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Provider | Loan Amount | Rate | Term (Months) | Rating | |||
---|---|---|---|---|---|---|---|
0 | 0 | Up to $50,000 | Prime – 46.96% | 3 - 120 | |||
100 | 1709683200 | up to $1,250 | 12%-32% | 90 - 150 days | |||
23 | 1700524800 | $5,000 - $25,000 | 24.99% - 29.99% | 30 or 60 | |||
21 | 1700524800 | $1,000 - $5,000 | 46% | 9-24 | |||
15 | 1695254400 | $1250 | 16.06% (nominal) - 31.99% (effective) | 3 - 5 | |||
11 | 1692748800 | Up to $250 | 0% | Up to 61 days | |||
8 | 1688083200 | $150 - $1,600 | 10 - 35% | 3 - 6 | |||
100 | 1686182400 | $300 - $3,000 | 18% + fees | 6 | |||
100 | 1686182400 | $300 - $3,000 | 18% + fees | 6 | |||
100 | 1686182400 | $300 - $3,000 | 18% + fees | 6 | |||
6 | 1683676800 | $15,000 | 6.7% | Up to 60 months | |||
1 | 1670889600 | $1,000 - $10,000 | 19.9% - 46.9% | - | |||
7 | 1666051200 | $150 | 0% | - | |||
100 | 1643932800 | $500 - $15,000 | +18.9% APR | 6 - 60 | |||
100 | 1642723200 | up to $1,500 | - | - | |||
13 | 1639094400 | $1,000 - $15,000 | 29.9% - 46.9% APR | 12 - 60 | |||
30 | 1637280000 | $5,000 - $50,000 | 5.75% - 22.99% | Up to 84 | |||
100 | 1623369600 | Varies | 0% | 6 or 8 weeks | |||
2 | 1620777600 | Up to $35,000 | 9.99% - 46.96% | 6 - 60 | |||
17 | 1607558400 | $500 - $50,000 | 6.99% - 46.99% | 12 - 36 | |||
100 | 1600646400 | $1,000-$7,500 | 12.99% - 29.99% | 24 - 60 | |||
100 | 1598918400 | $1,000 - $15,000 | - | - | |||
100 | 1598832000 | $500 – $15,000 | + 25.99% | 9 - 60 | |||
100 | 1595980800 | $200 - $1,200 | 25% - 32% | - | |||
100 | 1551830400 | Up to $500,000 | 5.75% – 9.9% | negotiable | |||
100 | 1594684800 | $100 - $2,000 | 0% | - | |||
100 | 1593561600 | - | 0+ | 2 - 60 | |||
100 | 1589155200 | $2,500 | 15.65% AIR | 13 - 26 | |||
100 | 1582243200 | - | - | Up to 60 | |||
100 | 1581033600 | $5,000+ | - | Up to 60 | |||
100 | 1580947200 | - | - | - | |||
100 | 1580860800 | $500 - $5,000 | - | 12 - 24 | |||
100 | 1580860800 | $350 - $1,000 | - | 2 - 12 weeks | |||
9 | 1580860800 | $1,600 - $25,000 | 19.99% APR | 36 - 60 | |||
16 | 1580774400 | $1,000 - $25,000 | 7.5% - 31.5% APR | 36 - 60 | |||
100 | 1579478400 | $100 - $1,500 | - | - | |||
100 | 1579478400 | Up to $5,000 | 29.78% - 44.8% | 36 months | |||
100 | 1579219200 | $100 - $25,000 | +4.9% | - | |||
100 | 1579219200 | - | 15% - 19% | - | |||
100 | 1576713600 | - | Up to 35% | - | |||
18 | 1576713600 | $500 - $100,000 | 6.99% - 14.99% | 12 - 240 | |||
100 | 1575590400 | 1800- 2900 | 15.99% | 23 - 36 | |||
100 | 1562198400 | $500 - $15,000 | 15.99 - 39.99% | 6 - 60 | |||
100 | 1560124800 | Up to $15,000 | 29.99% - 46.96% | 9 - 60 | |||
17 | 1545955200 | Up to $20,000 | 18.99% - 24.99% | 36 - 84 | |||
19 | 1552262400 | $1,000 - $15,000 | 29.9% or 46.90% | 6 - 60 | |||
100 | 1551830400 | $100 - $1,000 | 546% APR | 14 days | |||
100 | 1569974400 | $500 - $50,000 | 15 - 30% | - | |||
100 | 1551830400 | $1,000 - $15,000 | 19% - 46.95% | 6 - 60 | |||
100 | 1551398400 | Up to $1,500 | 15% - 19% | 14 days | |||
