Bad Credit Car Loans Mississauga, Ontario

Refinancing A Car Loan

📅 Last Updated: November 16, 2023

✏️ Written By Corrina Murdoch

🕵️ Fact-Checked by Caitlin Wood

Table of Contents show

Bad Credit Car Loans Mississauga - Compare Providers

		Loan Amount	Rate	Term (Months)	Rating
0	0	Up to $50,000	Prime – 46.96%	3 - 120	Up to $50,000
100	1709683200	up to $1,250	12%-32%	90 - 150 days	up to $1,250
23	1700524800	$5,000 - $25,000	24.99% - 29.99%	30 or 60	$5,000 - $25,000
21	1700524800	$1,000 - $5,000	46%	9-24	$1,000 - $5,000
15	1695254400	$1250	16.06% (nominal) - 31.99% (effective)	3 - 5	$1250
11	1692748800	Up to $250	0%	Up to 61 days	Up to $250
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 months	$15,000
1	1670889600	$1,000 - $10,000	19.9% - 46.9%	-	$1,000 - $10,000
7	1666051200	$150	0%	-	$150
100	1643932800	$500 - $15,000	+18.9% APR	6 - 60	$500 - $15,000
100	1642723200	up to $1,500	-	-	up to $1,500
13	1639094400	$1,000 - $15,000	29.9% - 46.9% APR	12 - 60	$1,000 - $15,000
30	1637280000	$5,000 - $50,000	5.75% - 22.99%	Up to 84	$5,000 - $50,000
100	1623369600	Varies	0%	6 or 8 weeks	Varies
2	1620777600	Up to $35,000	9.99% - 46.96%	6 - 60	Up to $35,000
17	1607558400	$500 - $50,000	6.99% - 46.99%	12 - 36	$500 - $50,000
100	1600646400	$1,000-$7,500	12.99% - 29.99%	24 - 60	$1,000-$7,500
100	1598918400	$1,000 - $15,000	-	-	$1,000 - $15,000
100	1598832000	$500 – $15,000	+ 25.99%	9 - 60	$500 – $15,000
100	1595980800	$200 - $1,200	25% - 32%	-	$200 - $1,200
100	1551830400	Up to $500,000	5.75% – 9.9%	negotiable	Up to $500,000
100	1594684800	$100 - $2,000	0%	-	$100 - $2,000
100	1593561600	-	0+	2 - 60	-
100	1589155200	$2,500	15.65% AIR	13 - 26	$2,500
100	1582243200	-	-	Up to 60	-
100	1581033600	$5,000+	-	Up to 60	$5,000+
100	1580947200	-	-	-	-
100	1580860800	$500 - $5,000	-	12 - 24	$500 - $5,000
100	1580860800	$350 - $1,000	-	2 - 12 weeks	$350 - $1,000
9	1580860800	$1,600 - $25,000	19.99% APR	36 - 60	$1,600 - $25,000
16	1580774400	$1,000 - $25,000	7.5% - 31.5% APR	36 - 60	$1,000 - $25,000
100	1579478400	$100 - $1,500	-	-	$100 - $1,500
100	1579478400	Up to $5,000	29.78% - 44.8%	36 months	Up to $5,000
100	1579219200	$100 - $25,000	+4.9%	-	$100 - $25,000
100	1579219200	-	15% - 19%	-	-
100	1576713600	-	Up to 35%	-	-
18	1576713600	$500 - $100,000	6.99% - 14.99%	12 - 240	$500 - $100,000
100	1575590400	1800- 2900	15.99%	23 - 36	1800- 2900
100	1562198400	$500 - $15,000	15.99 - 39.99%	6 - 60	$500 - $15,000
100	1560124800	Up to $15,000	29.99% - 46.96%	9 - 60	Up to $15,000
17	1545955200	Up to $20,000	18.99% - 24.99%	36 - 84	Up to $20,000
19	1552262400	$1,000 - $15,000	29.9% or 46.90%	6 - 60	$1,000 - $15,000
100	1551830400	$100 - $1,000	546% APR	14 days	$100 - $1,000
100	1569974400	$500 - $50,000	15 - 30%	-	$500 - $50,000
100	1551830400	$1,000 - $15,000	19% - 46.95%	6 - 60	$1,000 - $15,000
100	1551398400	Up to $1,500	15% - 19%	14 days	Up to $1,500
100	1551398400	$100 - $1,500	15% - 17%	14 -31 days	$100 - $1,500
100	1551398400	$500 - $1,000	28% - 32%	-	$500 - $1,000
100	1551398400	-	-	14 days	-
18	1546128000	Up to $5,000	19.9% - 45.9% APR	6 - 36	Up to $5,000
100	1551139200	$250 -$1,250	29%	3 - 6	$250 -$1,250
100	1551139200	$5,000 - $35,000	9.9%+	6 - 60	$5,000 - $35,000
15	1551139200	Up to $15,000	19.99% APR	Open-end	Up to $15,000
100	1550534400	$300 - $25,000	7.95%+	36 - 60	$300 - $25,000
100	1550534400	$100 - $1,500	-	14 days	$100 - $1,500
100	1569974400	Up to $1,500	15% - 17%	up to 62 days	Up to $1,500
100	1550534400	Up to $1,500	Up to 59% APR	14 days	Up to $1,500
19	1550534400	$2,500 +	-	-	$2,500 +
100	1550534400	$500 - $1,000	28% - 32%	3 -5	$500 - $1,000
100	1550534400	$300 - $1,000	38% APR	3 - 4	$300 - $1,000
100	1549411200	$100 - $1,000	546% APR	14 days	$100 - $1,000
100	1549411200	$1,000 -$15,000	46.93%	12 - 60	$1,000 -$15,000
100	1567555200	$300 - $3,000	18% + fees	6	$300 - $3,000
100	1549238400	$500 - $1,000	28% - 32%	4 - 5	$500 - $1,000
100	1549238400	$100 - $1,500	90% - 390% APR	14 days	$100 - $1,500
100	1549238400	$250 - $1,000	29% APR	3 - 4	$250 - $1,000
20	1548720000	$500 - $1,000,000	7.9%	12	$500 - $1,000,000
100	1548720000	$1,000 - $50,000	4.6% – 49.96%	3 - 60	$1,000 - $50,000
100	1548633600	$300 - $7,500	29.9% - 39.9%	6 - 60	$300 - $7,500
100	1548633600	$50 - $1,500	-	14 days	$50 - $1,500
100	1545955200	Up to $20,000	19% - 49%	36 - 48	Up to $20,000
16	1545264000	$2,000 - $10,000	18.9% - 54.9%	12 - 60	$2,000 - $10,000
5	1545264000	$500 - $10,000	12.99% – 39.99%	9 – 36	$500 - $10,000
100	1545264000	$500 – $10,000	Starting at 9.90%	12 - 36	$500 – $10,000
2	1543622400	Up to $50,000	19.99% - 39.99%	6 - 120	Up to $50,000
100	1545177600	$2,000 – $10,000	34.9% - 43%	12 - 60	$2,000 – $10,000
10	1545264000	$500 - $12,500	19.99%+	12 - 60	$500 - $12,500
100	1545350400	Up to $1000	30%	3 - 5	Up to $1000
100	1545350400	Up to $5,000	60%	6 - 60	Up to $5,000
100	1545350400	Up to $3,000	22% - 35%	3 - 4	Up to $3,000
100	1545350400	Up to $7,000	-	6 – 60	Up to $7,000
100	1545350400	$500 - $2,500	29% - 46.95%	6 - 36	$500 - $2,500
5	1545350400	$500 - $1000+	28%-32%	3	$500 - $1000+
100	1545350400	$500 – $750	28% – 34.4%	3	$500 – $750
100	1545350400	$500 – $750	23% - 34.4%	3 – 12	$500 – $750
100	1545350400	$300 - $1500	27% - 35%	3 - 4	$300 - $1500
4	1545264000	$500 - $100,000	Starting at 29.99%	9 - 84	$500 - $100,000
3	1545264000	Up to $3,500	47.72%	-	Up to $3,500
2	1568937600	$1,500 – $10,000	Varies by province	Varies	$1,500 – $10,000
10	1545177600	$1,000 - $35,000	5.99% - 29.19%	36 - 60	$1,000 - $35,000
18	1545177600	$100 - $20,000	Up to 46.8%	Up to 60	$100 - $20,000

