A new car is one of the biggest investments you’ll make, as you’re putting your trust in this vehicle to transport you safely to your destination for years to come. But to get a new car that meets your standards for safety and standards, many people take out car loans and pay them off a bit at a time over years, which can be difficult if you have less than ideal credit. We’re Ride Approval, an Edmonton-based vehicle financing company ready to work to get you the best Canada car loans on bad credit.
There’s a way to get financing for the vehicle you want without having perfect credit or paying exorbitant rates, and we can help you find it with our team of trusted experts. We work with some of Canada’s best lenders, making it easier to get the best rate and terms possible without having to make your case to each lender and hope one bites. Read on to discover how to find the best Canada car loans on bad credit.
5 Tips to Find the Best Canada Car Loans on Bad Credit
Know What You’re Dealing With
Before you meet with your first lender, and even before you contact us for help, the first step to getting a car loan is to know your credit score and what it means. This will help you so you can’t be surprised by any unpleasant realities in the middle of a meeting, and there are many useful and free online tools to help you learn your credit score without professional help.
Once you understand your credit score and the reasons behind it, it’s easier to start making changes that will improve your odds of getting a good car loan. One of the easiest ways to boost your credit score is to check for outstanding delinquent payments that you can pay, as every item removed from your credit history will boost your status.
Potential lenders won’t just look at your credit score: they’ll look at its trajectory. A client with a decent credit score trending downward may be seen as a more risky bet than a client with a bad credit score with recent positive moves.
Research and Shop Around
Getting the best Canada car loans on bad credit is a shopping trip, and before you open your first negotiations, you need to know the difference between a good offer and a bad offer. Investigate your potential lenders’ key factors, like their Annual Percentage Rate, or the yearly interest rate you’ll be paying.
If you’re trading in a used vehicle as part of your negotiations, it also helps to know the Canadian Black Book value of your car to ensure you’re getting a fair price from a potential lender.
We have relationships with many of Canada’s top lenders, so you’re not limited to a single agency that can set the terms. You’re free to negotiate with different agencies competing for your business, which puts the ball back in your court and lets you pick the agency that’s right for you. It’s best to approach several agencies around the same time before the hard credit check from the first inquiry indicates that you’re about to take on more debt.
Walk In Pre-Qualified
If you’re worried about getting a car loan with bad or flawed credit, you will increase your odds by making a bank or credit union your first step rather than an auto lender. The standards for a loan from one of these options are lower than most auto lenders, and while their offerings may not be what you need for this loan, they can still help you.
If you have a pre-existing relationship with your bank or credit union, and they approve you for a loan, you can present that as proof of credit to an auto lender. If you’re not a member of a credit union, these organizations offer a unique opportunity for a fresh start for someone with flawed credit, and joining can be a good financial move.
They’re non-profit organizations owned by their members, and they often work with members with bad credit. While opening an account with them usually comes with fees, it is not a big investment and can pay for itself many times over.
Know the Terms and the Fine Print
Having a lending agency like Ride Approval in your corner is an advantage for anyone looking for the best Canada car loans on bad credit because lenders often sneak in terms under the borrower’s nose.
One of the first things to check is if the terms are final and can’t be revised later in the agreement. This is what’s called a yo-yo deal, when dealers up the interest rate later in the process or demand more money upfront, and it can be avoided by carefully checking your terms or vetting it through a reliable source.
Another thing to beware of is subprime lenders, as there can be many lower-tier lenders boasting of easy money for borrowers with bad credit. These outfits often come with higher interest rates that can be hard to meet, and they may want your vehicle as collateral and put you at risk of repossession. This makes these outlets a last-ditch resort and one that can easily be avoided with the help of a trusted agency to vet the best lenders for you.
Let a Vehicle Financing Expert Take Charge
One of the best ways to turn the odds in your favor when looking for a Canada car loan with bad credit is to partner with someone who has made thousands of matches over the years. This takes the stress out of applying for a car loan, as you’ll apply through us for free and let us work with lenders to find the best option for coverage.
We don’t charge you for our services. Instead, we work with the lenders and auto agencies to arrange the best matches for them. Our approvals are among the fastest in the business, with no money down and a 98% approval rate for anyone earning over $1,800 a month with a steady employment record.
Our application is fast and doesn’t require a SIN number, so you can trust your data is safe with us. Many lenders won’t even talk to a potential borrower with a credit rating under a certain level, but we work with all borrowers and pride ourselves on finding the best match for your financial status and vehicle needs.
Ride Approval: Your Ticket to a Canada Car Loan With Bad Credit
If you’ve been turned down by auto loan agencies due to your credit, there is no need to give up or take a subprime loan that could make your credit issues worse. We specialize in finding the best car loans for any borrower, no matter their credit level, and we can have a strong match for you in only hours.
It takes only minutes to set up a loan application with us, and you’ll get access to the best lenders in Canada. Contact Ride Approval today for more information on our services or to set up a credit check today. You’re closer to your dream vehicle than you think.