Learn more about the laws and regulations in Canada affecting finance, cars, mortgages, and more.
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Each lender has its requirements. However, meeting a minimum credit score is the most common. Generally, this limit is 550 for most lenders. But if you have a lower credit score, there are still lenders and loan providers available for you to use. We encourage you to use our services to search for a financing solution, regardless of your credit score.
Lenders may also require you to be a Canadian resident, be the legal age of majority for your province, and prove that you have a regular source of income.
How much you can borrow depends on various factors, including your income, credit score, down payment amount, and what you can afford to pay per month. If you meet the lender’s minimum requirements and provide all the required documentation, you should be eligible to borrow the amount you need. Generally, car loans range anywhere from $500 to $75,000 on average.
You can complete a pre-approval application for a car loan online, which involves the same steps and inspections as a car loan application. The lender will verify your credit score by doing a hard credit check, which could affect your credit score slightly.
It is advisable to obtain pre-approval from all the lenders you wish to approach within two weeks. They would then treat multiple credit checks as only one credit inquiry.
You will typically be required to provide your name, income, and debt information to the lender as well.
Once this process is complete, you will receive the estimated loan terms. Obtaining pre-approval should give you an idea of the value of the car loan you qualify for and what your payments will be.
If your ideal vehicle costs more than what you can afford, a car loan can make owning that car a reality. Although buying a car for cash is an option, it is not a realistic route for many. Instead of waiting and saving for years to buy a car, you could purchase a vehicle immediately.
A financial institution or lender, such as those listed on Comparewise will lend you the money you need to buy your car. You will then commit to is paying interest and making frequent payments back to these providers.
If you have a low credit score, lenders do not immediately disqualify you from applying for a car loan.
Although receiving a loan from a bank is out of the question, there are several options of car loan facilitators available for you. Your best option would be what is known as a bad credit lender. Make sure to consider all our listed lenders to make the right choice for your budget.
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