Bad Credit Car Loans Alberta

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		Provider	Loan Amount	Rate	Term (Months)	Rating
0	0		Up to $50,000	Prime – 35%	3 – 120	Up to $50,000
100	1709683200		Up to $1,250	Up to 32%	90 – 150 days	Up to $1,250
23	1700524800		Up to $25,000	24.99% – 29.99%	30 or 60	Up to $25,000
15	1695254400		$500 – $5,000	Up to 32%	3 – 4	$500 – $5,000
3	1692748800		Up to $350	0%	Up to 65 days	Up to $350
8	1688083200		$150 – $1,600	10 – 35%	3 – 6	$150 – $1,600
100	1686182400		$300 – $3,000	18% + fees	6	$300 – $3,000
100	1686182400		$300 – $3,000	18% + fees	6	$300 – $3,000
100	1686182400		$300 – $3,000	18% + fees	6	$300 – $3,000
6	1683676800		$15,000	6.7%	Up to 60	$15,000
1	1670889600		$1,000 – $15,000	19.9% – 34.9%	–	$1,000 – $15,000
7	1666051200		$250	0%	–	$250
100	1643932800		$500 – $15,000	Starting at 18.9%	6 – 60	$500 – $15,000
100	1623369600		Varies	0%	6 or 8 weeks	Varies
2	1620777600		Up to $35,000	9.99% – 35%	6 – 60	Up to $35,000
17	1607558400		$500 – $50,000	Varies	6 – 60	$500 – $50,000
100	1598918400		Up to $15,000	–	–	Up to $15,000
100	1598832000		$500 – $15,000	Start at 10.99%	9 – 60	$500 – $15,000
100	1582243200		–	–	Up to 60	–
100	1580860800		$1,500 – $10,000	–	12 – 60	$1,500 – $10,000
16	1580774400		$1,000 – $25,000	8.99% – 34.99%	36 or 60	$1,000 – $25,000
100	1579478400		$100 – $1,500	–	–	$100 – $1,500
100	1579478400		$850 – $1,600	29.78% – 34.95%	36 months	$850 – $1,600
18	1576713600		$500 – $100,000	Starting at 12.99%	Up to 60	$500 – $100,000
100	1562198400		$500 – $15,000	15.99 – 35%	6 – 60	$500 – $15,000
19	1552262400		$1,000 – $15,000	29.9% or 34.28%	6 – 60	$1,000 – $15,000
100	1551830400		$1,000 – $15,000	19% – 34.95%	12 – 60	$1,000 – $15,000
100	1551398400		Up to $1,500	$14 per $100 borrowed	14 days	Up to $1,500
100	1551398400		$100 – $1,500	$14 per $100 borrowed	14 – 31 days	$100 – $1,500
100	1551398400		Up to $1,500	$14 per $100 borrowed	14 days	Up to $1,500
18	1546128000		Up to $5,000	19.9% – 35%	6 – 36	Up to $5,000
15	1551139200		Up to $15,000	34.99%	Open-end	Up to $15,000
100	1550534400		$100 – $1,500	$14 per $100 borrowed	14 days	$100 – $1,500
100	1569974400		Up to $1,500	$14 per $100 borrowed	Up to 62 days	Up to $1,500
100	1550534400		Up to $1,500	$14 per $100 borrowed	14 days	Up to $1,500
100	1550534400		$500 – $1,000	23%	3 – 6	$500 – $1,000
100	1550534400		$300 – $1,000	Up to 38%	3 – 4	$300 – $1,000
100	1567555200		$300 – $3,000	18% + fees	6	$300 – $3,000
100	1549238400		$250 – $1,500	23.99% – 29.99%	3 – 4	$250 – $1,500
20	1548720000		$500 – $1,000,000	7.9%	12	$500 – $1,000,000
100	1548720000		Up to $5,000	–	12 - 60	Up to $5,000
100	1548720000		$500 – $50,000	Starting at 8.99%	3 – 120	$500 – $50,000
5	1545264000		$500 – $10,000	12.99% – 34.99%	9 – 60	$500 – $10,000
100	1545264000		$500 – $10,000	Starting at 9.90%	12 – 36	$500 – $10,000
2	1543622400		Up to $60,000	19.99% – 34.99%	6 – 120	Up to $60,000
100	1545350400		$300 – $1500	Starting at 18%	3 – 7	$300 – $1500
100	1545350400		Up to $7,000	35%	6 – 60	Up to $7,000
5	1545350400		$500 – $1000	Up to 32%	3	$500 – $1000
100	1545350400		$500 – $750	23%	3 – 4	$500 – $750
100	1545350400		$500 – $750	22%	90 – 120 days	$500 – $750
100	1545350400		$300 – $3,000	27% – 35%	90 – 120 days	$300 – $3,000
4	1545264000		$500 – $100,000	29.99% – 35%	9 – 84	$500 – $100,000
3	1545264000		Up to $5,000	9.9% – 35%	–	Up to $5,000
10	1545177600		Up to $35,000	Starting at 12.99%	Up to 60	Up to $35,000
18	1545177600		$100 – $20,000	Up to 35%	Up to 60	$100 – $20,000
100	1569974400		$200 – $1,500	$14 per $100 borrowed	Next payday	$200 – $1,500