		Loan Amount	Rate	Term (Months)	Rating
0	0	Up to $50,000	Prime – 46.96%	3 - 120	Up to $50,000
3	1697414400	Up to $800,000	9% - 49.99%	3, 6, 9, or 12	Up to $800,000
2	1669852800	$5,000 - $300,000	-	3 - 24 months	$5,000 - $300,000
100	1648512000	$10,000 - $250,000	Varies	6-12	$10,000 - $250,000
100	1620345600	-	-	12 - 60	-
100	1611878400	$5,000 - $30,000,000	-	Up to 18	$5,000 - $30,000,000
17	1607558400	$500 - $50,000	6.99% - 46.99%	6 - 36	$500 - $50,000
100	1603756800	-	-	-	-
100	1598918400	-	-	-	-
100	1592438400	-	-	-	-
100	1585612800	-	0.9% - 12%	6 months - 5 years	-
100	1581984000	$10,000 - $10,000,000	6% - 12.5%	-	$10,000 - $10,000,000
100	1581292800	-	-	-	-
100	1581033600	-	-	-	-
100	1581033600	-	-	-	-
100	1581033600	-	-	-	-
100	1580947200	-	-	-	-
100	1580947200	$10,000 - $1,000,000	-	-	$10,000 - $1,000,000
100	1580860800	-	-	-	-
100	1580860800	-	-	-	-
100	1580860800	-	-	-	-
100	1580860800	-	-	-	-
100	1580860800	-	-	-	-
100	1580860800	$5,000 - $1,000,000	-	-	$5,000 - $1,000,000
100	1580860800	-	-	-	-
100	1580860800	-	-	-	-
100	1580860800	up to $250,000	-	-	up to $250,000
100	1580860800	-	-	-	-
100	1580688000	Up to $10,000	-	-	Up to $10,000
100	1580256000	$5,000 - $500,000	-	6 - 18 months	$5,000 - $500,000
100	1579478400	-	-	-	-
100	1579478400	$10,000- $30,000,000	Min 4.95%	-	$10,000- $30,000,000
100	1579478400	-	-	12 - 120	-
100	1579478400	-	-	24 to 60	-
100	1579478400	-	-	-	-
100	1579478400	-	-	-	-
100	1579046400	-	-	-	-
100	1578873600	-	-	-	-
100	1577059200	-	-	-	-
100	1577059200	-	-	-	-
100	1577059200	-	-	-	-
100	1575849600	$5,000 - $150,000	15% +	6 - 24	$5,000 - $150,000
100	1575849600	Up to $250,000	-	-	Up to $250,000
100	1575590400	-	-	-	-
100	1575590400	-	-	-	-
1	1545955200	$5,000 - $150,000	Fee-Based: Starting at 9%	12 - 60	$5,000 - $150,000
100	1552262400	$500,000 - $10,000,000	-	-	$500,000 - $10,000,000
100	1552262400	-	Competitive	-	-
100	1552262400	-	-	-	-
100	1552262400	Up to $250,000	-	Up to 10 years	Up to $250,000
100	1552262400	-	-	-	-
100	1552262400	Up to $1,000,000	-	-	Up to $1,000,000
100	1551830400	Up to $100,000	-	-	Up to $100,000
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 10 years	Up to $500,000
100	1551830400	$5,000 - $10,000	-	Up to 7 years	$5,000 - $10,000
100	1551398400	$3,500+	-	-	$3,500+
100	1551398400	$5,000+	4.9% - 24.99%	18 - 48	$5,000+
100	1551398400	$10,000 - $1,000,000	4% - 14%	12 - 84	$10,000 - $1,000,000
100	1551139200	Up to $75,000	-	Up to 18	Up to $75,000
100	1550534400	$500-$50,000	0.5% weekly	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	4.5%	24 - 72	Up to $5,000,000
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	1549411200	$5,000 - $1,000,000+	-	1 - 60	$5,000 - $1,000,000+
100	1549238400	$5,000 - $1,000,000	-	3 - 24	$5,000 - $1,000,000
100	1548720000	$5,000 - $5,000,000	-	4 - 18	$5,000 - $5,000,000
100	1548720000	Up to $100,000	6.05% +	60	Up to $100,000
100	1548720000	$10,000+	18% - 22%	-	$10,000+
100	1548720000	$10,000 - $300,000	4.70% - 5.45%	-	$10,000 - $300,000
100	1548633600	Up to $5,000,000	5% - 10%	12 - 60	Up to $5,000,000
10	1545177600	$1,000 - $35,000	5.6% – 25.5%	36 – 60	$1,000 - $35,000
100	1545264000	$5,000 - $250,000	-	3-18	$5,000 - $250,000
100	1545264000	$5,000 - $150,000	-	3 - 24	$5,000 - $150,000
6	1545350400	$5,000 – $100,000	15% +	12 – 18	$5,000 – $100,000
100	1545264000	$5,000 – $100,000	Starting at 6.87%	3 – 18	$5,000 – $100,000
5	1545177600	$5,000-$250,000	8% - 29% APR	6 - 18	$5,000-$250,000
4	1545177600	$5,000 – $500,000	Starting at 5.9%	3 – 60	$5,000 – $500,000
5	1545264000	$500 - $10,000	12.99% – 39.99%	9 – 36	$500 - $10,000
100	1561507200	Up to $300,000	-	-	Up to $300,000