100 | 1551398400 | $100 - $1,500 | 15% - 17% | 14 -31 days | |||
100 | 1551398400 | $500 - $1,000 | 28% - 32% | - | |||
100 | 1551398400 | - | - | 14 days | |||
18 | 1546128000 | Up to $5,000 | 19.9% - 45.9% APR | 6 - 36 | |||
100 | 1551139200 | $250 -$1,250 | 29% | 3 - 6 | |||
100 | 1551139200 | $5,000 - $35,000 | 9.9%+ | 6 - 60 | |||
15 | 1551139200 | Up to $15,000 | 19.99% APR | Open-end | |||
100 | 1550534400 | $300 - $25,000 | 7.95%+ | 36 - 60 | |||
100 | 1550534400 | $100 - $1,500 | - | 14 days | |||
100 | 1569974400 | Up to $1,500 | 15% - 17% | up to 62 days | |||
100 | 1550534400 | Up to $1,500 | Up to 59% APR | 14 days | |||
19 | 1550534400 | $2,500 + | - | - | |||
100 | 1550534400 | $500 - $1,000 | 28% - 32% | 3 -5 | |||
100 | 1550534400 | $300 - $1,000 | 38% APR | 3 - 4 | |||
100 | 1549411200 | $100 - $1,000 | 546% APR | 14 days | |||
100 | 1549411200 | $1,000 -$15,000 | 46.93% | 12 - 60 | |||
100 | 1567555200 | $300 - $3,000 | 18% + fees | 6 | |||
100 | 1549238400 | $500 - $1,000 | 28% - 32% | 4 - 5 | |||
100 | 1549238400 | $100 - $1,500 | 90% - 390% APR | 14 days | |||
100 | 1549238400 | $250 - $1,000 | 29% APR | 3 - 4 | |||
20 | 1548720000 | $500 - $1,000,000 | 7.9% | 12 | |||
100 | 1548720000 | $1,000 - $50,000 | 4.6% – 49.96% | 3 - 60 | |||
100 | 1548633600 | $300 - $7,500 | 29.9% - 39.9% | 6 - 60 | |||
100 | 1548633600 | $50 - $1,500 | - | 14 days | |||
100 | 1545955200 | Up to $20,000 | 19% - 49% | 36 - 48 | |||
16 | 1545264000 | $2,000 - $10,000 | 18.9% - 54.9% | 12 - 60 | |||
5 | 1545264000 | $500 - $10,000 | 12.99% – 39.99% | 9 – 36 | |||
100 | 1545264000 | $500 – $10,000 | Starting at 9.90% | 12 - 36 | |||
2 | 1543622400 | Up to $50,000 | 19.99% - 39.99% | 6 - 120 | |||
100 | 1545177600 | $2,000 – $10,000 | 34.9% - 43% | 12 - 60 | |||
10 | 1545264000 | $500 - $12,500 | 19.99%+ | 12 - 60 | |||
100 | 1545350400 | Up to $1000 | 30% | 3 - 5 | |||
100 | 1545350400 | Up to $5,000 | 60% | 6 - 60 | |||
100 | 1545350400 | Up to $3,000 | 22% - 35% | 3 - 4 | |||
100 | 1545350400 | Up to $7,000 | - | 6 – 60 | |||
100 | 1545350400 | $500 - $2,500 | 29% - 46.95% | 6 - 36 | |||
5 | 1545350400 | $500 - $1000+ | 28%-32% | 3 | |||
100 | 1545350400 | $500 – $750 | 28% – 34.4% | 3 | |||
100 | 1545350400 | $500 – $750 | 23% - 34.4% | 3 – 12 | |||
100 | 1545350400 | $300 - $1500 | 27% - 35% | 3 - 4 | |||
4 | 1545264000 | $500 - $100,000 | Starting at 29.99% | 9 - 84 | |||
3 | 1545264000 | Up to $3,500 | 47.72% | - | |||
2 | 1568937600 | $1,500 – $10,000 | Varies by province | Varies | |||
10 | 1545177600 | $1,000 - $35,000 | 5.99% - 29.19% | 36 - 60 | |||
18 | 1545177600 | $100 - $20,000 | Up to 46.8% | Up to 60 |
Provider | Loan Amount | Rate | Term (Months) | Rating | |||
---|---|---|---|---|---|---|---|
0 | 0 | Up to $50,000 | Prime – 46.96% | 3 - 120 | |||
3 | 1697414400 | Up to $800,000 | 9% - 49.99% | 3, 6, 9, or 12 | |||
2 | 1669852800 | $5,000 - $300,000 | - | 3 - 24 months | |||
100 | 1648512000 | $10,000 - $250,000 | Varies | 6-12 | |||
100 | 1620345600 | - | - | 12 - 60 | |||
