Are you in the market for a new vehicle in Calgary, AB? You may need a car loan to help make that possible. Many Canadians believe if you have bad credit, you will not be able to get a loan, car or otherwise. Thankfully, that’s not the case!
Car Loans
There are plenty of car loan companies willing to lend even to those with a bad credit rating. The only catch is your interest rate may be a little higher. If you want to find out more about the best bad credit loan companies in SE Calgary and NE Calgary, AB, keep reading!
1. LoanConnect
If you want to look at multiple bad credit car loans simultaneously, LoanConnect is a great option. LoanConnect is a loan search engine that can help Canadians find the best car loan in Calgary. It is one of the largest and most well-known loan search engines. In fact, they have processed more than $500 million in loan applications so far.
LoanConnect acts as a middleman between you and the loan providers. They are very popular in Calgary as they can connect you with hundreds of vehicles, dealerships and lenders across the city. As LoanConnect works with multiple lenders (see Scotiabank), they can easily get Canadians with a bad credit score a loan. They specialize in poor credit loans.
To apply for a car loan with LoanConnect, you must be a Canadian citizen and the age of majority in Calgary, Alberta. You can have current debt and still get approved. However, that debt must be less than 60% of your income.
Finding a bad credit car loan with LoanConnect is easy, fast, and free. The application process should only take five minutes. You simply need to provide your personal information and your desired loan amount.
To apply, you will need to supply LoanConnect with your personal and financial information. You will also need to choose a loan type. LoanConnect has a variety of car loans, personal loans, bad credit loans, debt consolidation loans, and more.
When applying for a loan, you can first choose to either do a general loan search or apply for pre-approval. Pre-approval involves Loan Connect accessing your credit score. They will use your credit profile to suggest loan providers that are most likely to accept your application. You can then review the list and tailor it to your specific requirements.
LoanConnect will then provide you with a list of lenders that meet your needs and that are likely to accept your application. You can choose one and then apply for your bad credit car loan with them. If you are approved, you can get your money in less than 12 hours!
A car loan usually has lower interest rates compared to unsecured loans. This is because if you default on your repayments, your vehicle can be seized as collateral. This means not only are your monthly repayments likely to be lower but there is a higher chance of your car loan application being accepted.
The loans you are likely to be accepted for are dependent on your credit rating. LoanConnect has no minimum credit score requirement, meaning anyone can qualify for a loan. Even those with poor credit will have the opportunity to customize their loan. This ensures the loan fits your requirements and financial situation.
You are not obligated to take a loan from any lenders they suggest, so no pressure. Why not get a free, personalized quote with LoanConnect today?
To help you decide, let’s take a look at some of the pros and cons of using LoanConnect for your car loan.
Pros
- You can obtain a loan of up to $50,000. You can even apply for smaller loans, perfect for those looking to buy a used car.
- Interest rates start as low as 4.6%. However, those with a bad credit score are likely to be offered a higher interest rate.
- Loan terms vary from 6-60 months. Choose the best loan term for your financial situation.
- You could receive your loan funds the very same day. The application process is quick and secure.
- There are 12 different loan types to choose from, from a variety of lenders. All lenders are fully vetted and verified before they enter into a partnership with LoanConnect.
- Searching for a car loan or applying for pre-approval has no negative impact on your credit score.
- There is no minimum credit score requirement when applying for a loan.
- There is no minimum annual income requirement.
- Even those with a poor credit score can be accepted for a loan and customize their loan to suit their financial needs.
- As long as your debt is less than 60% of your income, you can still be accepted for a car loan.
- LoanConnect’s online platform and search engine are completely free to use.
- There is no obligation to commit to a loan, even if you have been pre-approved.
- The online platform is well-designed and very user-friendly.
Cons
- The lower your credit score the higher your interest. Those with a bad credit rating are likely to pay high interest on their car loan.
- The maximum loan amount is $50,000. This is not likely to cover the cost of a more expensive or higher-end car.
2. Car Loans Canada
If you’re looking for a different company that partners with dealers, Car Loans Canada is a good option. They have a good repertoire of partners, and they have been around for over a decade. They are also present in every part of Canada, which is evident from our other car loan reviews, namely in Edmonton, Ottawa, Toronto, and also Ontario and BC.
