Let’s get one thing straight: having bad credit in Canada does not mean that you can’t get approved for an auto loan.
We understand the struggle of going from dealership to dealership, only to find out that they can’t help. Getting on the road shouldn’t be that difficult, but unfortunately, it’s a common scenario amongst many Canadians in debt.
Luckily, you’ve got options!
While there are a few considerations to be mindful of, there are plenty of ways to boost your chances of getting approved for an auto loan. Let’s take a look at a few possible scenarios.
Find a Co-Signer
Bad credit is not uncommon, in fact, over 6 million Canadians struggle with it on a daily basis. If you don’t have the luxury of waiting for your credit score to improve, this a great short-term strategy to get you approved.
As with most loans, having a co-signer who can vouch for you is a great way to increase your chances of getting approved. Auto loans work the same way, meaning a co-signer can help get you the best rate possible for your unique situation.
Remember, taking this route means that your cosigner is responsible for paying off your auto loan if you miss your payments. Make sure going down this path is a comfortable decision for both you and your co-signer (no matter the consequences). This is because you don’t have the ability to change your mind when the paperwork is complete.
Find a Subprime Dealer
The internet is your best resource for finding trustworthy lenders who specialize in bad credit auto loans. Your credit score may be dinged a little every time you check it, so be sure to settle on a vehicle prior to letting a dealer check your credit history.
It also doesn’t hurt to be upfront with your sales advisor as they work with differing credit situations on a daily basis. Let them help you find a vehicle that you could get pre-approved for.
Alternatively, companies like The Auto Providers specialize in bad credit auto loans. Our program is designed to connect you with a dealership in your area who will provide you with both a vehicle and a manageable loan (all while rebuilding your credit).
Whether you have bad credit, no credit, or going through bankruptcy, we can help you get an approval for the vehicle you need.
Improve Your Credit Score
If you don’t need to get into a vehicle in your immediate future, then improving your current credit score should be priority number one. While this is a long-term strategy, you will start seeing substantial results to your credit score in less than 12 months.
Most lenders consider your credit score as a key factor in determining interest rates. To get the best rates possible it may be time to start thinking about creating monthly budgets, paying off debts and allocating the rest towards savings. If your monthly expenses outweigh your current income, its time to reach out to a credit counsellor.
A counsellor can help consolidate your debt into an affordable monthly loan to get you out of debt and back on your feet. Allocating a portion of your income towards savings will also allow you to put a downpayment on your future vehicle, giving lenders another reason to approve you.
Can You Apply to a Bad Credit Auto Loan Online?
Banks have criteria that they need to follow when working with bad credit individuals. This leads to many Canadians getting disapproved or approved at extremely high-interest rates.
Whether you have bad credit, no credit or don’t have a co-signer to vouch for you, The Auto Providers are sure to get you approved for a vehicle that you can afford.
With thousands of dealerships and happy customers across Canada, we do everything possible to get you on the road in as little as 48 hours! Apply online today using our quick, secure and free application to see what you qualify for before you start shopping.