Bad Credit Car Loans

Car Loans for Bad Credit

Explore your borrowing options for a car loan.

Explore Your Options with
Bad Credit Car Loans

Discover your options and learn more about funding.

Choose A Loan Right For You

Bad Credit Loans

Poor credit score

Installment Loans

Fair credit score

Per month

Personal Loans

Good credit score

Emergency Loans

When you need fast cash for bills and unexpected expenses.

Average Loans

A popular loan option that many Canadians choose.

Best Rates

For those with 760+ credit score and excellent rating.

Online loans for a new car can provide faster more options when you have bad credit.

How to Get Bad Credit Car Loans

Having a poor credit rating can make it challenging when looking to borrow, but you can still find bad credit car loans that you can get approved for with online lenders. Often the banks have stricter criteria, which can make approval challenging with bad credit. 

Many consumers presume bad credit car loans don’t exist and that your only hope for such a loan is having a good to excellent credit score. But having bad credit only reduces your car loan options in most cases. There are still lenders that will look at your application, even with bad credit, making it possible to get approved.  

How Can I Get a Car Loan With Bad Credit?

After you have decided on the vehicle you want, the next step is to check financing options. 

Financing is another way of describing the funding for a car loan. When buying a car, most people require financing and do not have the cash to pay for a vehicle in their savings. When you have bad credit a car loan can be more challenging to get approved for, but usually there are options available. 

Start by determining what your budget would be for a vehicle and what you can afford to pay each month. Consider all other expenses from rent/mortgage and food to bills and other expenses before deciding what fits with your budget. 

After the above is done, you would want to find out what vehicles and features interest you. This allows you to make a list of possibilities. Next, you should look at what will work with your budget, and have an even shorter list of possibilities or options that you can afford. Time for some test drives to see which meet your needs, or fail to deliver. Finally, you would have a list of viable options for a car loan where even with bad credit you may find a potential lender to help.

What Credit Score is Required for Car Loan?

Before explaining what’s required, we should briefly share what a credit score is. If already familiar with what it is you can always skip ahead. 

A credit score is a number in Canada between 300 and 900 that is provided by credit bureaus like TransUnion and Equifax that gives creditors an idea of your creditworthiness. For further details about credit scores you can read more here. The average credit score in Canada is about 660, and if yours is closer to 600, you may find getting a car loan to be challenging.

Getting a car loan and the interest rates you might qualify for is typically connected to your credit score. Unless your credit score is really low, you are usually able to get pre-approved. But those with lower scores are more likely to be offered bad credit car loans, which have higher interest rates and more likely to have limits on the amount that you can borrow. It’s still possible to finance a vehicle with bad credit, it just might cost more to borrow.

With bad credit, car loans are less likely to be available through banks, but there are alternative lender options that can help with getting the funding or financing you may need. Some say that you don’t choose your loan options, they choose you. This is related to the fact that your credit score is the most influential means of how a lender will view your credit profile and the rates or terms they might offer. 

You can get financing for a car loan through a dealership, or your bank, along with online loans being more and more popular. Just keep in mind that bad credit car loans in Canada with guaranteed approval would be something said, but doesn’t really happen. Any lender saying they offer guaranteed approval, from car loans for bad credit to any other type of loan, is a bit misleading and isn’t something that can be guaranteed.

Finding car loans for people with bad credit isn’t impossible, it’s just a matter of applying to see what your options are. If you have ever wondered whether you can get approved for car loans with bad credit, much of the time the answer is yes. Even when you have doubts it is worth applying to see whether you might be eligible. While you should not expect instant approval, it is worth your time to try if looking. When looking for instant solutions you may find that some lenders offer e-transfers for loans which can provide you the funds in your account quicker. 

Some looking for bad credit loans for a car in Canada seek guaranteed approval or similar, which doesn’t actually exist and a gray area. Lenders (and dealers) are aware that some people would be searching for loans with guaranteed approval so they promote that they offer it. 

Having bad credit doesn’t mean you won’t be able to borrow, but it can affect the amount you might be eligible for, or the terms of a car loan such as how long you might have for repayment. Another option you might find if looking for fast cash are called title loans, but you should make sure you understand these completely before thinking of signing.

Bad Credit Car Loans Alberta

Finding bad credit car loans in Edmonton, Calgary, Grande Prairie, Lethbridge, Fort McMurray, Red Deer and other cities in Alberta is much easier when you are looking online. The banks tend to make it impossible to borrow for car loans with bad credit. Finding car loans in Alberta with bad credit is not as difficult as one might assume when you try online.

Bad Credit Car Loans BC

BC residents of Vancouver, Surrey, Kelowna, Chilliwack, Prince George and other nearby cities looking for car loans with bad credit will also find your best options when looking online. When looking for bad credit car loans in BC you will find there are lenders that are often willing to work with you and your choices online might be the answer.

Bad Credit Car Loans Ontario

For those in Toronto, Ottawa, Mississauga, Windsor or Hamilton seeking bad credit car loans will find many options for those in Ontario. The options are not limited to just these cities and you can find numerous options for Ontario bad credit car loans that might be able to help get you into your next vehicle. 

Bad Credit Car Loans Manitoba

Those looking for bad credit car loans in Winnipeg and the surrounding area will also find that financing and pre-approval from online lenders can make it easier to get approved in comparison to relying only on banks for car loans.

Bad Credit Car Loans Saskatchewan

Whether you live in Regina or Saskatoon or somewhere else in Saskatchewan it can be challenging to find car loans when you have bad credit. Finding car loans online can often open up the possibilities when you are looking to borrow.

Bad Credit Car Loans Canada

Your options are almost limitless when looking online and the above examples mentioned are only the beginning. Whether you’re after bad credit car loans in Winnipeg or just about any other city throughout Canada you can often get the answer you’re after at GoodCheddar.


reviews - fairstone financial

Some of the lenders we may refer your loan request to. Service provided at no additional cost to you.

Take your first step to better finances

Bad Credit Loans

Find our how to take advantage of the perferred rates and terms that you can get when you qualify for personal loans.

Learn more

Installment Loans

Not everyone qualifies for personal loans, and installment loans can provide with less requirements to be eligible.

Learn more

Credit Score

Learn about credit scores, credit mix, what affects your score, and what you can do to improve it in the future.

Learn more


Start improving your personal finances and reducing your debt with insights on where and how to improve your situation.

Learn more

GoodCheddar provides articles, guides and insights that can help with improving your finances. See for yourself, we have the answers.

Other Borrowing Options

I need a loan for

Emergency Expenses

I need a loan for


I need a loan for


I need a loan for


Financial Learning Hub

Read more at GoodCheddar for advice on car loans, borrowing fixing debt, budgeting and improving your credit score to help you get financially fit.


Frequently Asked Questions

You have questions, we have answers!

Even those with bad credit can get matched with a lender and are often approved for an installment loan.

The amount you can borrow will depend on things like your income, repayment terms you select, credit score and similar factors. 

If you are approved for a loan most lenders may provide your funds in about 1-2 business days, with some providing same day funding.

Reputable Partners 

Get a Car Loan in Canada

When you need a car loan but bad credit makes it challenging to get approved, some of the lenders that work with GoodCheddar can help. Start by self-selecting above from the choices of bad credit loans, installment loans and personal loans. These options are related to your credit score.