Getting a car loan, even with bad credit.

We work with people in all situations, including bad credit. We want to help you understand how this situation happened, and how we can help you improve and build your credit score.

What is a bad credit car loan?

Even if a potential consumer happens to have bad credit, it is still possible for them to secure a loan for a new or used car through various lenders, creditors, banks, and other traditional financial institutions.

With a bad credit car loan, a consumer with a low credit score is able to finance a car of their choice over a certain payment period, with a fixed monthly interest rate that they can negotiate with their lender. While not all lenders will grant a car loan to someone with bad credit, there are many that will. If you have bad credit, don't give up at the first sign of rejection. Ontario Auto Solutions works with many lenders who specialize in bad credit car loans. We have a large inventory of vehicles that are suitable for your situation.

How to Get Approved For a Car Loan in Canada if You Have Bad Credit?

If you're in need of a vehicle to get you to from point-A to point-B, but your credit is less than favorable, don't worry, Ontario Auto Solutions works with lenders that specialize in offering auto loans to consumers with bad credit. With that being said, there are some necessary steps to help you prepare beforehand.

  • Saving Up - this is an important practice not just to secure a car loan, but for your finances in general. Vehicles are a big expense. You must consider the other costs associated with owning a vehicle, including repairs, maintenance, fuel, and insurance.
  • Preparing your Financial and Personal Information - not only should you prepare your bank account for the debt to come, but you should have all of your financial information updated and ready for your lender's inspection. Doing this will help assure your lender of your financial responsibility and make the application process more efficient.
  • Researching Various Lenders - at Ontario Auto Solutions, we do the leg work for you in securing the very best loan for your financial situation. We will work with the lenders to secure you the best possible interest rate.
  • Filling out an Application - Once you've done your due diligence, you can fill out our pre-approval online form. One of our financial specialists will contact you to confirm information and ask you questions to complete the approval process.
  • Following Through - after your application has been submitted and approved, and you choose your vehicle from us, the most important thing you can do to improve your credit is to keep up with the monthly payments. This should not be a problem considering you've done your homework and are now in a vehicle you can afford.

What Types of Vehicles Can You Get with Bad Credit?

Ontario Auto Solutions has over 30 brands to choose from to secure an auto loan with. We will do our best to cater to your needs and find a vehicle that works for you and your situation.

Credit Score 101

In Ontario and the rest of Canada, a good credit score averages anywhere from 680-900, while a score lower and 500 means that a consumer is deemed to have bad credit. There are 5 major factors that will determine how a credit bureau calculates your credit score:

  • Your Payment History amounts to 35% of your credit score's calculation. As you make charges to your accounts, then pay your bills, a record of transactions is kept to help determine your credit worthiness.
  • Your Record of Debt/Utilization amounts to 30%. This is determined by the amount of debt you're carrying, weighed against the amount of available credit you have.
  • Your Credit Length amounts to 15%. The more time you've had a credit account open, and have been using that account responsibly, the higher your credit score will be.
  • Recent Inquiries performed by potential creditors or lenders make up 10%. Whenever an organization pulls your credit report, your credit score can be affected slightly. Soft inquiries such as credit checks for home rentals or background checks do not affect your score, but hard inquiries done by financial institutions considering adding more loan and credit products, will cause small, temporary drops in your credit score.
  • Your Credit Diversity amounts to 10%. This means that the larger the variety of credit products you have active, the better your overall credit score will be, as long as you've been using them responsibly.


Ready to get behind the wheel?

Our 30 second pre-approval application will get you well on your way to getting behind the wheel of a great new vehicle.