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		Provider	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

		Provider	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

		Provider	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	-

		Provider	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

		Provider	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+

		Provider	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

Buying a car with bad credit is not easy. If you need a loan to finance a vehicle purchase, but your credit profile makes lenders wince, you could face an uphill battle getting your application approved.

A bad credit score can arise from various circumstances, ranging from poor spending habits to unforeseen expenses that deplete one’s bank account. However, a car is an item that is a necessity for most Canadians, including those with low credit scores. Luckily, bad credit car loans are available to those who are unable to access credit from traditional lenders.

Bad Credit Car Loans

A bad credit car loan is a type of car loan offered to people in Ottawa with low credit scores. It functions in the same way as a regular car loan but is intended for people who have a credit score below 660. If your credit score is below 660, it’s unlikely that you’ll be approved for a traditional car loan, which is generally offered by primary lenders like the Big Five banks. Bad credit car loans are issued by non-traditional lenders and vary in their terms, rates, and fees.

Cost of a Bad Credit Car Loan in Ottawa

Bad credit car loans have less favourable terms and conditions compared with traditional car loans. Below are some of the costs associated with a bad credit car loan:

• Down payment – Lenders may require a large down payment before they extend credit, which can be detrimental for individuals who don’t have enough saved.
• Interest – The interest rates charged on bad credit car loans in Ottawa are considerably higher than those on regular car loans due to the increased risk of default.
• Term length – Some lenders only provide short-term car loans to individuals with bad credit, as issuing long-term loans increases the risk of missed payments. Since the loan must be repaid in full over a short time frame, the result is larger payments for the borrower. Conversely, some lenders may offer long-term loans to incentivize borrowers to do business with them. While long-term loans come with lower monthly payments, the amount of interest that accrues over the loan term can be relatively high.

Where Can You Get a Bad Credit Car Loan?

If your low credit score impedes your ability to obtain a car loan from your bank, there are alternative options to explore.

Credit Union

Credit unions in Ottawa offer many of the same services banks do, except that their members own them, and they operate as nonprofit organizations. Their focus is on providing quality products and services, rather than profit, so you stand a greater chance of getting a loan when applying with them. They typically charge lower fees, assign low-interest rates, and are more willing to grant you small loans that banks would be unwilling to finance.

There are some downsides to financing your car loan with a credit union, however. To be approved for a loan, you must open an account with them and meet specific eligibility requirements. The eligibility criteria vary and can be based on who your employer is, where you live, or your membership in a particular association, such as a trade union.

Dealership

Acquiring a bad credit car loan from a dealership can be a viable choice. Some dealerships have an internal financing department that works with other financial institutions to finance customers’ car loans. They may also offer in-house financing and may personally extend a loan to you. Because they have a vested interest in you purchasing the car, they are more inclined to negotiate with you on the loan offer.

Financing your car loan through a dealership is not without its disadvantages. If the dealership outsources its financing to another lender, they may add a markup on the rate that’s assigned to you (this is called a dealer reserve). Also, if you opt for in-house financing, the dealership may not report your loan payments to credit bureaus (some dealerships don’t conduct credit checks) – not good if you’re keen on using the loan payments to rebuild your credit score.

Alternative Lenders

Alternative lenders in Ottawa operate outside the market dominated by traditional banks. They are predominantly found on online platforms that bring together lenders and borrowers. An alternative lender can be a great source of financing for your car loan. They accept low credit scores and consider other factors, such as your income, when evaluating your application. The application process itself is fast and easy, and you can usually receive the funds within a day.

Despite the relative ease of applying for and securing financing from an alternative lender, there are some drawbacks. If you’re deemed to be a high-risk borrower by their standards, the lender will charge you an extremely high-interest rate. Also, alternative lenders can add an abundance of other charges: origination fees, prepayment fees, disbursement fees, etc.

Qualifying For a Bad Credit Loan in Ottawa

Here are the steps to take when applying for a bad credit car loan:

1. Know your budget – Figure out how much you can afford to spend each month serving the loan. Consider the cost savings associated with trading in your current vehicle and be sure to browse the used car market – you may discover a great bargain. Ensure you factor in a down payment into your budget to see how it can impact your loan payment size.
2. Choose a financing source – Examine the pros and cons of working with the different types of lenders and do some extensive comparison shopping online. Select the option that’s right for your financial situation.
3. Get approved online – Apply online by filling in your personal details and relevant financial information. You’ll need to submit the following:

• Proof of employment
• Bank statements
• Financial statements showing your assets and liabilities
• Proof of identity – passport of driver’s license
• Down payment (don’t have one – check out no down payment car loans)

Learn more about what you need to get approved for a car loan.

Improve Your Chances of Being Approved for a Bad Credit Car Loan

While there are many sources of alternative financing available for those with poor credit in Ottawa, it’s still worthwhile to improve your chances of acquiring the best car loan you can get.

• Increase your down payment – A down payment will lower the loan’s cost, so your monthly payments will decrease. Putting down a sizable sum of money also indicates to the lender that you’re committed to purchasing the vehicle and making regular payments – you may be able to increase your bargaining power and negotiate a lower interest rate.
• Trade-in your car – Trading in your current vehicle will cover part of the cost of your new vehicle. As with a down payment, your payments will be lower, and you may be able to lock in a better interest rate.
• Opt for a lower-priced car/used car – Consider purchasing a used car or a lower-priced car. If you have an exceptionally low credit score and unreliable income stream, you may only qualify for the most expensive loans, so it may be more sensible to go for something cheaper.
• Get pre-approved quotes – Obtaining pre-approved quotes is a great way to discover where you can get the best loan. Car loan quotes provide you with an estimated interest rate and the maximum amount you can get approved for, which will give you a clear idea of the type of vehicle you can afford

Below are some questions to ponder before applying for a bad credit card loan:

• What kind of car do you need? – Be honest with yourself and ask why you intend to purchase a vehicle. Do you need a car or do you want a car? If you’re struggling with bad credit in Ottawa, focus only on the practical aspects of owning a car, such as driving to work and running errands. Doing this will remind you to view a car as a useful tool rather than a luxury item – and in doing so, help you make a wise purchase that’s easy on your wallet.
• What monthly payments can you afford? – Track your spending and figure out how much of your budget you can allocate to car loan payments. Ensure you can easily service the loan payments, even if unforeseen emergencies arise.
• What affects your loan costs? – There are essentially three things that affect the cost of a car loan: the interest rate, the loan term, and fees. High-interest rates will take more money out of your pocket than low-interest rates, especially if the loan term is long. Lenders charge origination fees as compensation for processing your loan and can range from 0.5% – 8% of the loan amount. You may also incur prepayment fees if you decide to make additional payments on the loan.
• Who are you applying with? – Ensure you do your due diligence and investigate the reputation of your lender. Read online reviews, inquire from past customers on forums, and seek the advice of family and friends who’ve done business with the lender.
• What is your credit score – It’s crucial to know your credit score, as it’s an important factor determining the type of loan you can expect to qualify for. If you know your credit score, you can set realistic expectations. You can find your credit score by ordering a free copy of your credit report through a credit bureau like TransUnion or Equifax.

Looking For a Bad Credit Car Loan in Ottawa?

A low credit score may hamper your ability to acquire a car loan, but securing financing is not impossible. Spend some time understanding your credit score and creating a realistic budget – you may discover that there’s adequate room for a car payment. Be sure to also dedicate a lot of time to comparison shopping online, as the number of options is endless. With some meticulous planning and a reputable lender that understands and can accommodate your unique financial situation, you can start driving your new car in no time.