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6 Tricks for Getting a Car Loan with Bad Credit

Too many Canadians are being forced to use unacceptable vehicles as many banks have turned to extremely stringent approval qualifications

In a country with winters as harsh as Canada’s it is increasingly important that Canadians are able to get a quality vehicle without being strapped with high payments and unmanageable debt loads. Here are six tricks to help you get the car that you want, despite what your credit history says.

Rent to Own Programs (aka Lease-to-Own)

Lease to own programs give you the option to purchase the vehicle once the lease term expires. Since lease to own programs often don't require a credit check, it's a great option for people who want to own a car but are struggling with Credit.

You must be sure that these places will report the positive repayment history to the credit bureaus (Transunion / Equifax) or there’s a chance your credit score may not improve even after full repayment.

Buy a vehicle Cash

Although this is not an option for a lot of Canadians the one way to beat the bank is to avoid them all together, by buying your vehicle in cash The downside would be is if your cash savings doesn’t allow for a very good vehicle purchase Online Car Loan Service – There are services like Canada Drives that allow customers to apply for a vehicle and financing (even with bad credit) online.

Large down payment

Putting down a large down payment upfront can dramatically lower the cost of your monthly payment, this requires having a large sum of money already saved up and can end up being a deciding factor to what vehicle you make available for yourself. Again, this is only possible if you have a sizable savings account.

Credit Improvement programs

There are programs available that allow Canadians to slowly improve their credit score by making payments on time (sometimes with secured credit cards). This is only a good option if you have time to wait to get a vehicle and don’t need one right away as it may take a while for your credit to improve to a point where you can get an auto loan through your local bank.

Dealership with Non-Prime Departments

Some dealerships have special departments that can assist customers with low credit scores (or new to credit) get a vehicle. These dealerships can be hard to find as many will advertise this service, but few will be effective at helping hard-to-finance customers.

While all of these points are sure-fire ways to help you build credit and get approved for a loan, they may not be all suitable options depending on your financial situation. It’s best to find the one that will be the easiest and one that will work around your situation to make the car buying process a much easier procedure. 

Where to start?

Getting a loan with bad credit doesn't have to be stressful. Canada Drives has partnered with over 350 car dealers across Canada who offer financing programs geared towards people with any credit. We can quickly match you with a dealership that can pre-approve your loan. 

Get started by completing our quick online application and get approved in as little as a few hours.


Apply for Your Car Loan

Your online application takes only 2 minutes to complete and we only ask for information we actually need.

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Or feel free to call us at 1-888-865-6402