Car Deal Canada

Bad Credit Car Loans in Regina

Bad Credit Car Loans in Regina

Getting approved for a car loan when you have bad credit can be challenging, but it’s not impossible. In this comprehensive guide, we’ll walk you through everything you need to know about getting bad credit car loans in Regina, Saskatchewan.

We’ll start with the basics – what is a bad credit car loan, who offers them, and how they work. Then we’ll discuss tips for improving your credit score, finding the right lender, negotiating the best deal, and successfully managing your auto loan payments.

Whether you have no credit, poor credit, or have recently gone through bankruptcy, divorce, or other financial hardships, you do have options for financing a car purchase even if your credit score isn’t perfect. With some preparation and the right strategy, you can get behind the wheel of a reliable used car while also building your credit back up over time.

Read on for expert advice, so you can feel fully informed and confident when shopping for bad credit auto financing in Regina and ultimately driving home your next car.

Get Pre-Qualified in Under 60 Seconds

All Credit Approved and 0 Money Down Options Available


What is a Bad Credit Car Loan?

A bad credit car loan is a type of financing that allows people with poor credit histories to purchase a vehicle. These loans are designed for borrowers who have credit scores below 600 and would not typically qualify for traditional auto financing from a bank or credit union.

Bad credit car loans work by having the lender take on more risk in exchange for charging a higher interest rate. Since the borrower is seen as more likely to default, the lender needs to charge more interest to try and recoup that potential loss. The upside for the borrower is that they can get approved for car financing even with past credit issues like bankruptcies, defaults, collections, or late payments.

These types of loans are ideal for those who need a reliable vehicle but have limited financing options due to their credit score. They provide a way for borrowers to rebuild their credit by making regular on-time payments. While bad credit car loans typically have higher interest rates, they can still be an affordable option for purchasing a quality used car.


Benefits of Bad Credit Car Loans in Regina

Bad credit car loans offer many benefits that allow people with poor credit to still get a vehicle. Here are some of the top advantages of bad credit auto financing:


  1. Allow people with poor credit to still get a vehicle – The main benefit is that these loans give people a second chance when they may not qualify for traditional financing. If you have past credit issues, a bad credit car loan lets you get reliable transportation.


  1. Help improve your credit score – Making consistent and on-time payments can improve your credit over time. A bad credit auto loan lets you rebuild your credit history by adding positive information to your credit report.


  1. Get to work or school – Having a car allows you to commute to your job or classes. Reliable transportation provides access to more opportunities.


  1. Gain independence – Owning your own car gives you the freedom and flexibility to go where you want, when you want. You don’t have to rely on public transportation or others for rides.


Risks and Downsides

While bad credit car loans can help you get approved for financing and into a new vehicle, they do come with some risks and downsides to be aware of.

The main downside is that interest rates are typically much higher compared to those with good credit. Since lenders view you as a higher risk borrower, they will charge more interest to offset potential losses. Interest rates can easily be over 20% with some lenders, making your total cost significantly higher over the loan term.

There is also a higher chance of repossession if you fall behind on payments with a bad credit auto loan. Since your credit is already poor, missing payments can further hurt your credit score and lenders will be quicker to repossess the vehicle. This can leave you without a vehicle but still owing money on the loan.

You may have a more limited selection of vehicles to choose from as well. Many lenders place restrictions on the age and mileage of vehicles they will finance with bad credit loans. You may be limited to older used vehicles vs newer models. The loan amounts may also be lower than with good credit.

While bad credit car loans are an option, you need to carefully weigh the risks and downsides vs the benefits. Understanding the higher costs and chance of repossession is important before taking the plunge.


Interest Rates in Regina

Bad credit auto loans in Regina typically have higher interest rates compared to auto loans for borrowers with good credit. This is because lenders view applicants with poor credit as higher risk, so they charge more in interest to offset the increased chance of default.