		Loan Amount	Rate	Term (Months)	Rating
0	0	Up to $50,000	Prime – 46.96%	3 - 120	Up to $50,000
2	1679529600	Varies	8.49% +	24 - 96 months	Varies
100	1643846400	up to $10,000	19.99%	12 - 36	up to $10,000
3	1632960000	Up to $50,000	15.99% +	12 -72	Up to $50,000
8	1624233600	Up to $50,000	29.99% – 46.96%	12 - 96	Up to $50,000
100	1610409600	-	-	-	-
17	1607558400	$500 - $50,000	-	24 - 60	$500 - $50,000
7	1606435200	$500 - $10,000	29.95%+	up to 48	$500 - $10,000
100	1600646400	$1,000-$7,500	12.99% - 29.99%	12 - 84	$1,000-$7,500
100	1594339200	-	-	-	-
100	1582761600	-	-	12 - 96	-
6	1582761600	-	11.9% - 22.9%	Up to 84	-
100	1582761600	-	0% - 29.5%	-	-
100	1581033600	-	+ 4.9%	-	-
100	1581033600	-	-	-	-
100	1580688000	-	-	-	-
100	1579478400	-	-	-	-
100	1579478400	-	-	-	-
100	1579478400	-	-	-	-
100	1579219200	-	-	-	-
100	1578873600	-	+8.99%	-	-
100	1578873600	-	-	-	-
100	1551830400	$5,000 - $10,000	-	up to 84	$5,000 - $10,000
100	1552262400	Up to $250,000	-	12 - 60	Up to $250,000
100	1552262400	Up to $1,000,000	-	up to 96	Up to $1,000,000
100	1551830400	Up to $100,000	-	6 - 96	Up to $100,000
100	1551830400	$10,000+	-	12 - 96	$10,000+
100	1551830400	Up to $1,000,000	-	up to 96	Up to $1,000,000
100	1577059200	-	-	up to 72	-
100	1577059200	-	-	-	-
100	1575849600	-	Starting at 4%	Up to 84	-
100	1575849600	$5000 - $45,000	4.90 % - 29.95% APR	36 - 72	$5000 - $45,000
100	1575849600	-	-	-	-
100	1575590400	-	-	-	-
100	1575504000	-	-	-	-
6	1569974400	$7500 - $59,995	3.95% +	12 - 96	$7500 - $59,995
100	1562112000	-	Up to 49.9%	-	-
100	1561507200	-	-	-	-
100	1561507200	-	-	Up to 84	-
1	1560124800	Up to $100,000	3.99% - 19.9%	24 -96	Up to $100,000
100	1551830400	Up to $30,000	-	-	Up to $30,000
100	1551830400	Up to $500,000	5.75% – 9.9%	negotiable	Up to $500,000
100	1550534400	-	-	-	-
100	1548720000	-	-	-	-
100	1548633600	-	4.2%+	-	-
100	1545955200	Up to $20,000	19% - 49%	36 - 48	Up to $20,000
5	1545264000	$500 - $10,000	12.99% – 39.99%	9 – 36	$500 - $10,000
100	1545177600	Up to $50,000	-	-	Up to $50,000
100	1545177600	$5,000 – $40,000	-	12 – 72	$5,000 – $40,000
100	1545177600	-	-	Maximum 84	-

