Loans Canada Launches Free Credit Score Portal And Is Recognized As One Of Canada’s Top Growing Companies
Loans Canada is pleased to announce it placed No. 131 on the 2022 Report on Business ranking of Canada’s Top Growing Companies.
Before you start shopping for a new car and a new loan to pay for it, you need to check your credit score. You’ve heard it before and you know it’s the right thing to do so why do most people still forget to check?
It’s one of the biggest mistakes people who are looking to buy a car make; the average person typically looks for the car they want then after they have their heart set on a certain model, decide to check their credit score.
If you are currently looking to purchase a new vehicle, stop right now and go check your credit score. This way you’ll have a better idea of what kind of car you can realistically afford and won’t be disappointed when you can’t get your dream car right away.
In Canada, there are numerous ways you can check your credit scores and credit report. You can check your credit scores and report with:
Cost | Credit Score | Credit Report | ||
![]() | Free | Yes | Yes | Visit Site |
![]() | Free | Yes | No | Visit Site |
![]() | Free | Yes | Yes | Visit Site |
![]() | Free | Yes | Yes | - |
Car loans are one of the most common kinds of debt, considering their importance and the relative ease of accessing this type of loan compared to other more complicated types of financing, for example, a mortgage. The good news is that car loans are actually fairly straightforward.
A car loan is a secured form of debt where the collateral for the loan is the car itself. With a car loan, you are the legal owner of the vehicle, though are still in debt to the lender for the amount of money you borrowed.
The lender provides funds for the vehicle upfront in the form of a loan. Depending on the situation, you need to provide a percentage of the total price of the vehicle as a downpayment. The lender funds the remainder of the cost of the vehicle. You and the lender agree on terms, including the duration of the loan, the payment frequency and amount, as well as the interest rate. This same contract will detail the penalties related to default, early payment, or other contractual violations. You make routine payments to the lender; and, once the term is complete, you own the car ‘free and clear’, meaning there is no lien against it.
Buying | Leasing | |
Money Matters | Costs more upfront and monthly | Less upfront investment so you can get a pricier car |
Dealing With Bills | You can pay off a car loan to get rid of your monthly bill. | Leasing results in continual payments over time. |
Commitment | Gives you the ability to trade or sell your vehicle. | Can be hard to get out of a leasing contract. |
Time Investment | Unless you sell or trade, you will have the vehicle for a long time. | You can upgrade your vehicle at the end of the lease term. |
Other Factors | The value of your asset begins to depreciate. | If you go over the mileage on your lease, it will incur fees. |
There are several places where you can access a car loan. Depending on your financial situation and credit score, you will need to approach a different lender. This is just one reason why checking your credit is so important. Potential lenders include:
Amount | Interest | Term(Months) | ||
![]() | $500 - $50,000 | Up to 46.96% | 12 - 84 | Learn More |
![]() | $500 - $35,000 | $29.99% – 46.96% | 9 - 60 | Learn more |
![]() | $500 – $10,000 | 12.99% – 39.99% | 9 - 36 | Learn more |
![]() | $5,000 - $40,000 | Varies | 12 - 72 | Learn more |
![]() | $7500 - $59,995 | 3.95% + | 12 -96 | Learn more |
![]() | $5,000 - $45,000 | 4.90 % - 29.95% | 36 - 72 | Learn more |
![]() | Varies | 11.9% + | 12 - 84 | Learn more |
![]() | Up to $50,000 | Varies | 12 - 84 | Learn more |
![]() | Up to $50,000 | 8.99% + | 12 - 72 | Learn more |
When getting a car loan, there are a few really important things to keep your eye on. These include:
Your credit score is a reflection of your borrowing history and gives lenders an idea of the amount of risk you pose as a borrower. It directly impacts the rates for which you are eligible and whether you actually qualify for a loan. You should check your credit score prior to applying for a loan in order to get a better idea of where you stand. While you can get a car loan with most credit scores (even poor ones), it drastically limits the lenders with whom you can work. Those with good credit or better can get the best possible terms on a loan.
Another important factor to consider when applying for a car loan is how much money you have to put down. The more you have to put down, the better your chances of getting a car loan with poor credit. Even with great credit, a higher down payment can result in substantially better loan terms.
Find out if you can get a no down payment car loan.
Use a loan comparison platform to get an idea of the rate of interest for which you qualify. Naturally, the lower the interest rate, the less money you will pay for the vehicle itself.
Check out what the average car loan interest rate is in Canada.
This factor refers to the amount of debt you currently have relative to the amount of money you bring in. A low debt-to-income ratio shows that you will more easily be able to make regular payments. Conversely, a higher debt to income ratio showcases that it will be more difficult for you to make said payments.
Essentially, the shorter the term, the higher the payments. However, it means you pay off your loan faster. On the other hand, a longer-term means you have the loan in your name for more time, though you pay less each month.
Find out what is the average car loan payment in Canada.
Finally, consider whether the cost of the vehicle fits into your budget. Vehicles cost more than regular loan payments. Real cost includes insurance, registration, gas, and repairs. Be sure that you are prepared to make those payments so you don’t risk default.
To apply for a car loan, there are a few things you need to prepare. When you have all of your documentation and information together, the process of actually getting the loan is much smoother.
In order to get the best possible car loan, you’ll need to do some research. The good news is that there are many good resources available to help you in your pursuit of amenable loan terms. It’s easy to get started.
Accessing a car loan is a fairly straightforward process, so long as you are prepared. Do your research, keep an eye on your credit score, and take steps to improve your financial standing, you can access competitive loan terms. By checking your credit score first, you will be armed with the information needed to find the right car loan.
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Loans Canada is pleased to announce it placed No. 131 on the 2022 Report on Business ranking of Canada’s Top Growing Companies.
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