		Provider	Loan Amount	Rate	Term (Months)	Rating
0	0		Up to $50,000	Prime – 35%	3 – 120	Up to $50,000
3	1725321600		Up to $40,000	$0.75 per $1,000 per day	–	Up to $40,000
8	1714089600		$10,000 – $20,000,000	–	–	$10,000 – $20,000,000
7	1714089600		$10,000 – $2,000,000	10%+	Up to 36	$10,000 – $2,000,000
2	1669852800		$10,000 – $300,000	–	3 – 24	$10,000 – $300,000
100	1648512000		$1000 - $250,000	–	–	$1000 - $250,000
100	1620345600		–	–	12 – 60	–
100	1611878400		–	–	–	–
17	1607558400		$500 – $50,000	Varies	6 – 60	$500 – $50,000
100	1598918400		–	–	–	–
100	1592438400		–	–	–	–
100	1585612800		–	–	6 – 60	–
100	1581984000		$10,000 – $10,000,000	6% – 12.5%	–	$10,000 – $10,000,000
100	1580947200		$200,000 – $5,000,000	–	–	$200,000 – $5,000,000
100	1580860800		–	–	–	–
100	1580860800		–	–	–	–
100	1580860800		$5,000 – $1,000,000	–	–	$5,000 – $1,000,000
100	1580860800		–	–	–	–
100	1580860800		–	–	–	–
100	1580860800		–	–	–	–
100	1580860800		–	–	–	–
100	1580688000		Up to $10,000	Prime + 2.5%	Up to 60	Up to $10,000
100	1580256000		$5,000 – $800,000	–	6 – 24	$5,000 – $800,000
100	1579478400		$10,000 – $30,000,000	–	–	$10,000 – $30,000,000
100	1579478400		$50,000 – $5,000,000	–	3 – 36	$50,000 – $5,000,000
100	1579478400		–	–	24 – 60	–
100	1579478400		–	–	–	–
100	1579478400		Up to $1,200,000	–	12 – 84	Up to $1,200,000
100	1579046400		–	–	–	–
100	1577059200		–	–	–	–
100	1577059200		–	–	–	–
100	1577059200		–	–	–	–
100	1575849600		$5,000 – $150,000	Starting 15%	6 – 24	$5,000 – $150,000
100	1575849600		Up to $250,000	–	–	Up to $250,000
100	1575590400		–	–	–	–
100	1575590400		–	–	–	–
1	1545955200		$1,000 – $300,000	5.49% – 22.79%	12 – 60	$1,000 – $300,000
100	1552262400		$500,000 - $10,000,000	–	–	$500,000 - $10,000,000
100	1548720000		Up to $5,000	–	36 – 60	Up to $5,000
100	1552262400		Up to $250,000	–	Up to 10 years	Up to $250,000
100	1552262400		Up to $1,000,000	–	–	Up to $1,000,000
100	1551830400		$10,000+	–	Up to 15 years	$10,000+
100	1551830400		Up to $1,000,000	–	Up to 15 years	Up to $1,000,000
100	1551830400		Up to $500,000	–	Up to 15 years	Up to $500,000
100	1551830400		Starting at $5,000	–	Up to 84	Starting at $5,000
100	1551398400		$3,500+	–	–	$3,500+
100	1551398400		$10,000 – $1,000,000	4% – 14%	12 – 84	$10,000 – $1,000,000
100	1551139200		Up to $250,000	–	Up to 48	Up to $250,000
100	1550534400		$500 – $50,000	2.75% – 8.25%	12 week cycles	$500 – $50,000
100	1550534400		$1,000 – $1,000,000	6% – 20%	–	$1,000 – $1,000,000
100	1550534400		Up to $5,000,000	–	24 – 72	Up to $5,000,000
100	1550534400		–	–	–	–
100	1550534400		$5,000 – $200,000	–	–	$5,000 – $200,000
100	1549411200		$50,000 – $12,000,000	–	24 – 96	$50,000 – $12,000,000
100	1548720000		Up to $100,000	–	–	Up to $100,000
100	1548720000		$10,000 – $300,000	–	–	$10,000 – $300,000
100	1545264000		Up to $250,000	–	3 – 24	Up to $250,000
6	1545350400		$15,000 – $1,500,000	–	6 – 36	$15,000 – $1,500,000
5	1545177600		$5,000 – $300,000	9% – 35%	Varies by product	$5,000 – $300,000
4	1545177600		$5,000 – $500,000	4.96% – 24.93%	1 – 60	$5,000 – $500,000
5	1545264000		$500 – $10,000	12.99% – 34.99%	9 – 60	$500 – $10,000

