Lending criteria have changed during the past two years making it a bit tougher for customers to obtain financing for homes or vehicles.  If you have bad credit and you are looking to get financed for the purchase of a new or used vehicle you should take a minute to review what lenders currently look for in an applicant.

Below are minimum requirements for a bad credit car loan approval in today’s market:

• Minimum Income: Minimum of $1,900-$2,000  (Buy Here Pay Here lots and Rent to Own car dealers will typically have lower income requirements)
• Bankruptcy: The 341 meeting of creditors must be completed before you can be approved following Chapter 7 Bankruptcy.  For Chapter 13, an Authorization to Incur Debt is required from the trustee before approval can be completed
• Repossession: No repo’s within the last year unless it was included as part of a bankruptcy filing.
• Credit Scores: Most mainstream lenders and dealers will work with credit scores above 600, though many Buy Here Pay Here Dealers and Rent to Own dealers may not run a credit check.

Yes, it is a bit tougher to get approved for car loans in our new economy, but it is not impossible. Don’t let tougher credit guidelines scare you away.

Finding a bad credit car loan in Canada is made easy with the use of online bad credit car loan quotes such as Auto Credit Express and Web2Carz. Both these companies serve Canadian customers as well as individuals located in the United States.  Below is a description of the two sites we recommend to help you find auto financing despite poor to bad credit in Canada.

Auto Credit Express

New or Used Car Loans
Fast, Easy 1-Page Application
Large network of Canadian lenders and car dealers
Proven track record – More than 116,000 bad credit car loans secured

www.FundingWay.com

Also known as FundingWay, this site is a well known source for auto financing of all types. Consumers with any credit types can find car loans at low rates and many financing options are available to individuals with poor to bad credit as well thanks to a growing network of lenders and car dealers who are able to serve diverse financing needs. They have been serving the Canadian market for some time now offering no hassle car loans for customers with challenged credit.

Min. Requirement: Gross monthly income of $1,500 required for credit scores under 625.

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If you have bad credit score (less than 600) most lenders will instantly decline a loan application. In today’s tight credit market and with growing economic concerns it seems to be getting harder and harder for people with bad credit to find auto financing. This comes at a time when many Americans are facing the realities of foreclosure and bruised credit.

There are still some lenders that realize that some individuals get a bad credit score because of reasons beyond their control. Because lending underwriting criteria changes frequently, it may be difficult for consumers to shop for a bad credit loan on their own. One lender or dealer with generous bad credit financing terms may stop lending to poor credit from one day to the next.

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