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How You Can Buy a Car in Canada with a Bad Credit Score

Dec 27, 2021 | Car Loans

Due to recent world events, a car in Canada, or anywhere else in the world, has become a necessity. Having your own vehicle is essential in ensuring you get to your destination safely and with minimal contact with pathogens. However, not everyone can pay for a car in full.

Auto financing allows most Canadians to own a car. However, to receive an approved car loan, you would need to have a credit score of at least 630.

If you cannot meet the credit score requirement, here is what you can do:

Understand Your Financial Situation

When applying for car financing, you first need to get a better picture of your financial situation. It means knowing your credit score and mapping out your finances.

Various factors affect your credit score. Some of these include your income, existing debts, loan inquiries, payment history, debt history, and more. If you do not know your credit score, you can request a copy of your credit information from Equifax or Transunion.

Aside from knowing your credit score, you also need to understand how much payment you can afford every month. You can use an auto calculator to help you get a rough estimate.

Work on Your Credit Score

Working on your credit score is the next logical step for you. It involves paying your dues on time every month, not applying for additional loans, and not making loan inquiries.

Fixing your credit score will not happen overnight. You would have to maintain good financial behaviour for at least six months to have significant effects. Improving your credit score will benefit you in the long run. Not only will more financial options be open for you, but you will build better habits to help you manage your finances better.

Be prepared for your credit score to take a dip after a successful car loan. Despite the initial hit, a car loan can improve your credit score in the long run.

Look for a Bad Credit Car Loan Specialist

Do you need a car but have no time to fix your score? Then, you may want to look for a company that specializes in bad credit loans.

If you go directly to a dealership for financing with bad credit, you have a higher chance of being rejected. Banks may not be equipped to handle your case either. But there are private companies who can lend you a hand.

Some lenders are ready to give you a pre-approval with bad credit. You only need a co-signer or guarantor and a slightly higher down payment. Both actions protect the lender from the potential financial risks of taking on your loan. However, some companies offer zero down payments.


You need not wait for your credit score to improve before buying a car. There are financing solutions available to help you get a vehicle. However, you have to be realistic in your expectations. You cannot buy a Lamborghini on a small credit card or 0 percent financing.

When shopping for car financing options, look out for a lender that caters to your needs. Find a company that can give you the best deal with bad credit. It means considering the down payment options, interest rates, and terms flexibility. Bad credit may have held you back in the past, but not anymore.

Get Approved Canada is your car loan specialist. We are proud partners with over twenty-three automotive companies all over Canada, offering reliable bad credit car loans with as low as 0 percent down payments. Get pre-qualified in sixty seconds today!

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