100 | 1611878400 | $5,000 - $30,000,000 | - | Up to 18 | |||
17 | 1607558400 | $500 - $50,000 | 6.99% - 46.99% | 6 - 36 | |||
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% | - | |||
100 | 1581292800 | - | - | - | |||
100 | 1581033600 | - | - | - | |||
100 | 1581033600 | - | - | - | |||
100 | 1581033600 | - | - | - | |||
100 | 1580947200 | - | - | - | |||
100 | 1580947200 | $10,000 - $1,000,000 | - | - | |||
100 | 1580860800 | - | - | - | |||
100 | 1580860800 | - | - | - | |||
100 | 1580860800 | - | - | - | |||
100 | 1580860800 | - | - | - | |||
100 | 1580860800 | - | - | - | |||
100 | 1580860800 | $5,000 - $1,000,000 | - | - | |||
100 | 1580860800 | - | - | - | |||
100 | 1580860800 | - | - | - | |||
100 | 1580860800 | up to $250,000 | - | - | |||
100 | 1580860800 | - | - | - | |||
100 | 1580688000 | Up to $10,000 | - | - | |||
100 | 1580256000 | $5,000 - $500,000 | - | 6 - 18 months | |||
100 | 1579478400 | - | - | - | |||
100 | 1579478400 | $10,000- $30,000,000 | Min 4.95% | - | |||
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 | |||
100 | 1575849600 | Up to $250,000 | - | - | |||
100 | 1575590400 | - | - | - | |||
100 | 1575590400 | - | - | - | |||
1 | 1545955200 | $5,000 - $150,000 | Fee-Based: Starting at 9% | 12 - 60 | |||
100 | 1552262400 | $500,000 - $10,000,000 | - | - | |||
100 | 1552262400 | - | Competitive | - | |||
100 | 1552262400 | - | - | - | |||
100 | 1552262400 | Up to $250,000 | - | Up to 10 years | |||
100 | 1552262400 | - | - | - | |||
100 | 1552262400 | Up to $1,000,000 | - | - | |||
100 | 1551830400 | Up to $100,000 | - | - | |||
100 | 1551830400 | $10,000+ | - | Up to 15 years | |||
100 | 1551830400 | Up to $1,000,000 | - | Up to 15 years | |||
100 | 1551830400 | Up to $500,000 | - | Up to 10 years | |||
100 | 1551830400 | $5,000 - $10,000 | - | Up to 7 years | |||
100 | 1551398400 | $3,500+ | - | - | |||
100 | 1551398400 | $5,000+ | 4.9% - 24.99% | 18 - 48 | |||
100 | 1551398400 | $10,000 - $1,000,000 | 4% - 14% | 12 - 84 | |||
100 | 1551139200 | Up to $75,000 | - | Up to 18 | |||
100 | 1550534400 | $500-$50,000 | 0.5% weekly | 12 week cycles | |||
100 | 1550534400 | $1,000 - $1,000,000 | 6% - 20% | - | |||
100 | 1550534400 | Up to $5,000,000 | 4.5% | 24 - 72 | |||
100 | 1550534400 | $5,000 - $200,000 | - | - | |||
100 | 1549411200 | $50,000 - $12,000,000 | - | 24 - 96 | |||
100 | 1549411200 | $5,000 - $1,000,000+ | - | 1 - 60 | |||
100 | 1549238400 | $5,000 - $1,000,000 | - | 3 - 24 | |||
100 | 1548720000 | $5,000 - $5,000,000 | - | 4 - 18 | |||
100 | 1548720000 | Up to $100,000 | 6.05% + | 60 | |||
100 | 1548720000 | $10,000+ | 18% - 22% | - | |||
100 | 1548720000 | $10,000 - $300,000 | 4.70% - 5.45% | - | |||
100 | 1548633600 | Up to $5,000,000 | 5% - 10% | 12 - 60 | |||
10 | 1545177600 | $1,000 - $35,000 | 5.6% – 25.5% | 36 – 60 | |||
100 | 1545264000 | $5,000 - $250,000 | - | 3-18 | |||
100 | 1545264000 | $5,000 - $150,000 | - | 3 - 24 | |||
6 | 1545350400 | $5,000 – $100,000 | 15% + | 12 – 18 | |||