Car Loans Canada is a highly rated car loan website. They have provided car loans to more than 1.6 million Canadians so far. 12,000 car loans are approved every month on their website.
Car Loans Canada allows you to shop and be pre-approved for car loans in Calgary. Their eligibility requirements, however, are a little stricter. Along with being Canadian, having a license, and being the age of majority in Calgary, AB, you must have a monthly income of $1,800 minimum. You must also have been employed for the last three months.
They will also conduct a credit check. You can still get approved if your credit rating is low, but your interest rate will likely be higher as a consequence. Thankfully, you can always use a car loan calculator to estimate your payments. The calculator available on Car Loans Canada’s website is easy to use and can be very helpful. You simply input the necessary information and you will receive an instant estimate of your car loan.
If you meet all of their eligibility requirements, you can apply for a bad credit car loan on their website. All you need to do is fill out your personal and financial information. A dealer partner will then contact you to discuss your bad credit loan in detail. You will also receive a list of lenders that meet your specific needs.
Car Loans Canada doesn’t service Quebec or the territories. But if you are in Calgary, Alberta, they are an excellent option for procuring your car loan.
Car Loans Canada boasts an all-credit accepted policy. Even those with a bad credit rating or no credit history can be accepted for a car loan. Car Loans Canada is partnered with bad credit loan providers in Calgary. If you do not qualify for a traditional car loan or personal loan, they will provide you with a list of bad credit providers.
Let’s take a look at the pros and cons of choosing a car loan with Car Loans Canada.
Pros
- Car Loans Canada’s website provides useful tips and information on a variety of loan topics. This includes topics such as factors that may negatively impact your credit application and steps you can take to improve your chances of acceptance.
- The application is quick and simple. It takes less than two minutes to see your personalized list of loan options.
- Applying for pre-approval allows you to see which loans you are likely to qualify for. This means you do not need to make multiple credit applications with different loan providers.
- The list of loan options will be tailored to your specific requirements.
- You can choose the term length that best suits you – up to 96 months.
- Interest rates vary from 2.99%-31.99%. The lower your credit score the higher your interest rate is likely to be.
- You do not need a SIN (Social Insurance Number) to qualify for a car loan.
- There is no minimum deposit requirement. However, if you would like to pay a deposit, this is likely to lower your monthly repayments.
- You can choose how often you would like to make repayments. Your options include weekly, bi-weekly, semi-monthly, and monthly.
- If you are unsure of whether to buy a new or used car, Car Loans Canada offers some great information and advice. They help you to calculate monthly repayments, the value of the car and the effects of depreciation.
- You have the option to choose an open-ended loan. This allows you to make lump sum payments or pay off your loan completely without any financial penalties.
Cons
- The eligibility requirements are stricter than other loan providers.
- Those with a bad credit score are likely to pay high-interest rates.
3. Canada Drives
Next up is Canada Drives, another loan search engine. Canada Drives connects Canadians with dealers who can offer them bad credit car loans. Canada Drives is popular because they specialize specifically in car loans. They have provided more than one million Canadians with car loans in the last decade.
Canada Drives is partnered with more than 350 car dealerships across Canada, including in Calgary. Their website features an easy-to-use car loan calculator. This helps you to estimate your interest rate, loan term and monthly repayments. You can choose a new or used car loan.
Your bad or poor credit score does not matter to Canada Drives, as long as you meet their eligibility requirements. As with most car loan companies in Canada, you need to be Canadian and the age of majority in Calgary, AB. With Canada Drives, you need to have a minimum income of $1,500 and employment for the last three months.
If you have poor credit but are eligible, applying is easy and is all done online. Instead of picking a loan type, you need to pick a type of car. This is so Canada Drives will only show you their dealer partners that have that car in stock.
You will need to input your personal information, vehicle information and any down payment you ate able to pay. After you fill in your personal and financial information, Canada Drives will connect you with a certified dealer in Calgary who will call you to discuss your car loan.
You can also choose the pre-approval process. Before you begin shopping for a car, pre-approval will show you the value of the loan you are likely to be accepted for. In many cases, you will be connected to more than one dealer. You can then choose the best dealer and loan type for you.
Once the dealer approves you and you agree to their terms, they could send your new vehicle in less than 48 hours!
Unlike many dealerships or car loan providers, Canada Drives has no hidden fees or costs. Their pricing is competitive, transparent, and easy to understand.
