Buying a car and getting a vehicle loan in Canada may seem like a daunting experience, especially if you don’t have any credit history or have a less-than-desirable credit score. The key is to not beat yourself up; there are ways for you to get approved despite your credit history. In fact, we are the experts in helping people like you get approved, and you can start right here by qualifying online. We work with people with amazing credit and poor credit and can find an auto loan solution for anyone. Having a bad credit score or no credit doesn’t make you a bad person, and it’s not like you’re stuck with your current credit score for the rest of your life; there are ways to improve your credit rating. We’ll never tell you lies, so we gotta be honest; unfortunately, having a low credit score does make it a bit more challenging to get a loan compared to if you have a good credit score. In most cases, a bad credit car loan does come with higher interest rates.
How Canadians Get Car Loans
We like to play nice and understand there are factors beyond credit scores that lenders look at. We never take one lender’s approval or lack of as the final decision. We get creative to find various car financing options that are best for you and your individual situation. As much as we would like to give everyone the best interest rates, that is often not the case. Banks and credit unions are probably the hardest places for borrowers to get financing with poor credit. With that said, still talk to your bank, as they may take into consideration your personal relationship with them.
Car dealerships (us, FFUN Cars) are probably the best option when it comes to bad credit auto loans since we are highly motivated to get you a vehicle, and therefore want to get everyone approved.
You could, as a last resort, go to a private lender. If this is your only option, know that it is a much riskier one and you should do your research beforehand to ensure they are credible.
The Process
Whether you have good, bad, or no credit, the initial process is the same for getting a car loan. A credit check must always be done to ensure there aren’t any absolutely crazy things on your credit report and consider your financial situation as part of the loan application. Loan providers will also want to see your driver’s license and proof of income, in which case, a pay stub will suffice.
Here’s an option that is far less invasive than what a traditional car dealership will put you through. Take advantage of some of our fancy technology by playing around with our car loan calculator, and by (as we said above) qualifying online. Within minutes you will have loan terms, including the amount you qualify for, interest rates, and length of loan emailed right to you.
Better Your Chances
If you can hold off on getting a vehicle and your credit score is a work in progress, consider waiting and using that time to increase your chances of getting better loan terms. As part of rebuilding your credit, you’ll want to pay down your credit card and make sure you don’t miss a payment or make any late payments on bills.
It’s your credit score so you want to ensure you check your credit report every so often to see where you stand and what has been reported to the credit bureau. Often sites like TransUnion or Equifax will offer discounts on a full credit history report.
Set a budget for your life, including a car loan. Part of having good financial health is having a budget and sticking to it. This includes looking at your income and putting it up against expenses that include rent or mortgage, groceries, gas, entertainment, and any other living expenses.
Pro-tip. Calculate a new car versus a used vehicle. Buying brand new means the vehicle is in perfect working condition, whereas a used car may have some quirks about it. If you are going with a used car, buy from us, where every vehicle comes with a free CARFAX report so you know everything about the vehicle’s history.
Read the fine print. It doesn’t matter what your personal finances are, whether you have great credit or not-so-great, always read the disclaimer and any fine print. The last thing you want is to get yourself in financial trouble because you didn’t do your due diligence.
If you have someone willing to be a co-signer, you may want to ask them. Having someone with a strong credit rating attached to your loan will make it easier to get approved and will have better terms.
We’re going to be upfront with you. We’re pretty sure you’ve been put through the wringer with traditional lenders and dealerships. We aren’t about that. We’ve made the car buying experience easy and convenient; it’s all about you, no matter what your bank statements say or your credit report. We’ve got benefits beyond having an amazing inventory of vehicles. We also have a 30-day money-back guarantee and 24-hour test drives. The number one thing is your convenience. You can buy your car online, in-store, or a combination of the two; it’s all based on your preference. Come on over and give FFUN Cars a try.