100 | 1545264000 | $5,000 – $100,000 | Starting at 6.87% | 3 – 18 | |||
5 | 1545177600 | $5,000-$250,000 | 8% - 29% APR | 6 - 18 | |||
4 | 1545177600 | $5,000 – $500,000 | Starting at 5.9% | 3 – 60 | |||
5 | 1545264000 | $500 - $10,000 | 12.99% – 39.99% | 9 – 36 | |||
100 | 1561507200 | Up to $300,000 | - | - |
Provider | Loan Amount | Rate | Term (Months) | Rating | |||
---|---|---|---|---|---|---|---|
0 | 0 | Up to $50,000 | Prime – 46.96% | 3 - 120 | |||
2 | 1679529600 | Varies | 8.49% + | 24 - 96 months | |||
100 | 1643846400 | up to $10,000 | 19.99% | 12 - 36 | |||
3 | 1632960000 | Up to $50,000 | 15.99% + | 12 -72 | |||
8 | 1624233600 | Up to $50,000 | 29.99% – 46.96% | 12 - 96 | |||
100 | 1610409600 | - | - | - | |||
17 | 1607558400 | $500 - $50,000 | - | 24 - 60 | |||
7 | 1606435200 | $500 - $10,000 | 29.95%+ | up to 48 | |||
100 | 1600646400 | $1,000-$7,500 | 12.99% - 29.99% | 12 - 84 | |||
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 | |||
100 | 1552262400 | Up to $250,000 | - | 12 - 60 | |||
100 | 1552262400 | Up to $1,000,000 | - | up to 96 | |||
100 | 1551830400 | Up to $100,000 | - | 6 - 96 | |||
100 | 1551830400 | $10,000+ | - | 12 - 96 | |||
100 | 1551830400 | Up to $1,000,000 | - | up to 96 | |||
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 | |||
100 | 1575849600 | - | - | - | |||
100 | 1575590400 | - | - | - | |||
100 | 1575504000 | - | - | - | |||
6 | 1569974400 | $7500 - $59,995 | 3.95% + | 12 - 96 | |||
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 | |||
100 | 1551830400 | Up to $30,000 | - | - | |||
100 | 1551830400 | Up to $500,000 | 5.75% – 9.9% | negotiable | |||
100 | 1550534400 | - | - | - | |||
100 | 1548720000 | - | - | - | |||
100 | 1548633600 | - | 4.2%+ | - | |||
100 | 1545955200 | Up to $20,000 | 19% - 49% | 36 - 48 | |||
5 | 1545264000 | $500 - $10,000 | 12.99% – 39.99% | 9 – 36 | |||
100 | 1545177600 | Up to $50,000 | - | - | |||
100 | 1545177600 | $5,000 – $40,000 | - | 12 – 72 | |||
100 | 1545177600 | - | - | Maximum 84 |
Provider | Loan Amount | Rate | Term (Months) | Rating | |||
---|---|---|---|---|---|---|---|
0 | 0 | Up to $50,000 | Prime – 46.96% | 3 - 120 | |||
100 | 1578873600 | $1,000 - $35,000 | - | 24 - 60 | |||
100 | 1545955200 | Up to $20,000 | 19% - 49% | 36 - 48 | |||
100 | 1545264000 | Up to $25,000 | - | 12 - 60 |
Provider | Loan Amount | Rate | Term (Months) | Rating | |||
---|---|---|---|---|---|---|---|
0 | 0 | N/A | N/A | N/A | |||
7 | 1708473600 | Varies | Varies | 1 - 10 years | |||
5 | 1700524800 | - | - | - | |||
6 | 1696377600 | - | 5.69% + | - | |||
100 | 1695945600 | - | - | - | |||
100 | 1695772800 | - | - | - | |||
4 | 1690934400 | Varies | 5.54%+ | Varies | |||
2 | 1688601600 | Min $100,000 | 5.34%+ | 2 - 10 years | |||
3 | 1679616000 | $100,000 - $2 million | Fixed, variable, or adjustable rates | 1 - 5 years | |||
4 | 1541030400 | - | Varies | 6 months - 5 years | |||
100 | 1627344000 | - | 1.94% - 2.45% | 12 - 60 | |||
2 | 1620777600 | Up to $35,000 | - | - | |||