Here is a list of some of the pros and cons of choosing Canada Drives for your car loan.
Pros
- The online car loan calculator is free to use. The calculator will give you a clearer idea of your loan options.
- Even those with a bad credit score or no credit history are likely to be accepted for a car loan.
- Car loans are available up to $75,000. This is more than some of Canada Drive’s competitors.
- Loan terms vary from 12-98 months.
- Loan applications take less than three minutes.
- There are no hidden fees and costs. The price you see is the price you will pay.
- Once you choose a loan, you will be automatically connected with the dealership. The dealership will then finalize your loan application.
- Canada Drives has a 24/7 helpline available.
- You could receive your car loan in less than 48 hours.
- Once your application has been accepted, your new car will be delivered directly to your door.
- All cars undergo a 150-point inspection. Customers will also receive a free CARFAX report.
- All cars have a 7-day money-back guarantee and a 30 day/1,500km warranty.
- You can choose how often you would like to make repayments. Your options include weekly, bi-weekly, and monthly.
Cons
- Many of Canada Drives’ partnered lenders will not be available to you if you have a poor credit score.
- The top end of the interest rate (46.96%) is higher than many of Canada Drive’s competitors.
- It is very difficult to qualify for higher-value loans. Many of Canada Drive’s customers are accepted for loans of $35,000 or less.
4. Refresh Financial
Refresh Financial launched in 2013 and is designed specifically for those with bad credit. They are an alternative financial institution that specializes as a credit building lender. A credit building lender helps those with a bad credit score, or no credit history build or rebuild their credit score. They aim to improve your credit score and help you reach your financial goals.
More than 100,000 Canadians have so far benefited from using Refresh Financial. Their loans are designed differently than traditional lenders. Their Credit Builder Loan does not provide you with money upfront. Instead, you make payments into a secured account. You can access these funds at any time and make withdrawals.
You first need to complete a digital application. Instead of completing a credit check, Refresh Financial uses the information you provide to show you how to build your credit score. They provide automated payments and payment reminders and report directly to the credit bureaus. This helps to build your credit score quickly. You can deposit funds in several ways, including bi-weekly and monthly.
Refresh Financial aims to help you to improve your credit rating and get your finances back on track. It is a sensible alternative to bad credit loans. Bad credit loans usually have extremely high-interest rates. This means your monthly repayments are likely to be very high.
Refresh Financial is based in British Columbia and is owned by Borrowell. Borrowell is the largest online lender in Canada. Refresh Financial’s services are available across Canada, including in Calgary.
Using Refresh Financial makes it much more likely that you will be accepted for a traditional loan in the future. They also offer a credit builder credit card as an alternative option.
Loan terms with Refresh Financial can vary from 36-60 months. Loans are available between $1,250 and $25,000.
Let’s take a look at the pros and cons of using a credit builder loan with Refresh Financial as an alternative to traditional car loans.
Pros
- Refresh Financial can help those with a bad credit score improve their credit profile.
- All payments you make will be reported directly to Equifax and TransUnion. These payments will then show on your credit report and build your credit score.
- There is no credit check required. Customers are not required to have any previous credit history.
- There are several payment options available including bi-weekly and monthly.
- Any funds you have deposited can be accessed at any time.
- Refresh Financial offers you free access to your credit report and credit score. This information is provided by TransUnion.
- APR is set at a fixed rate of 19.99%, regardless of your credit score.
- Customer service can be contacted over the phone, by email or online.
- Monthly repayments will vary depending on how much you plan to borrow. You can tailor your payments to fit your financial situation.
- Refresh Financial offers free educational tools. They offer advice on how to understand and manage your debt, expenses, and overall finances.
- Black Tier customers will get free access to credit reports and credit alerts. They can also access the credit simulator, goal manager and Refresh Academy and Goals. Refresh Financial customers can get a 30-day free trial of Black Tier.
- Loan customers are also likely to be accepted for the Refresh Financial Secured Card.
Cons
- Refresh Financial is only recommended for those with a bad credit rating. You will not receive a loan until you have made significant payments into your account.
- If you make a withdrawal, you will be subject to a $20 withdrawal fee.
- Withdrawn funds may also take up to 15 business days to be deposited into your account.