		Loan Amount	Rate	Term (Months)	Rating
0	0	Up to $50,000	Prime – 46.96%	3 - 120	Up to $50,000
100	1578873600	$1,000 - $35,000	-	24 - 60	$1,000 - $35,000
100	1545955200	Up to $20,000	19% - 49%	36 - 48	Up to $20,000
100	1545264000	Up to $25,000	-	12 - 60	Up to $25,000

		Loan Amount	Rate	Term (Months)	Rating
0	0	N/A	N/A	N/A	N/A
7	1708473600	Varies	Varies	1 - 10 years	Varies
5	1700524800	-	-	-	-
6	1696377600	-	5.69% +	-	-
100	1695945600	-	-	-	-
100	1695772800	-	-	-	-
4	1690934400	Varies	5.54%+	Varies	Varies
2	1688601600	Min $100,000	5.34%+	2 - 10 years	Min $100,000
3	1679616000	$100,000 - $2 million	Fixed, variable, or adjustable rates	1 - 5 years	$100,000 - $2 million
4	1541030400	-	Varies	6 months - 5 years	-
100	1627344000	-	1.94% - 2.45%	12 - 60	-
2	1620777600	Up to $35,000	-	-	Up to $35,000
100	1551830400	Up to $500,000	5.75% – 9.9%	negotiable	Up to $500,000
100	1581033600	-	2.74% - 6.30%	12 - 120	-
100	1580947200	-	-	-	-
100	1580860800	-	-	-	-
100	1580860800	-	2.64% - 4.45%	12 - 120	-
100	1580860800	$50,000+	2.74% - 3.49%	12- 120	$50,000+
100	1580860800	-	-	36 - 60	-
100	1580860800	-	-	-	-
100	1580860800	-	-	-	-
100	1580688000	-	2.79% - 6.00%	6 - 60	-
100	1580688000	-	2.74% - 4.45%	12 - 120	-
100	1580688000	-	-	-	-
100	1579478400	-	2.74% - 3.70%	6 - 120	-
100	1579132800	-	2.79% - 4.45%	-	-
100	1578873600	-	-	-	-
100	1578873600	-	2.69% - 3.95%	6 - 120	-
100	1578268800	up to 4,000,000	3.49% - 5.49%	12 - 300	up to 4,000,000
100	1577059200	$25,000 - $800,000	4.59% - 5.64%	6 - 60	$25,000 - $800,000
100	1577059200	-	-	-	-
100	1577059200	-	--	-	-
100	1577059200	-	2.84% - 7.30%	-	-
100	1574985600	$100,000 - $750,000	-	12 - 120	$100,000 - $750,000
100	1574899200	min 25,000	3.89.% - 4.84%	12 - 60	min 25,000
100	1574899200	-	2.23% - 4.45%	-	-
100	1560124800	-	2.89% - 3.79%	-	-
100	1548806400	$10,000 - $1,500,000	Varies	12 - 24	$10,000 - $1,500,000
100	1548720000	-	2.41% - 3.84%	-	-
100	1548720000	-	-	-	-
1	1517097600	$10,000+	Based on equity	-	$10,000+

