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400 Credit Score Car Loans in Ontario: Get Driving in 24 Hours

400 Credit Score Car Loans in Ontario: Get Driving in 24 Hours

The chances of you being able to get approved for a car loan with 400 credit score or less are very low unless you work with finance experts. The average Canadian has a credit score of 660, so you have some serious work to do if you want to qualify for competitive car loans.


We will show you how to improve your credit score so you can get a better deal in the future and how to get a 400 credit score car loan today if you're in a rush.

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All credit scores accepted & no down payments required.

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Starting From the Beginning

We need to take a deep dive into your finances to better understand why your credit score is in the 400s. Sign up for free access to both Equifax and TransUnion free credit reporting services.


Your credit report will show all of your credit-related interactions for the last seven years. While looking over your reports, note whether any of the accounts on file are incorrect.


Common credit report errors


Mistakes can happen, and if there are errors inside your credit report, your credit score will go down. You need to go through the proper dispute channel on either TransUnion or Equifax to remove these errors. This process can take 30 days or longer to complete, so do not postpone filing this dispute.


Building a Positive Credit Score

Working under the premise that there are no errors inside your credit report; you will need to look for accounts that are past due or in collections.


With a 400 credit score, there is a good chance that you have multiple accounts that are in collections.


To have a high credit score, there are two things you must do without fail. The first is to always pay at least the minimum amount due by the due date and to keep your credit utilization rate as low as possible.


Not paying your financial obligations on time and carrying too much debt are the causes of your low credit score.


ways to improve credit score


Using a Budget to Increase Your Credit Score

You need to have a budget in place to know where all of your money is going. The budget will help you find cash that can be put towards paying down your debts.


The negative items in your credit report will remain there for up to seven years, so you must pay them down as soon as possible.



Having a budget in place is going to help you determine whether you can afford a new car. The average car payment in Canada is well over $500, so you should earmark that amount in your budget for your new car.


Where to Finance a 400 Credit Score Car Loan

You are working on rebuilding your credit but need a car as soon as possible; waiting months for your credit score to improve is not an option. In this situation, you should contact a local car dealership that specializes in second-chance financing.


The dealership is going to find lenders that will give you a loan, you may not qualify for a brand-new car, but you will be able to get a reliable used car to meet your immediate needs.



If you're ready for a car loan, we'd love to help with that! simply fill in the form below to get started.

Ontario Car Loan Pre-Approval Form


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