100 | 1551830400 | Up to $500,000 | 5.75% – 9.9% | negotiable | |||
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 | |||
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 | |||
100 | 1577059200 | $25,000 - $800,000 | 4.59% - 5.64% | 6 - 60 | |||
100 | 1577059200 | - | - | - | |||
100 | 1577059200 | - | -- | - | |||
100 | 1577059200 | - | 2.84% - 7.30% | - | |||
100 | 1574985600 | $100,000 - $750,000 | - | 12 - 120 | |||
100 | 1574899200 | min 25,000 | 3.89.% - 4.84% | 12 - 60 | |||
100 | 1574899200 | - | 2.23% - 4.45% | - | |||
100 | 1560124800 | - | 2.89% - 3.79% | - | |||
100 | 1548806400 | $10,000 - $1,500,000 | Varies | 12 - 24 | |||
100 | 1548720000 | - | 2.41% - 3.84% | - | |||
100 | 1548720000 | - | - | - | |||
1 | 1517097600 | $10,000+ | Based on equity | - |
Provider | Services | Rating | |||
---|---|---|---|---|---|
0 | 0 | Debt Consolidation Program, Debt Settlement Program, Consumer Proposal, Bankruptcy Consultation | |||
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 |
While bad credit is fixable, it can make it tougher for you to get approved for large credit products, affordable interest rates, and appealing repayment terms. This is especially true for any form of vehicle financing, where a lot of money is being exchanged between you and the lender or dealership you’re borrowing from.
Since bad credit may be the result of missing too many debt payments in the past, many auto financing sources will consider you too risky to approve. Don’t worry, there are several ways to get approved for a bad credit car loan in Scarborough.
Like other cities in Canada, Scarborough has plenty of residents with bad credit, any of whom could have trouble getting approved for auto financing. However, many lenders and dealerships offer bad credit car loans to drivers with lower incomes, debt problems or, in this case, unhealthy credit histories.
The bad credit car loan process works the same way as any other type of vehicle loan. You can apply with a lender, where a lump sum of liquid cash will be deposited into your bank account and must be repaid through installments (after you’ve bought your car). Many dealerships in Scarborough also offer in-house financing, where you drive off the lot in your chosen vehicle, then repay them directly over 1 – 5 years.
One of the biggest differences between a bad credit car loan and normal car loan is that the lenders and auto dealers who supply them have easier approval requirements than prime lenders, like financial institutions or top-tier dealerships.
So, borrowers who would have gotten approved for unappealing conditions or denied altogether because of their bad credit can get approved for the loan they need, even if their income isn’t amazing or they’ve had prior debt problems.
One of the biggest drawbacks to a bad credit car loan is that it could have higher costs than a prime car loan. Before you apply, be sure to learn about all these associated costs, so you don’t get caught off guard by them after your repayment plan starts.