		Services	Rating
0	0	Debt Consolidation Program, Debt Settlement Program, Consumer Proposal, Bankruptcy Consultation	N/A (Referrer)
100	1576540800	Credit Counselling, Bankruptcy, Consumer Proposal
100	1576540800	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

Even with diligent checking and best effort, bad credit can still happen. Often, it’s due to an unexpected financial issue like a job loss. When a person’s credit score falls below 580, they are classified as a low-credit individual. As a result, it can be difficult to get approved for any type of loan, even car loans which are often a requirement for Canadian consumers.

Bad Credit Car Loans

A bad credit car loan is a product for those with bad credit. Naturally, the higher your credit score, the better the terms of the loan. However, if there isn’t enough credit history or a poor credit track record, there are still ways to access a loan. Basically, a bad credit loan is where the terms may not be ideal, though you can still get a car loan. In every other way, it is just like a regular car loan.

Accordingly, the process is the same to apply. However, there are some differences you can expect. The first is that you are likely to need a much larger down payment. Since you are a higher-risk candidate for the loan, it makes sense to offer more collateral. Additionally, you are likely to be expected to pay a higher interest rate. This results in the total cost of your loan being higher.

Another common condition is a shorter loan period. This way, the lender can recuperate their money faster. It results in larger payments; and, with the higher rate of interest, it won’t save as much as shortening the term otherwise would. Though the shorter term is standard, there are also lenders who will allow a bad credit loan over a longer-term. This does reduce your regular payments; though, especially with the longest-term options (84 months), you will pay much more interest over time.

Factors to Consider When Getting a Bad Credit Car Loan

When you’re getting a car loan with bad credit in Mississauga, there are a few things to keep in mind. These include:

Monthly Budget: Consider your budget and what you are able to afford. Carefully weigh the value of the vehicle against the amount of interest you are going to be paying. While an 84-month arrangement has lower monthly expenses, it results in a substantially larger cost overall.
Costs: Take a look at all of your responsibilities according to the loan agreement. Check if there are associated fees. Look into the penalties related to default and late payments. Be sure to understand how interest plays into the loan and how much you will be paying overtime.
Long Term Impacts: With bad credit, you aren’t likely to get a good interest rate. As a result, if you go for a longer loan term, you will end up paying a great deal more.
Lender Reputation: It is important to thoroughly vet the company with which you’re doing business. Ensure that they have a proven track record and competitive rates. Use your resources and check loan comparison platforms to compare potential lenders.
Credit Score: Know your credit score before you approach potential lenders. Understand what you can expect and do your research on loan comparison sites ahead of time.

Where Can I Get a Bad Credit Car Loan?

There are a few different approaches to getting a bad credit car loan such as:

Credit Union

Often, your local credit union will make loans available to those with poor credit. These come in the form of personal and car loans, both of which can be put toward a car purchase. Keep in mind that there are restrictions, particularly in terms of accessibility. However, if you have an amenable credit union close by, it can be a good option. Check the membership policy of the specific business to ensure you qualify for the loan.

Dealership

It is relatively common to find a bad credit car loan through a dealership in Mississauga, especially in a used car situation. These businesses offer in-house financial arrangements. Usually, the rates are subpar and the terms are less competitive. In order to recuperate the funds safely, they often require a hefty downpayment. Another drawback is that, in certain cases, the payments aren’t put through the credit bureau. As a result, your payments won’t have a positive impact on your credit.

Alternative Lenders

The top option for bad credit car loans, especially in terms of accessibility, is through alternative lenders. These businesses accept bad credit and use other criteria to approve the loan. This lets you both use the payments toward improving your credit and own your vehicle. Usually, the system is straightforward and is very quick to get approval. However, in most cases, alternative lenders charge a higher rate of interest.

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How to Qualify For a Bad Credit Loan in Mississauga

The approval process for bad credit loans in Mississauga is fairly straightforward, with almost all loan applications being done online. There are customer service agents available to help if you have issues, though usually, it is very simple.

