Subprime Car Loans in Canada: How to Get Approved

Subprime Car Loans in Canada: How to Get Approved

Posted on July 8, 2022

Do you want to know more about EV car loans for people with bad credit? You might have recently been denied a car loan and need to understand how the process works from start to finish.

Our goal is to help people in Canada learn more about the subprime car loan market and how to buy a car with complete confidence.

What is a Subprime Car Loan?

You should know from the start that there is no standard definition of what constitutes a subprime car loan.

Each lender sets its own loan underwriting protocols, so one lender might classify a borrower as a prime borrower and another as a subprime borrower.

Bear in mind that there are a few things you need to know about financing a car.

First, if your credit score is less than 620 or if it is hard to prove how much money you make, you might be considered subprime.

This doesn't mean you're a bad person; it just means you don't have a good track record when it comes to paying your personal bills on time.

You might want to sign up for free credit monitoring services like Credit Karma. These apps give you real-time, access to your TransUnion credit report and score, which is completely free.

Once you can see your credit report, it will be easier to figure out where you stand so you can work on improving your credit score.

Why it's Important to Improve Your Credit Score

Your credit score doesn't stay the same; it changes every month based on how you've handled your money over the past 30 days.

Your credit score will go up if you pay your bills on time and as agreed.

Aside from making your payments on time, you should also try getting rid of as much debt as possible.

Even if you have good credit, borrowing money will cost you more because the Bank of Canada is raising interest rates.

Making the Most of Your Budget

Now is a good time to look over your budget and start doing some math to figure out where you can save money.

If you don't use your subscription services anymore since the pandemic is over, you might be able to save money by cancelling them.

If you've cut your budget as much as you can and still don't have much room, you might want to think about getting a second job. This will help you make more money and teach you new skills.

Where to Get the Best Subprime Car Loans

You probably found this article while looking for EV car loans online, which is how you got here. Even though it's a good idea to research online, you should take our advice and work with a dealership nearby.

A dealership will take the time to get to know you and figure out which lender will work best for you.

These local dealerships know all of the lenders in the Canadian auto financing industry and who has the best terms.

These dealerships will do everything they can to help you get a great deal on a new car, but you have to reach out to them first.

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