger lines of credit, but it's not terrible. Once your credit score is above 720, you're no longer somebody who has bad credit in any way."

There is no fixed timeline, but most Canadians who consistently pay on time and keep utilization low can move from 650 into the good range (660 to 724) within a few months to a year. The key is consistency. Every on-time payment and every month of low utilization adds positive data to your credit report, and that data compounds over time.