Simply fill in your financial information and personal details. These include your credit and banking information, residency proof, details on the vehicle, proof of insurance, and details on the down payment. Different lenders have different policies, so the specific requirements will vary.

How to Increase Your Chances of Being Approved for a Bad Credit Car Loan in Mississauga?

If you are worried about getting approved, there are some key steps you can take in order to improve your prospects. These include:

Increase your down payment: The top way to up your odds when applying for a loan is to offer more of a down payment. The more you are able to pay upfront, the more likely you are to get the business. All lenders do a level of risk management when considering whether to grant the loan. The more you can put down, the lower-risk you are as a loan candidate.

Trade-in your car: If you already have a car, a good route is to liquidate the value of the vehicle and apply that as a down payment toward the vehicle you’re buying. Especially if the car you already own is paid off, there is little downside. However, if you are looking to get multiple vehicles for a household, this may not be the best route.

Opt for a more budget-friendly option: If you are struggling to get approval, sometimes the best option is to shift your goal. Look into smaller vehicles or those with a lower price tag. If you are looking at a new car, it may be better to consider a pre-owned vehicle. By asking for a smaller loan, the risk is diminished for the lender and you are more likely to get approved.
Get pre-approved/quotes: The best way to enter into any loan situation is with as much information as possible. Look through loan comparison sites online and get actual quotes. It not only gives you the opportunity to know what you can expect from the loan, but some places actually offer pre-approval. It is quick to get the quotes and there is no cost involved.

Bad Credit Card Loan FAQs

My credit score is 500, can I get approved for a car loan?

Yes, credit scores of 500 can access a car loan, though the rates are subprime and down payment requirements are much higher. There is no minimum credit score for a car loan. There are many options, including alternative lenders and credit unions. With very low credit scores, usually, dealerships are less inclined to lend.

How can I get a car loan with no down payment and bad credit?

If you have bad credit and no down payment, you will likely have difficulty finding a lender that meets your needs. However, it is still possible to find a lender in this situation. Bear in mind that your car loan is likely to end up being quite expensive. It may be in your best interest to wait and save for a down payment or work to improve your credit score.

What is considered bad credit?

Bad credit is classed as anything that is lower than 580. There are ways to improve credit scores, such as getting a secured credit card. Over time, provided the lender reports your payments to the credit bureau, you can improve your credit score.

Final Thoughts

Now that you have a better idea about what to expect when getting a bad credit car loan in Mississauga, you can start the process. A great first step is visiting a loan comparison site. Find a service that doesn’t charge a fee and gives you actionable quotes on different loans. By researching and planning ahead, you can find a car loan that works for your situation. If you’re in the market for a car loan, Loans Canada can help.

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Glossary

TERM	DEFINITION
Appraisal	An appraisal involves assessing the value of a property based on current market values and is conducted by an appraiser that is typically assigned by a lender. The appraisal is then used by the lender to determine whether or not to extend a mortgage to a borrower.
Bridge Loan	A bridge loan is a type of short-term loan that may be used to “bridge” the gap between carrying a mortgage on an existing home and covering the mortgage for a new home. These are usually obtained when the closing dates of a home sale and purchase overlap, requiring the seller to continue paying the mortgage on the existing home before it closes while paying the mortgage on a new home.
Canadian Housing and Mortgage Corporation (CMHC)	A governing body in Canada that oversees and executes several federal housing projects in relation to the National Housing Act.
Cash-Back Mortgage	A cash-back mortgage allows borrowers to obtain the mortgage principal and a percentage of the loan amount in cash, which can come in handy to cover the cost of certain expenses, such as making home improvements or paying for car repairs. Rates on these types of mortgages tend to be higher compared to other home loans.
Closed Mortgage	A closed mortgage allows borrowers to prepay only a certain amount of the principal without being charged a prepayment penalty fee. Fixed-rate closed mortgage prepayment penalties are usually 3-months’ worth of interest or the interest rate differential, whichever of the two is greater.
Closing Costs	Before a real estate transaction closes, certain closing costs will need to be paid, which can include real estate commissions, lawyer fees, land transfer taxes, appraisal fees, home inspection fees, adjustments, and others.
Conditional Offer	A conditional offer is not yet final and means that there are certain conditions that must be fulfilled by the buyer, seller, or both before the sale is considered “firm.” For instance, an offer could be conditional on the home being inspected, which the buyer must be satisfied with.
Construction Mortgage	A construction mortgage allows borrowers to finance the cost of construction of a new home or major renovations.
Debt Ratio	Your debt ratio determines your ability to pay off a mortgage by measuring your debt relative to your income. Lenders look at debt ratios to assess a borrower’s ability to make mortgage payments. A high debt ratio means your debt load is too high relative to your income. Gross debt service ratio refers to your debt that does not include a mortgage payment, and total debt service ratio refers to your total debt including mortgage payments.
Deed	A deed is a document signed by the seller that transfers ownership from the seller to the buyer.
Down Payment	A down payment is the money that is put toward the purchase price of a home. The required down payment will depend on a number of things, such as the type of mortgage being taken out and the cost of the house.

