How to Get a Car Loan in Canada With Bad or No Credit

Car Loan in Canada

Are you interested in how to get a car loan in Canada with bad or no credit?

Getting a car loan for bad credit is easier than most people think; here are some tips and tricks that you’ll want to follow. For example, you’ll want to understand credit scoring and the available types of loans.

All the roads you travel in Canada require a car to cross them, so if you want to get a car with bad credit or no credit, you might want to know how to find the best options.

If so, read on to learn more about obtaining car loans for no credit.


A cosigner is a friend or someone who agrees to sign the loan with you and be responsible for making the payments if you can’t. The cosigner does not have to be related to you, but they must have good credit.

Once you have found a cosigner, you must fill out a loan application and provide any required documentation. If approved, the cosigner will be responsible for the loan payments if you can’t make them.


Dealerships are typically willing to work with people with bad or no credit because they want to sell cars. To get a car loan from a dealership, you will likely have to put down a larger down payment than you would if you had good credit.

You may also have to pay a higher interest rate. However, if you are willing to work, you can still get a car loan with bad or no credit.

Credit Union

If you have bad or no credit, your best option for a Canada car loan is through a credit union. Credit unions are more willing to work with people with bad or no credit than traditional banks, often offering lower interest rates. It would be best to do a few things to get a loan through a credit union. 

  1. Find a credit union that you’re eligible to join. This may be through your workplace, or you may need to enter a community credit union.
  2. Shop around for the best rates and terms. This helpful website will give you an idea if you have bad credit, as you may offered higher interest rates.
  3. Be prepared to provide collateral. You need to have a guarantor or a down payment.
  4. You should be willing to pay a higher interest rate. Expect this if you have bad or no credit.
  5. Prepared to make a larger down payment. This will lower the amount you need to finance and may help you get a lower interest rate.

You should be able to get a car loan through a credit union if you follow these steps, even if you have a bad or no online lender.

How to Get a Car Loan 

Few things you need to consider in how to get a car loan in Canada with bad or no credit; you can talk to a credit union. They may be able to help you get a loan or extend your credit. You can also try to get a loan from a private lender.

You can search online or in the Yellow Pages for private lenders. You can try to get a cosigner for your loan. This can be a friend or family member. 

For more information and tips on getting car loans for bad credit, browse the rest of this section!

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BSV Staff

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