21 July 2016 8:38 am / Road Trip Drivers Buy a Car Finance a Car

3 Ways to Get a Car Loan With Bad Credit

It happens to us all. You’re on top of payments until you aren’t. Life happens. And suddenly you’re defaulting on loans, unable to make the minimum payments on some bills, and you’re now on the receiving end of terrifying phone calls from creditors who make you wish you had a blanket fort to hide under.

Bad credit creeps up on us all. And unfortunately, having a poor credit score is a major road block (pun intended) to many a thing, from receiving future financial aid, getting that killer new bachelor pad in Gastown, even landing a new job. When you have bad credit, you’re considered a high risk customer, which means no one want to take a risk.

But poor credit doesn’t mean you can’t buy a car. And it doesn’t make you a bad person. Even if you are considered a moderate or high-risk borrower, some finance companies will be more than willing to work with you – we know we do! At BC Drive, we work with all credit scores. We know you’re just trying to get back on the road, and nothing should prevent you from driving the car you want and maintaining the lifestyle you deserve.  

Until you raise your credit score, you’ll find that the traditional way of going through a bank won’t cut it. Here are three easy, alternative ways that you can get a car loan, even with bad credit.


Shop Around

“Bad” is a matter of opinion, so don’t assume the worst when someone tells you your credit is bad. You can check for yourself by obtaining your credit score online (just don’t check too much, it can actually put more dings in your score). Always remember that even if your credit is completely demolished from, say, defaulting on a loan, you may have a better chance than someone with the same credit score and no credit history. Not to mention, some lenders will see your “bad” credit history in a more positive light than others. Shopping around for different lenders will help you gain a better understanding of what is out there for you in terms of auto financing.



Even if you have credible employment history, and a lengthy time at your current address, when your credit is poor, it might not be enough to leverage. One way to help increase your chances of getting a loan (and driving the car you want) is to have a co-signer, like a partner or family member, to help your loan application. The thing to remember about getting a co-signer is that the fates of yours and their credit score is now in your hands (no pressure). When you co-sign a loan, the payment history gets reported on both of your credit reports, so that even if only one co-signer makes the payments, if they’re on time, it benefits both of your credit reports and increases your credit score. Win/win!

Apply to Credit Unions

Credit Unions are similar to banks but they require you to be a member in order to use their services, and are usually owned by the members, not to mention they’re usually more forgiving of consumers who have less than perfect credit scores. They’re serious about helping their members and are more likely to take a chance on you if you’re equally serious about repaying a car loan within a set time frame. It can make all the difference when you have personalized service; who likes being judged by a judge-y big bank? Not us. Not only that, credit unions typically have competitive interest rates that can help save you money.



Get approved today.

Join thousands of Canadians who have trusted BC Drive.