At Auto Approval Canada bad credit isn’t a barrier to buying a car. Auto Approval Canada has financing tools and credit specials on hand to help you get back behind the wheel with affordable car loans.
Our team has helped thousands of people who have had trouble getting a car loan through conventional sources. We’ll help you finance a car or truck with bad credit or no credit in Alberta, British Columbia, Manitoba, Saskatchewan, Northwest Territories, Nunavut, and Yukon.
Bad Credit?

Our finance sources provide offers to accommodate most credit profiles. Even with past problems, you will still get the credit you need, the car you want, and respect you deserve as a Auto Approval Canada customer.

First-Time Buyer?

Many Auto Approval Canada Customers qualify for financing on their very first purchase. Even if this is the first time you’ve purchased a car, we can offer you a number of options.

Credit problems? Have you been turned down for a car loan?

We can help get you approved for a car loan regardless of your credit history. Our main goal has always been to get you approved. We work around the clock to get you approved no matter what your situation is. We have an amazing track record for getting you in the vehicle you want.

No Credit?

Buying a new car is a great way to establish a credit score, and Auto Approval Canada can help you get credit for the first time. Stop waiting, and get on the road.

In-House Financing Benefits

Being the biggest auto Lender in Canada, we have the ability to set up our own financing solutions in order to help our customers get driving. You could say we set our own rules—so we can give our customers the best bad credit financing options on the market.

Our team of credit experts work directly with you through the entire finance and loan process to make sure you understand exactly how to turn your bad credit into good credit.

We report our loans monthly to the major credit rating suppliers in Canada (TransUnion and Equifax) to make sure all your creditors know you have a car loan in good standing.

 Write Offs
 Closed Accounts
 No Credit
 History of Bad Credit
 Multiple Collections
 Missed Credit Card
 Previous Bankruptcy
 Missed Loan Payments
 New to Canada
 Previous Repossession
 Student Loans in Arrears
 Consumer Proposal

Steps to a car loan on damaged credit



Bad credit doesn’t mean you can’t buy a car, and doesn’t automatically mean you can’t get a car loan with terms that don’t break your monthly budget.

Like everything else, “bad” is a matter of opinion and degree. If the score is borderline, some lenders might still smell a good prospect while others, with slightly different criteria, would see more risk.

Compare personalized auto loan rates.

Most important: Shop around. While the average interest rate for borrowers with good credit is between 4% and 5%, subprime borrowers will pay an average of 10% to 13%, depending on their credit score. Some lenders can go higher than that, according to Phil Reed, senior consumer advice editor for “You don’t want to have the attitude of ‘just get me a loan.’ There are still deals to be made.”

It’s also a good time to be looking. Delinquencies on auto loans dropped in the first quarter of 2015 compared with a year ago, so lenders are more confident, leading to a rise in subprime loans.

Here are some strategies to help you find the best subprime auto loan.

Seek out car-finance lenders

Check out sources known for auto loans, rather than lenders known for catering to low-credit clients. This can include name-brand national banks, local and regional banks, and well-known online lenders.

Don’t assume the worst

Don’t take someone else’s word that your credit is bad. Check for yourself by grabbing your credit report and credit score. Even two candidates with an identical score might not be the same in the eyes of a lender, says John Van Alst, staff attorney for the National Consumer Law Center. “Even if your score is tarnished, you may have a better chance than someone with the same score and no (credit) history,” he says.

Shoot high

Keep in mind: Because auto loans involve less money over a shorter period of time — and a car is easier to repossess than a house — the same credit score that might have put you in a subprime mortgage loan could bring you a prime or near-prime auto loan. If you actually have good credit and apply for a subprime loan, it’s likely that you will get less favorable terms than you deserve.


Shop around

Some lenders will see your tarnished history in a more positive light than others. “That’s where it becomes more important to shop around,” says Reed. But be careful if a lender or lot caters specifically to subprime customers, he says. “Seeing places that are appealing specifically to subprime is a little bit of a warning flag.”

Start close to home

“Even if you don’t think you can get a loan, go to your bank, go to your credit union first,” says Van Alst. Apply at the bank where you have a checking account or your credit union. And see if your employer or insurance company offers auto financing.

Don’t go it alone

Ask someone to go with you, says Massachusetts-based consumer attorney Yvonne Rosmarin. Not only does it help to have an extra set of eyes and ears, but you can give your partner a role to play — such as acting unimpressed, dubious or critical of the loan terms.

Shop loan terms, not monthly payments

Look for the cheapest money — the lowest APR over the shortest period. Don’t be distracted by promises of a lower monthly payment over a longer period of time, says Van Alst. If the only way you can make the payments is to take out a long-term loan, you probably can’t afford the car.

Look out for add-ons

Nonprime buyers are more likely to encounter lending contracts stuffed with nonessential goods and services, says Josh Frank, a risk-modeling manager for the financial software company Intuit and a onetime senior researcher for the Center for Responsible Lending in Durham, North Carolina. Never allow the loan to be contingent on purchasing any add-on, such as extended warranties, after-market services and even insurance, says Frank.

Beware of the ‘yo-yo’

If you finance through a dealer, make sure the terms are final, not contingent or conditional, before you sign and drive away. All too often buyers are told days or weeks later that their monthly payments or the required down payment has been increased. Or they’re told the financing is not complete and they must accept a higher interest rate. It’s sometimes known as a “yo-yo scam.” According to the Center for Responsible Lending, victims of yo-yo scams pay an average of 5 percentage points higher in interest than someone who is not a victim.

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