How to Get Approved for a Car Loan with Bad Credit

How to Get Approved for a Car Loan with Bad Credit

Written by January 26, 2022

Bad credit is a pain to have, but it shouldn’t stop you from living your life. And, with driving being such an essential part of life in Canada, this financial status shouldn’t stop you from joining a lifestyle that people across the country take part in everyday.

Unfortunately, the reality is that bad credit does stop people from financing their own cars. Traditional money lenders are predisposed to favour applicants with high credit scores while turning away those with poor credit scores. As it turns out, this situation happens more often than you think.

Poor credit scores ranking below 650 affect about 20 percent of Canadian adults. With banks unwilling to help, you’d think there’s no way to help these people. But you’d be wrong, because there is another way.

A new alternative to traditional money lenders is subprime loans. This is a special type of loan specifically geared for borrowers who have bad credit, typically for users with credit scores below 650. In cases where traditional lenders like banks are unwilling to help, Canadians now have a viable way to get their own car.

These days, getting approved for a car loan has become easier than ever with the introduction of online dealers like

Do you have bad credit? Find out how to get approved for a car loan in Canada with this article.

Minimum Requirements to Get a Car Loan

Results may vary from province to province, but here’s a basic list of the minimum requirements you’ll need to get a car loan in Canada:

  • Income: About $2,000 per month for at least 1 month.
  • Driver’s license: You must have a valid driver’s license for your jurisdiction.
  • Age: Depending on your province. The minimum age for getting a auto loan is either 18 or 19.
  • Credit score: The basic rule is: the higher, the better. But, unlike the way it was done before, having a high credit score is no longer mandatory for getting a car loan.

Credit Score Requirements: Traditional vs. Subprime

Traditionally, lenders like banks and credit unions would use credit scores as a main criteria in judging loan applicants. A high credit score was regarded as a sign that gives lenders confidence that borrowers will pay back loans promptly and in full. Although this exact number may vary, the benchmark between good and bad credit was generally in the mid-600s, usually between 630 and 650.

However, with the rise of subprime lenders, loan applicants become much more than just numbers on a credit report. So even though a high credit score remains preferable and advantageous, holders of bad credit are not out of options these days. Online car dealers like are willing to help people with all kinds of credit, and they do so with different requirements, as in the case with personal information.

Information Requirements: Now and Then

Along with credit scores, traditional lenders will require car loan applicants to take part in lengthy and strenuous information gathering sessions. Applicants are expected to provide detailed personal information such as:

  • Social Insurance Number
  • Credit history and credit report
  • Monthly bills
  • Vehicle bill of sale

On the other hand, has a streamlined application process that can be completed in just three minutes. Questions are simple and straightforward, allowing for eligible applicants to be approved instantly in real time.

As proof of how easy it is, here is the complete application process. To get approved, all you need to do is provide the answer to these requested details:

  • Personal Information: Name, date of birth, email address, mobile number, marital status
  • Residence: Home address, rent/own status, monthly amount for rent/mortgage, duration of rent/mortgage
  • Employment: Employer name, employment status, monthly gross income, and work duration

And that’s it! The process is so quick, it could conceivably be finished in less time than reading this article.

Interested in applying for a car loan with Get on-the-spot financing here!

Income Requirements: “What if I don’t have enough?”

The flexibility provided by subprime lenders to people with bad credit can also be applied to applicants that fall short of the minimum requirements for income. For these people, getting an auto loan is still well within reach by asking a cosigner to join the application.

A cosigner is a close and trusted person to the applicant that agrees to take on the responsibility of paying back the car loan if ever the circumstances should happen that the applicant is unable to repay the loan by themselves. For this reason, cosigners are often family or friends that have established their own lines of credit, and have good credit scores of their own.

Taking the Next Steps

If you’re tired of being rejected for a car loan, you don’t have to feel that way anymore. has helped thousands of people with all types of credit get into their next vehicle. We offer transparent pricing on our extensive, online vehicle inventory with customer payment plans that will fit your budget. Get your car delivered straight to your home, and enjoy it as part of our 7-day Return or Exchange guarantee.

Get your next car financed with by applying today!

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