For buyers with good credit (credit scores above 700), interest rates on new vehicle loans average around 4-6%, while used car loans average 5-8%. But for bad credit borrowers, average interest rates are:


  • New car loan: 8-14%
  • Used car loan: 12-20%


Interest rates on bad credit auto loans can vary widely based on your specific credit situation. The lowest rates, around 10%, may be available if your score is at least 600. But with very poor credit below 550, rates can be over 25%. The best way to find your personalized rate is to get pre-approved by a lender.

It’s wise to shop around and compare bad credit loan rates from multiple lenders in Regina. Even a few percentage points difference in APR can equal thousands in extra interest paid over the loan term. Online lenders often offer the most competitive rates.


Improving Your Credit Score

Your credit score plays a big role in determining the interest rate and approval odds for a bad credit auto loan. The lower your score, the higher your interest rate will likely be. That’s why it’s smart to work on improving your credit before applying for a car loan.

Here are some tips to boost your credit score:


  • Pay all your bills on time – Payment history makes up a large chunk of your credit score calculation. Being late can severely hurt your score.
  • Pay down balances – Keep credit card balances low. High balances compared to limits will lower your score.
  • Limit new credit – Apply for new credit sparingly, as too many new accounts can indicate risk.
  • Correct errors – Dispute any errors on your credit reports that may be artificially deflating your score.
  • Increase credit limits – Ask issuers to raise your credit limits so you utilize less of your available credit.
  • Mix up credit types – Use a mix of installment loans and revolving credit to demonstrate you can manage different types of accounts.


With some strategic moves to build your credit, you can qualify for a bad credit car loan with better terms. Take 6-12 months to boost your score before applying for an auto loan.


Getting Approved

Getting approved for a bad credit auto loan in Regina can seem daunting, but being prepared and knowing what to expect can help increase your chances. Here’s what lenders typically look for and require to approve a bad credit car loan application:


Credit Score

Your credit score gives lenders an idea of how reliably you’ve repaid debts in the past. The minimum score needed for approval varies by lender, but many may approve scores as low as 500. The higher your score, the better your chances of getting approved and securing a lower interest rate.



Lenders want to see that you have enough steady income to make the monthly payments. Bring pay stubs, tax returns, and bank statements to verify income. Some lenders may require proof of income for a certain period of time, such as 3-6 months.


Down Payment

While $0 down payment options exist, putting some money down shows lenders you’re financially committed. Save up if you can, as a 10-20% down payment can lead to better loan terms.


Proof of Residency

Lenders will want to verify where you live, so bring copies of a utility bill, lease agreement, or other mail with your current address.



Having references vouch for your character can help improve your chances. Gather 2-3 personal references with name, address, phone number, and relationship information.



If you have difficulty getting approved on your own, a co-signer with good credit may help you qualify and get better terms. Make sure the co-signer understands they’ll be equally responsible for repaying the loan.

Come prepared with all the necessary documents, and consider having a co-signer ready just in case. Being organized and diligent throughout the application process can go a long way towards getting your bad credit auto loan approved.


Finding the Right Lender

When looking for a bad credit car loan in Regina, it’s important to find the right lender who is willing to work with your unique credit situation. Here are some tips on what to look for in a lender:


Overview of lenders that offer bad credit loans in Regina

There are several major lenders that frequently provide bad credit auto loans to residents of Regina. Some of the top options include:


  • National banks like RBC, TD, Scotiabank, and CIBC
  • Major dealerships like Capital GMC, RMP Chevrolet, and Bennett Dunlop Ford
  • Specialized lenders like Canada Drives, iRide Auto, and DriveNation
  • Credit unions like Affinity Credit Union and Innovation Credit Union


Many of these lenders have online applications available, so you can easily compare quotes between multiple companies.


