Bargaining with a car dealership is often stressful, and adding a bad credit history to the mix can make things more anxious indeed. While Uber, public transit, and taxis might be options, having a four-wheeler to drive wherever and whenever you need is a benefit that most Canadians prefer to have. Whether you live in Alberta, Ontario, British Columbia, Quebec, Northwest Territories, or anywhere else in Canada, preparation is the key when shopping for auto loan approval bad credit. If you are looking for guaranteed auto loans for bad credit, A2U can make things simple for you by getting you pre-approved for a great vehicle (both NEW and USED) with a payment plan that works at your convenience.
- Your Credit Score:
When applying for an auto loan, what the majority of financial institutions look for is the applicant’s credit score. In Canada, credit scores range from 300-900 points. As per a report from Equifax, credit scores between 660 and 724 are considered good and will likely qualify you for a loan. Nevertheless, credit scores below 660 might make it difficult for you to prequalify for auto loan bad credit. Repairing and rebuilding your credit score seems like a challenge when your credit is poor. The best way to improve your credit score is by making regular loan payments, showing lenders that you are reliable. However, for that, you need to get approved for a loan, and that’s not easy because of your poor credit history. This situation is called a conundrum. But, you don’t have to lose hope here because when the banks say ‘NO,’ there are other simpler ways to get an auto loan. A2U has been in the finance industry for years now, helping customers with bad credit get approved for a vehicle that fits their lifestyle and budget.
Another factor that prevents you from getting instant auto loans for bad credit is your income. Some lenders may provide you with an auto loan with a bad credit score, but the deciding factor relies on your income. Essentially, the minimum monthly income for an individual to qualify for a car loan with bad credit is CA$1,800 before taxes or deductions. However, meeting the minimum income criteria doesn’t really matter, as some lenders even work with customers who earn from government programs. And if you can show that you have steady employment, things can work for you. A2U is known for offering low income bad credit auto loans for customers, helping them own a suitable car.
A2U helps you qualify for the car of your choice without any credit checks or commitments. Just fill in the form, and our auto experts will locate the ideal vehicle and get you the approval on the spot.
Please note that whether you do not have an established credit history, are new to Canada, or a recent graduate, you are eligible for a bad credit car loan with A2U.
Our auto experts have some tips for bad credit holders looking to secure approval for car finance.
You will need to show:
- Drivers license
- Mobile phone number
- Bank statements
- Proof of employment
- Understand your budget – A2U will help you give a rough estimate of what to expect
- Consider a used car – used car market is extremely robust in Canada
- Get pre-qualified online – A2U can help you get pre-qualified for free and locate dealerships that know how to help
- Decide on a down payment – you necessarily don’t have to pay a down payment with A2U, but it helps in reducing the loan amount (if you have bad credit, you should avoid a down payment. A2U has $0 down payment options for you)
- Decide a cosigner – a cosigner can increase your chances of loan approval on bad credit. If you have a friend or a family member who agrees to share the responsibility for your car loan, make him/her the cosigner
- Fill a 13-step Q&A form that requires you to answer your preferences, provide information about your income and pre-qualify online.
- Within 24 hours, our customer representative will contact you to discuss the details of your options.
- Once everything fits comfortably into your application, you will be connected to potential dealerships that have a selection of your chosen vehicle, keeping in mind your budget.
- Just choose a car you love, fill in some paperwork and drive your dream car back home.
AU2 has helped hundreds, and thousands of Canadians get approved for auto loans with ease, irrespective of bad credit car loan city. We have a partner network with a range of car dealerships in Canada. Our auto experts work hard to get applicants approved for the best car and financing options within 2-3 business days.
Looking for an affordable car with bad credit? Apply with A2U today for FREE!