How to Get a Car Loan with Bad Credit in Canada
Let’s face it—bad credit can feel like a major roadblock when you’re trying to finance a vehicle. But the truth is, thousands of Canadians with less-than-perfect credit get approved for car loans every single day. So if your score is shaky, don’t stress—you're not out of options.
Whether you're trying to rebuild your credit or just get reliable transportation to move forward in life, this guide will show you how to get a car loan with bad credit—and not get ripped off along the way.
Understand What “Bad Credit” Really Means
In Canada, your credit score usually falls somewhere between 300 and 900. Anything below 660 is typically considered “non-prime” or “subprime.” But that doesn't mean you're unapprovable—it just means you’ll need to be a bit more strategic.
Most traditional banks may turn you away, but many specialized lenders and platforms (like AutoPlug) are set up to work specifically with people who have bad credit, no credit, or even past bankruptcies.
Step 1: Know Your Numbers
Before applying, it’s smart to check your own credit score using tools like Credit Karma or Borrowell. This gives you a sense of what lenders will see and helps you prepare. Once you know your score, use an auto loan calculator (Canada-specific) to estimate what your monthly payments might look like based on loan amount, interest rate, and loan term.
You’ll also want to explore a monthly car payment calculator to help you stick to a budget you can realistically afford—especially since subprime loans may come with higher interest.
Step 2: Compare Used Car Loan Rates
Used vehicles tend to be more affordable and easier to finance with bad credit. But interest rates can vary wildly. That’s why it’s important to compare used car loan rates across multiple lenders. Some dealerships will only show you one option (usually not the best one), but platforms like AutoPlug work with a wide range of lenders to find the best rate you qualify for, not just what’s easiest for them.
Step 3: Get Pre-Approved
Pre-approval is your best friend when your credit isn’t great. It gives you a clear idea of what you can afford and shows sellers you’re serious. It also protects you from falling in love with a vehicle that’s way outside your budget.
AutoPlug, for example, offers quick online pre-approvals tailored to BC residents—even if your score is low or you’ve had financial hiccups in the past.
Step 4: Don’t Rule Out Refinancing Later
If you end up with a high-interest rate now, don’t panic. Once you’ve made on-time payments for a while, your credit could improve—and that opens the door to refinance your car loan. Refinancing can lower your monthly payment, reduce interest, or shorten your loan term.
Pro tip: Use a monthly car payment calculator again before refinancing to see how much you could save.
Step 5: Work With the Right Team
Let’s be real—some places will judge you for your credit. That’s why working with a team that gets it (and actually wants to help) matters.
Here’s where AutoPlug stands out:
They specialize in car financing for BC residents with bad credit.
Their process is 100% online, quick, and pressure-free.
You’ll talk to real people who help you find flexible payment options and real solutions—not just a random approval with sky-high rates.
Unlike national lenders or big dealer groups, AutoPlug keeps it local, personal, and fast.
Final Thoughts
Bad credit doesn’t have to hold you back from getting a car in Canada. With the right tools—like an auto loan calculator, smart planning, and a trusted partner like AutoPlug—you can drive off with a vehicle that fits your needs and budget.
So don’t let a number on a screen stop you. Start small, stay smart, and keep moving forward.