TERM	DEFINITION
Firm Offer	An offer goes “firm” after all conditions have been satisfied and signed off by all parties. A sale can also be immediately firm if no conditions are included.
Fixed-Rate Mortgage	A fixed-rate mortgage means that the interest rate does not change throughout the entire mortgage term. Even if posted interest rates go up or down during the term, your rate will be locked in and stay the same until the term ends.
Foreclosure	Foreclosure is an unfortunate situation in which a homeowner loses possession of the title of their home as a result of mortgage payment defaults. When mortgage payments are missed, the foreclosure process may begin after a certain number of days have passed. In this case, the lender can take over the home under a “power of sale,” after which the homeowner may still have a chance to make good on their mortgage payments and bring their debt up to par. Otherwise, the lender may make efforts to sell the property to recover any money they are owed.
Gross Debt Service Ratio	A gross debt service ratio is the measure of housing-related debt relative to a borrower’s income. GDSR is a factor that lenders consider when determining whether or not to approve a mortgage application.
High-Ratio Mortgage	A high-ratio mortgage refers to a mortgage in which the principal is greater than 80% of the property’s value. That means more than 80% of the home’s value must be borrowed in order to buy a home, while the down payment is less than 20% of the property value. High-ratio mortgages require mortgage default insurance to be paid.
Home Buyers’ Plan (HBP)	The First-Time Home Buyers’ Plan (HBP) is a government incentive program that allows first-time homebuyers to withdraw up to $25,000 from their Registered Retirement Savings Plan (RRSP) – or $50,000 in total for first-time home buyers and their partner – to buy or build a home. The full amount withdrawn must be repaid within 15 years.
Home Equity	The equity in a home represents the value of the property, less total outstanding debt, that the owner actually owns outright. It is calculated by subtracting the total mortgage loan amount still owed by the property’s value.
Home Equity Line of Credit (HELOC)	Using the equity in your home, you can secure a line of credit that uses the equity as collateral. The credit limit is usually equivalent to a particular percentage of your home’s value and there is a set date when the loan must be repaid. If you default on this kind of loan, the lender can repossess your home and sell it to cover the owed debt. Since there is a high risk with this type of financing, it is typically used to finance big purchases such as home improvements, education, or medical expenses.
Home Inspection	Many conditions can be inserted into a purchase agreement, including a home inspection. The home inspection allows buyers some time to have the property assessed by a professional to uncover any potential issues with the home before the buyer is obligated to complete the purchase.

TERM	DEFINITION
Interest	Interest is added to the principal amount of the mortgage and is paid to the lender in exchange for access to the funds needed to complete a real estate purchase. Interest is charged from the moment the money is received to the moment the term expires.
Land Transfer Tax	Land transfer taxes are charged by the province in which the property is being purchased, as well as in certain municipalities. It is a type of tax that is based on the purchase price of the property, though these taxes vary by province. First-time homebuyers are sometimes exempt from paying the entire land transfer tax amount and may be eligible for a rebate.