		Provider	Loan Amount	Rate	Term (Months)	Rating
0	0		Up to $50,000	Prime – 35%	3 – 120	Up to $50,000
3	1632960000		Min. $10,000	6.93% – 19.99%	18 – 96	Min. $10,000
8	1624233600		$5,000 – $75,000	–	12 – 96	$5,000 – $75,000
17	1607558400		$500 – $50,000	Varies	6 – 60	$500 – $50,000
100	1582761600		–	–	36 – 96	–
6	1582761600		–	–	–	–
100	1581033600		–	–	–	–
100	1580688000		–	Starting at 12.9%	–	–
100	1579478400		–	–	–	–
100	1579478400		–	–	–	–
100	1579478400		–	–	–	–
100	1578873600		–	Starting at 10.99%	–	–
100	1578873600		–	–	–	–
100	1551830400		Starting at $5,000	–	–	Starting at $5,000
100	1552262400		Up to $1,000,000	–	up to 96	Up to $1,000,000
100	1551830400		–	–	6 – 96	–
100	1551830400		$10,000+	–	12 – 96	$10,000+
100	1551830400		Up to $1,000,000	–	Up to 15 years	Up to $1,000,000
100	1577059200		–	–	–	–
100	1577059200		–	–	–	–
100	1575849600		–	–	–	–
100	1575849600		$5,000 – $45,000	4.90 % – 29.95%	–	$5,000 – $45,000
100	1575849600		–	–	–	–
100	1575590400		–	–	–	–
6	1569974400		–	Up to 29.99%	12 – 96	–
100	1561507200		–	–	–	–
1	1560124800		Up to $100,000	3.99% - 19.9%	24 -96	Up to $100,000
100	1551830400		–	–	–	–
100	1548633600		–	Starting at 4.2%	–	–
5	1545264000		$500 – $10,000	12.99% – 34.99%	9 – 60	$500 – $10,000
100	1545177600		–	–	12 – 84	–

