Bad Credit Car Loans Mississauga, Ontario

📅 Last Updated: August 26, 2024

✏️ 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
9	1718582400	$100 to $1500	24%	Next payday	$100 to $1500
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
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 months	$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	+18.9% APR	6 - 60	$500 - $15,000
100	1642723200	up to $1,500	-	-	up to $1,500
100	1734610143		29.9% - 46.9% APR	12 - 60
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
16	1580774400	$1,000 - $25,000	8.99% - 34.99% APR	36 or 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
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	29.99% to 46.93% 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	Varies by province	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 $60,000	19.99% - 39.99%	6 - 120	Up to $60,000
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	-Up to 48.99%	Up to 60 months	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 $5,000	47.72%	-	Up to $5,000
4	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	1725321600	up to $40,000	-	-	up to $40,000
8	1714089600	$10,000 +	4%-45%	90 days+	$10,000 +
7	1714089600	$10,000 to $2,000,000	10%+	Up to 36	$10,000 to $2,000,000
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-$300,000	15% - 25%	4 - 24	$5,000-$300,000
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	varies	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	starting at 0%	3 - 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
3	1726531200	$15,000 +	6% - 16%	12 - 60	$15,000 +
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	-
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.

Car Loan Calculator

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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