Here are some of the cost-related elements that bad credit can affect:
Bad credit lenders/dealers sometimes offer smaller loans. This can be due to their clients not being trustworthy with large amounts of credit or because they’re a private company that can’t offer more money. Either way, a bad credit car loan may not be big enough to cover the full price of your car.
Bad credit car loans often come with shorter repayment terms. However, some lending sources offer longer terms because they can charge more interest. For instance, an 84-month loan term with smaller payments is more profitable than a 48-month term with larger payments.
Some traditional lenders/dealers are open to negotiation when it comes to the size and frequency of your loan payments. Bad credit lenders, on the other hand, may be more restrictive. Since bad credit car loans often come with shorter terms, payments are generally higher.
While a down payment isn’t always mandatory with a regular car loan, bad credit lenders and dealerships may request one prior to approving you. Since your poor credit score may label you a risky borrower, that down payment may also have to be larger than you were expecting.
Every lending source offers different car loan rates. However, bad credit lenders/dealers typically charge higher rates, again due to the level of risk involved. So, you could end up paying far more for a bad credit car loan than a regular car loan, even if you had the same term length.
Almost every lender/dealer charges fees for any physical or administrative services rendered during your loan term. Common examples include loan origination, document processing and pre-delivery vehicle inspection. Sadly, bad credit loan fees can be higher and more abundant than with a normal car loan.
When it comes to bad credit car loans in Canada, drivers generally have three options. Since each option has its own pros and cons, be sure to research your lender or auto dealer carefully prior to giving them any information.
The primary choice for many borrowers is their current financial institution. While some credit unions and banks don’t offer car loans, you can apply for a personal loan, then use it to finance your down payment or, if you’re lucky, your entire car.
Benefits
Limitations
If you’re not paying for your car with cash or a credit card, most auto dealers can connect you with the third-party lender(s) they do business with. Many also offer in-house vehicle financing, where you make payments directly to them.
Benefits
Limitations
If you have trouble qualifying with a financial institution or don’t want to do dealership financing, there are many alternative lending companies (online and physical) that can provide you with a bad credit car loan in Scarborough.
Benefits
Limitations
Qualifying for a bad credit car loan can be easier than regular vehicle financing. That said, similar requirements may be involved during the application process. Here are some steps to take if you want to qualify for a bad credit car loan in Scarborough:
Approval requirements may vary depending on where you apply for your bad credit car loan in Scarborough. There are several ways to increase your chances of getting approved for good loan conditions, including but not limited to:
To find out if you’ll qualify for a bad credit car loan, visit your lender/dealer or go online to get pre-approved and receive a free loan quote. This will save you the trouble of applying, only to possibly get denied.
If you pay at least 10% – 20% of your car’s total sales price upfront, it can be much easier to qualify. Not to mention, the larger your down payment is, the shorter your loan debt will be.
In some cases, your car loan will be secured against the vehicle itself. If you default, your lender/dealer may repossess it. While they might accept other assets, that isn’t recommended due to the potential for loss.
Many dealerships accept trade-ins for pre-owned vehicles with resale value. Although they likely won’t offer you a lot of money, your approval chances will be higher and the car you buy will have a reduced price.
If your income and credit score are insufficient, a stronger borrower may be able to co-sign your loan. However, this can also be risky, as the cosigner will become responsible for your payments if you can’t afford them.
If you think you might not get approved for a bad credit car loan in Scarborough, it might be safer to look into lower priced or second-hand vehicles. The less risk involved for your lender/dealer, the better the outcome.
Frequently Asked Questions
What type of car payments should I choose?
How to choose the right lender?
What affects the cost of a bad credit car loan?
Essentially, the best way to qualify for a favourable car loan and interest rate is to apply with a strong income, good credit and a clean debt payment history. Nonetheless, a larger loan with a longer-term and smaller payments can result in more interest and fees over time, especially if you don’t make a big down payment.How will my credit score affect my car loan?
Loans Canada can connect you with the right lender in your area who can help you choose the best type of car loan to meet your unique financial needs.
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.
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