		Provider	Loan Amount	Rate	Term (Months)	Rating
0	0		Up to $50,000	Prime – 35%	3 – 120	Up to $50,000
100	1578873600		Up to $50,000	–	24 – 60	Up to $50,000
100	1545264000		Up to $50,000	–	–	Up to $50,000

		Provider	Loan Amount	Rate	Term (Months)	Rating
0	0		N/A	N/A	N/A	N/A
3	1726531200		$5,000 +	6% – 16%	12 – 60	$5,000 +
7	1708473600		–	–	–	–
5	1700524800		–	-	-	–
100	1695945600		–	–	–	–
4	1690934400		–	–	–	–
2	1688601600		Min $110,000	4.14% – 6.29%	24– 120	Min $110,000
3	1679616000		$100,000 – $2,000,000	Varies	12 – 60	$100,000 – $2,000,000
100	1627344000		–	4.50% – 5.97%	12 – 60	–
100	1581033600		–	4.19% – 6.04%	12 – 120	–
100	1580860800		–	–	–	–
100	1580860800		–	2.99% – 5.49%	6 – 60	–
100	1580860800		$50,000+	–	12 – 120	$50,000+
100	1580860800		–	–	–	–
100	1580860800		–	–	–	–
100	1580860800		–	–	–	–
100	1580688000		–	–	6 – 60	–
100	1579478400		–	4.54% – 7.49%	6 – 120	–
100	1578873600		–	–	–	–
100	1577059200		–	Varies	–	–
100	1577059200		–	–	–	–
100	1577059200		–	–	–	–
100	1577059200		–	4.49% – 6.63%	1 – 10 years	–
100	1574985600		$10,000 – $1,000,000	4.99% – 7.29%	12 – 120	$10,000 – $1,000,000
100	1574899200		–	–	12 – 60	–
100	1574899200		–	4.24% – 6.30%	–	–
100	1560124800		–	4.64% – 5.80%	1 – 10 years	–
100	1548806400		$10,000 – $3,000,000	Varies	12 – 24	$10,000 – $3,000,000
100	1548720000		–	–	12 – 60	–
1	1517097600		$10,000 – $500,000	Starting at 10%	–	$10,000 – $500,000

		Provider	Services	Rating
0	0		Debt Consolidation Program, Debt Settlement Program, Consumer Proposal, Bankruptcy Consultation	N/A (Referrer)
100	1732233600		Credit Counselling, Orderly Payment of Debts (OPD) Program
100	1576540800		Credit Counselling, Bankruptcy, Consumer Proposal
100	1576540800		Credit Counselling, Debt Management Program
100	1576368000		Credit Counselling, Debt Management Program
100	1576454400		Debt Restructuring, After Care - Credit Rebuilding Program, Corporate Debt Restructuring

When applying for new credit, a bad credit score can lead to lower approval chances, stricter repayment terms and higher interest rates. The same goes for car loans, which can be very expensive but necessary for most Canadian drivers these days.

Thankfully, there are plenty of ways to get approved for a bad credit car loan in Alberta, if you know where to look.

What is a Bad Credit Car Loan?

A car loan is a lump sum of liquid money that you can borrow from a lender, use to buy your car, then repay over time through divided installments with interest. Many dealerships also offer in-house financing plans, where you pay them directly and they will retain ownership over the car’s title until your debt is fully covered.

Normally, you get a bad credit score (300 – 600) when you don’t pay your existing debts on time or you’re a brand new credit user. It may also be the result of having your identity stolen or a more serious issue, like a consumer proposal or bankruptcy.

No matter the cause, bad credit can make it hard to get approved for any credit product with favourable conditions, because the lender/dealer could consider you a riskier client. This is especially true when it comes to a car loan, which can involve a lot of money, as well as a valuable asset (usually the car itself).

Essentially, a bad credit car loan helps you purchase the vehicle you’re looking for, despite these financial weaknesses, which would otherwise get you denied or approved for unappealing conditions through a prime lender, like a bank or credit union.

Check out what credit score you need for a car loan.

How Does a Bad Credit Car Loan Work?