5. Borrowell
Borrowell has been operating since 2014 and has become one of the largest online lenders in Canada. Their online platform is easy to use, and their service is both fast and transparent. There are no hidden fees to worry about and it is completely free to use their platform.
Borrowell has more than 50 financial partners across Canada. They provide a variety of loan options including car loans, personal loans, and bad credit loans. More than 1.5 million people have used Borrowell’s online platform.
Loans are available between $500-$35,000. You can choose a loan term between 6-60 months. When using Borrowell’s loan search, you can specify your desired loan amount and preferred loan term. This ensures your results are tailored to your requirements.
Borrowell is also partnered with Equifax. When you sign up on Borrowell’s website, you can access your credit score free of charge. You can use both the website and the mobile app to check your credit score. Borrowell will use this score to match your credit profile with loan providers that are likely to accept your application.
This pre-approval service provides you with a list of your loan options. The list will feature the loans you are most likely to be approved for. It will also show you the terms of the loan, such as the interest rates you are likely to pay. Applying for pre-approval helps you to avoid being rejected for a loan and avoid any negative impact on your credit score
Only those with a higher credit score are likely to be accepted for a traditional car loan. If your credit score is lower than 575, you can apply for a bad credit loan. As Borrowell is linked with so many financial partners, Some of Borrowell’s financial partners are providers that specialize in poor credit loans. This means you are likely to be accepted for a loan, regardless of your credit score. You can then use the money you receive to purchase your car directly.
Let’s take a look at some of the pros and cons of applying for a car loan with Borrowell.
Pros
- Borrowell considers several factors when considering your loan application. This includes your credit score, the likelihood of you making repayments and the value of any collateral.
- Download the Borrowell mobile app to check your credit score for free. You can also use the app to apply for and manage your loan.
- Borrowell’s free credit score checker aims to help you improve your long-term credit rating and financial health. Users of Borrowell see their credit score rise an average of 15 points.
- There is no obligation to commit to a car loan with Borrowell.
- Borrowell will initially only perform a soft credit check. This has less of an impact on your credit score. Once you have chosen a loan and submitted an application, a hard credit check will be performed.
- The application process is quick and simple. The mobile platform is easy to use, and it takes less than three minutes to receive a list of loans tailored to your specific requirements.
- Loan terms range from 6-60 months. Choose the loan term that best suits your needs.
- Flexible repayment terms are available. There are no fees or financial penalties if you make a prepayment or pay off your loan early.
- Your free Equifax credit score is updated every week. You can access this on the website or the app. Accessing your credit score through Borrowell offers a saving of $19.95 per month.
- You can receive personalized tips on how to improve your score.
- You can choose from multiple deposit options.
- You can choose to take a secured or unsecured loan.
- It is still possible to apply for a loan if you have experienced bankruptcy.
- Receive your funds in less than 48 hours.
- Borrowell offers you access to free credit tips and educational resources on a variety of topics. This includes how to help you improve your credit score and information on loans.
- Borrowell has an A+ rating with the Better Business Bureau – the highest rating available. This suggests they have good customer service and deal with any complaints to the customer’s satisfaction.
- Bad credit loan providers do not only consider your credit score when considering your loan application. They will also look at your income, monthly expenses, and debt load.
Cons
- Standard car loans and personal loans have strict requirements. This includes a minimum annual income requirement of $20,000 and a minimum credit history of 12 months. Although it is easier to be accepted for a bad credit loan, interest rates will be significantly higher.
- Pre-approval does not guarantee you will be accepted as Borrowell does not perform a full credit check.
- There is no option to take your loan over a longer-term.
The Bottom Line
Many people are not able to afford a vehicle without a little help. Taking out a car loan is normal in Calgary, Medicine Hat, and the rest of Canada. Even if you have bad credit, this is still an option for you, especially with the loan providers we have looked at today.
If you are looking for more information on any of the poor credit loan companies we discussed, look for the ‘Contact Us’ section on their respective websites.
Buying a new car and obtaining a car loan should not be unattainable, even if you have a bad credit score. Take advantage of the free credit score checkers and loan search engines that these online platforms provide. You can then examine the available loans and suggested loan terms before making your decision.
Don’t let bad credit hold you back. Apply for a poor credit car loan or apply for a free quote to help you decide, Calgary! Go out and get your dream vehicle today, regardless of your credit rating.
