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Getting a Car Loan with Bad Credit and No Co-Signer in Canada

Getting a Car Loan with Bad Credit and No Co-Signer in Canada

Co-signers are a common way for people with less than perfect credit to get a car loan. They bolster your credit score with their own and make it easier for lenders to agree the loan. But they aren’t the only way to access bad credit car loans in Oakville. But are bad credit car loans without a cosigner possible?


Using a co-signer is one way to access car finance but it isn’t the only way.


Improve your credit score


Depending on how much time you have, working on your credit score can improve your chances of getting a car loan in your own right. It won’t always be feasible as it can take months but if you have the luxury of time, we recommend using it to improve your credit score as much as possible.


The higher your score, the higher your chances of being accepted for an Oakville car loan.


Save a down payment


The higher your down payment, the higher your chance of getting the loan. Lenders like down payments as they mean they would lose less money if you defaulted. They are also a demonstration of intent. The more money you put down, the more you have invested in the loan, the more likely you are to successfully pay it off.


A larger down payment will also lower the overall Oakville loan amount, which also contributes to being accepted for it.


Saving for a down payment requires the same balance as improving your credit score. You’ll need time to save up but not so much time that you don’t get your car or prices rise to offset what you’re saving.


That’s a decision only you can make!


Get your paperwork in order


Having all your paperwork prepared and ready to go will also help your application. If a lender can see clearly how much you earn, your outgoings, your debt and whether you can afford the loan or not, they can make their decision.


This is especially important if you’re self employed, a gig worker or contractor. The more evidence of income you can provide the more likely you are to be accepted.


It isn’t about how much you earn as self employed, although that helps. It’s about how regularly you earn what you do. The more consistent your income, the more likely you are to be approved for the loan.


Work with Oakville car loan experts


You can apply for car loans online or with mainstream lenders but you may not have much success. Mainstream lenders don’t usually deal with bad credit car loans without a cosigner and online applications are very one dimensional.


We recommend dealing with humans who can discuss your situation with you, help you frame your application and work with you every step of the way. We also have access to a very wide pool of lenders, offering you a lot more choice than other options.


If that wasn’t enough, as a large dealership network, we can probably find you the car of your dreams too!


We will use all our skill and experience to deliver the lowest possible Oakville auto loan rates, guaranteed. Contact Car Nation Canada Direct to learn how we can help.


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Categories: Auto Loan

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