A bad credit car loan works the same way as any car loan in Alberta, only with easier approval requirements. Generally, your odds of getting approved are more dependent on your overall financial health, rather than your credit (although the lender/dealer may still perform a credit check when you apply).

That said, it’s important to understand that applying with a low credit score can have an impact on your bad credit car loan. Remember, even though it’s not as difficult to get approved by a bad credit friendly lender or dealership, the fact that you qualify as a “risky” borrower can lead to less appealing loan conditions.

Take a look at these common loan factors, which bad credit can affect in different ways:

• Loan Amount – Bad credit lenders/dealers sometimes offer smaller loans than traditional lenders. Many are private businesses that cannot provide as much financing, while others want to decrease the level of risk they’re taking by accepting clients with less creditworthiness. Either way, a bad credit car loan may not be large enough to cover all your vehicle’s costs, including its retail price.
• Down Payment – When applying for a traditional car loan, a down payment isn’t always required, if you have a good income and credit score. However, since having bad credit could mean you’re more likely to default on your loan, a down payment of at least 10% – 20% may be mandatory. Sadly, not everyone can afford to pay such a huge amount upfront.
• Interest Rate – Every lender/dealer charges different rates for car loans. They can be ‘fixed’ (won’t change during your payment term) or variable (they fluctuate with Canada’s prime borrowing rates). Because more risk is involved, bad credit car loans usually come with higher rates, which can significantly increase the size of your payments and the final cost of your loan.
• Term Length – Bad credit car loans sometimes have shorter terms and higher payments. Lenders and dealers may not be open to negotiation and penalties can apply if you don’t pay on time. You may qualify for a longer-term if you can prove that you’re responsible and have a decent income. Nevertheless, an 84-month term leads to more interest overall than a 48-month term.

How Can I Get a Bad Credit Car Loan in Alberta?

There are a few borrowing options for bad credit car loans in Alberta. Don’t forget to research each option properly before you commit to applying:

Banks & Credit Unions

While vehicle financing isn’t always possible, you may be able to qualify for a large personal loan through your financial institution. This way, you can at least cover your down payment or finance part of your car.

Benefits:

• Better loan amounts, rates and terms than other financing sources
• Added security that comes with a highly regulated financial institution

Limitations:

• Approval can be harder if you aren’t a member or you have weak finances
• You may not be allowed to finance a vehicle located outside of a specific radius

Dealerships

As mentioned, many Alberta auto dealers have their own in-house financing plans, where you pay them directly instead of having to go through the hassle of qualifying with a third-party lender.

Benefits:

• Buying a new car or making a down payment can lead to good loan conditions and perks, like better warranties or having your administrative fees waived.
• Many different vehicles and financing options may be available.

Limitations:

• Bad credit can still lead to small loan amounts, higher rates and shorter terms
• Many different fees and taxes can apply with dealership financing
• Some dealerships don’t report to Canada’s credit bureaus

Alternative Lenders

If you can’t qualify with a prime lender or dealership, there are plenty of alternative lending companies that can offer you a bad credit car loan in Alberta.

Benefits:

• Easier requirements and application process than other vehicle financing sources
• Loan approval and payments can often be completed entirely online

Limitations:

• Higher interest rates may apply to less appealing loan conditions
• Harder to regulate than some financial institutions, prime lenders and dealerships

Things to Know Before You Apply For a Bad Credit Car Loan

Despite the easier approval requirements of a bad credit car loan, it’s essential not to forget about the responsibilities and costs you could encounter along the way, which can be hard on your finances if you’re not prepared. Here are some things you should know and do prior to applying for a bad credit car loan in Alberta:

• Figure Out Your Budget – A car loan can severely drain your savings and leave you with a lack of money for your other expenses. Remember to get a price quote and confirm the size of your payments beforehand to avoid any problems. If your payments would be too much for your budget to handle, think about getting a smaller loan or a cheaper car.
• Understand the Costs – While price and loan principal can be daunting enough, you must also factor your down payment, interest rate, fees and taxes into your budget to get the full scope of the vehicle’s cost. Actually, the interest, fees and taxes alone can add well over $1,000 to your car’s final price tag. Plus, there are all the future costs to consider, such as gas, car insurance, and maintenance and repairs.
• Don’t Be Fooled By Longer Terms – Generally, longer vehicle financing terms are accompanied by lower loan payments, which many drivers find more affordable initially. Then again, a longer-term means you’ll pay more interest. This is particularly dangerous with some bad credit car loans in Alberta because they tend to come with higher rates.
• Check Your Lender’s Reputation – Small dealerships and alternative lenders are hard for the government to regulate. Scammers and identity thieves may use your need for a car to coax you into buying a fake loan or charge you predatory rates. Always check your potential lender’s business credentials and customer reviews before giving away any personal or financial information.
• Check Your Credit – Equifax and TransUnion hold different versions of your credit score, either of which you can monitor for a fee. You can also check both copies of your credit report for fraud, identity theft or errors that may be hurting your score (you’re entitled to one free yearly copy from each bureau). This way, you’ll have a better idea of what kind of car loan you’ll qualify for.
• Get Quotes – Any good lender or dealership should be able to give you a basic price quote for your vehicle and/or loan payments. Some websites even have a free cost calculator. However, this won’t be an exact quote. You may need to go through a full financial evaluation process to see a more precise figure. Plus, bad credit can increase the cost of an otherwise standard car loan.

Qualifying For a Bad Credit Car Loan in Alberta

Every lender/dealership has different approval standards. Luckily, a bad credit car loan can be easier to acquire than a traditional car loan. That said, even a smaller bad credit car loan can equal a large amount of money and risk for the lender. So, here are a few simple but essential steps to prepare yourself for the approval process:

• Have a clean Canadian driver’s history
• Be past the age of majority in your province/territory (18 – 19+)
• Research multiple lenders/dealers (online and offline) to find the best deal
• Pay down as much of your existing debt as possible
• Have the same job for at least a few months and earn a steady income

During the application process, the lender/dealer may want to inspect your:

• Driver’s license
• Credit report & score
• Most recent bank statements
• Debt payment history
• Employment history
• Desired car’s specifications (year, VIN #, value, etc.)
• Investments, assets & liabilities

Increase Your Chances of Being Approved For a Bad Credit Car Loan

While many lenders/dealers will still consider you, bad credit can make it tough to get approved for a favourable car loan in Alberta, especially if you have a history of missing payments. Unfortunately, a good income can only do so much for your application.

Don’t worry, there are several ways to earn better approval chances, such as:

• Offer a larger down payment – The more money you put down, the shorter your term will be, the less interest you’ll and the more creditworthy you’ll be considered. Save at least 10% – 20% of the car’s sales price for the best results.
• Trade-In Your Car – If your current vehicle has resale value, some dealerships will let you trade it in for a lower price on your next car. Although you won’t get what the car is truly worth, this can also increase your approval chances.
• Opt For a Cheaper or Used Car – There are plenty of lower-priced vehicles in Alberta, any of which can reduce the interest and fees you have to pay. A used car or a less luxurious car can even help you save on insurance, fuel, and maintenance.
• Get Pre-Approved – If you’d like to save yourself the trouble of applying, only to get denied, getting pre-approved in-person or online is the easiest way to find out if you’ll actually qualify for appealing bad credit loan conditions.
• Find a Cosigner – If you can’t get approved alone, someone with better credit and finances can co-sign your application. However, they must agree to take over your payments if you can’t afford them (this can affect their finances).

Additional Reading

Car Loans 101: Check Your Credit Scores First

What Is The Average Car Loan Interest Rate In Canada?

Should You Get a 0% Car Loan?

Bad Credit Card Loan FAQs

Searching For a Bad Credit Car Loan in Alberta?

Loans Canada can help you find reputable lenders and dealerships, as well as the best interest rates and loan conditions in your neighbourhood.