TERM	DEFINITION
Maturity Date	The maturity date is the date when the mortgage term ends. It is at this point that the mortgage must either be paid in full, refinanced, or renewed for a new term.
Mortgage	A mortgage is a loan that is provided by a lender to help a homebuyer complete a home purchase. Lenders provide a certain amount of money required to cover the cost of a home’s purchase price while charging interest on the principal amount. The loan is collateralized by the property itself. The mortgage must be repaid according to the terms of the contract. If the loan amount cannot be repaid according to the terms, the lender has the right to repossess the property and sell it to recoup any losses.
Mortgage Broker	A mortgage broker is a professional who works on behalf of the borrower and finds the best mortgage product and lender among their network of lenders.
Mortgage Default Insurance	Mortgage default insurance is designed to protect the lenders when a borrower is unable or unwilling to repay their mortgage. This is applicable to high-ratio mortgages where the down payment amount is less than 20% of the purchase price of the property and does not apply to conventional mortgages. Borrowers are responsible for this payment.
Mortgage Discharge	A mortgage discharge is issued by the lender when the mortgage is paid off in full by the borrower. When the mortgage is fully repaid, it is discharged from the title to the property and certifies that the property is completely free from the mortgage debt
Mortgage Life Insurance	Mortgage life insurance is an optional policy that borrowers may take out. It is designed to reduce or pay off the mortgage amount (up to a certain amount) in the event of the borrower’s death.
Mortgage Payment	A mortgage payment is the regular payment borrowers are required to make to pay off their home loan. These payments can be made monthly, semi-monthly, biweekly, or weekly, and include both principal and interest.
Mortgage Pre-Approval	A mortgage pre-approval involves having your credit and finances checked out before you formally apply for a mortgage once you agree to purchase a particular home. It allows you to find out how much can be afforded, how much the lender is willing to lend, and the interest rate that may be charged. Pre-approvals expire within 90 to 120 days after they are issued and are not a guarantee of final mortgage approval.
Mortgage Principal	The mortgage principal represents the amount of money borrowed from a lender and does not include the interest portion.
Mortgage Statement	Lenders typically submit a mortgage statement to borrowers on a yearly basis that details the status of the mortgage, including how much has been paid and the principal on the mortgage that still remains.
Mortgagee	The mortgagee is a mortgage lender.
Mortgagor	The mortgagor is the borrower.
Multiple Listing Service (MLS)	The Multiple Listing Service (MLS) is a database of listings where real estate professionals market properties they have for sale and search for properties for sale for their clients.
Offer	The offer represents the purchase agreement that the buyer submits to the seller and that the seller can either accept, reject, or negotiate with the buyer. The offer includes the offer price, deposit amount, closing date, conditions, and other items pertinent to the transaction.
Open Mortgage	An open mortgage allows borrowers to repay their loan amount in part or in full without incurring any prepayment penalty fees. Open mortgages tend to have higher interest rates compared to closed mortgages but are more flexible.
Posted Rate	The posted rate is the lender’s benchmark advertised interest rate for mortgage products offered. These are not necessarily set in stone, but may be negotiated with the lender.
Prepayment	Prepayment is made when some or all of the loan amount is paid off before the end of the mortgage term. Most open mortgages can be paid off early without any prepayment penalty charges, but prepaying a closed mortgage typically comes with a prepayment charge. However, most closed mortgages allow an annual prepayment of anywhere between 10% to 20% without any penalty.
Prepayment Charge	When all or part of a closed mortgage is paid off before the end of the mortgage term, a prepayment charge may have to be paid to the lender.
Prime Rate	The prime rate advertised by a lender is typically based on the Bank of Canada’s interest rate that is set each night, which may change at any time.
Property Insurance	Property insurance must be paid on a home throughout the mortgage term. Lenders require a policy to be held on a property before they agree to extend a mortgage, and the lender must be named on the policy. This type of insurance covers the cost of any repair or replacement as a result of damage to the home from fire or other disasters.
Property Tax	Property taxes are paid by homeowners to their respective municipalities to cover the cost of things such as police, garbage collection, policing, schools, and fire protection. The property tax amount paid is based on the property’s value and the rate charged by the municipality.

TERM	DEFINITION
Qualifying Rate	A qualifying rate is the interest rate that a lender uses to assess a borrower’s eligibility for a mortgage and to calculate your debt-service ratio.
Renewal	When the term of a mortgage expires, another term may be negotiated with the lender. If the mortgage is not renewed, it must be paid off in full.
Reverse Mortgage	Homeowners over the age of 55 can use a reverse mortgage to borrow as much as 50% of the home’s value to be used to pay for other expenses. Payments are not made on a reverse mortgage, but interest can accrue on the loan amount until the property is sold or until the homeowner passes away.
Second Mortgage	A second mortgage may be taken out on a home that already has a mortgage on it. The funds accessed through a second mortgage from the home’s growing equity may be used to cover other expenses, such as home renovations, but they carry more risk than first mortgages.
Statement of Adjustments	The statement of adjustments outlines the purchase price, deposit, and any financial adjustments that are required for taxes, utilities, or condo fees that have been prepaid by the seller and payable by the buyer to compensate the seller for fees already covered on the home.
Survey	A survey is a plan of the property’s lot that shows the lot size and where the property boundaries and building structures lie. It will also show where any easements, right-of-ways, or overhanging structures from adjacent properties that could impact the value of the home.
Term	The mortgage term is the period of time that you are committed to your mortgage with your lender, including the interest rate. When the term expires, the mortgage either needs to be paid off in full, refinanced, or renewed, either with the same lender or a new one. The average term is 5 years, though it can range anywhere from 1 to 10 years.
Title	Title is the ownership provided to a homeowner when a property is purchased. A clear title is required by lenders before a mortgage is extended. If there are any issues with the property’s title, they must be resolved before the transaction closes.
Title Insurance	Title insurance is meant to protect lenders and buyers from issues on the title that are discovered after the transaction closes. Title issues can include title fraud, encroachments, municipal work orders, or zoning violations. If title insurance is purchased, it will be added to the closing costs.
Total Debt Service Ratio	The total debt service ratio refers to the percentage of gross annual income needed to cover all debts in addition to the mortgage payments (including principal, interest, taxes, utilities, and more).

TERM	DEFINITION
Variable-Rate Mortgage	With a variable-rate mortgage, the interest rate will fluctuate based on a financial index. Monthly payments could remain the same, but the amount paid toward interest versus principal could change. If rates increase, more money is paid toward interest, but if rates decrease, more money goes toward the principal.