Things to look for in a bad credit lender

When researching lenders, keep an eye out for:


  • Competitive interest rates – This can vary greatly between lenders depending on your credit
  • Flexible terms – Options for longer loan terms can mean lower payments
  • Down payment requirements – Some lenders offer $0 down on bad credit loans
  • Add-on products – Things like GAP insurance and extended warranties that add costs
  • Pre-approval – Getting pre-approved can give you negotiating power when shopping
  • Customer service – Look for responsive lenders who can guide you through the process


By comparing multiple lenders on these key factors, you can find the right loan for your budget and credit situation.


The Car Buying Process

When you have bad credit, the car buying process can feel overwhelming. However, with some preparation and knowledge, you can find and purchase the right vehicle. Here are the key steps to take:


Determine Your Budget

First, figure out how much you can realistically afford for a down payment and monthly car payments. Get pre-approved for financing so you know what kind of loan terms you qualify for. This will help you narrow down your options.


Research Cars Online

Spend time researching makes, models, prices and reviews of used cars in your area. Look for reliable vehicles that fit your budget and needs. Comparison shop online listings to get an idea of pricing.


Find Dealerships That Work with Bad Credit

Seek out dealerships that specifically advertise bad credit financing programs. They will be more willing to work with your credit situation. Ask about their approval process and loan terms upfront.


Test Drive Top Choices

Narrow down your options to a few top contenders. Visit dealerships in person and take the vehicles for extensive test drives. Bring along someone knowledgeable about cars if possible.


Negotiate the Best Deal

When you’ve picked out the car you want, negotiate firmly but fairly with the dealership to get the best possible price. Don’t be afraid to walk away if you can’t agree on terms.


Review Financing Carefully

Scrutinize the financing offer in detail before signing. Make sure you understand the interest rate, fees, timeline and all terms being agreed to. Get everything in writing.

By following these key steps, you can confidently shop for and purchase a quality used car, even with less-than-ideal credit. Do your homework and you’ll be driving your new vehicle in no time.


Down Payment Options

The down payment is the amount you pay upfront when purchasing a vehicle, and it can significantly impact the loan terms you receive. With bad credit, coming up with a sizable down payment may be challenging but also necessary to get approved. Here are some tips on saving for a down payment and taking advantage of down payment assistance programs:


Saving for a Down Payment

Ideally, you should save up 20% of the vehicle’s price for a down payment. This shows lenders you are financially committed and can lower the amount you need to finance. However, with bad credit lenders may approve you with as little as $0 or 10% down. Saving whatever you can ahead of time will lead to better loan terms.

Open up a separate high-yield savings account and set up automatic transfers. Make lifestyle cuts like eating out less or downgrading your cable package in order to put more cash aside each month. If you get a tax refund, bonuses, or gifts, put them straight into your down payment fund.


Minimum Down Payments

While zero down payment options exist, they often come with very high interest rates and are best avoided. Putting at least 10-20% down shows lenders you can manage your finances responsibly and are invested in the vehicle purchase. This can help you qualify for lower rates.

If you only have a few thousand saved up, using it as a down payment on a more affordable used car is better than putting zero down on a newer model. Shop within your budget and according to the down payment amount you have available.


Down Payment Assistance Programs

Some nonprofit organizations and even dealerships themselves offer down payment assistance programs for those with poor credit. These provide grants or low-interest loans to cover your down payment, allowing you to get approved for a car loan with little savings of your own.

Do some research online for organizations offering down payment assistance in your local area. Or speak with dealerships about any special programs they offer – just be wary of ones that seem too good to be true.


Repayment and Ownership

When taking out a bad credit auto loan, it’s important to understand the repayment terms and your responsibilities as a car owner.


Overview of Repayment Terms

Bad credit loans typically have higher interest rates and shorter repayment terms than loans for borrowers with good credit. Expect repayment periods of 2-4 years. You’ll make a set monthly payment, often bi-weekly or weekly, consisting of principal and interest charges. The lender will provide a full breakdown of the payment schedule.

Make sure you can afford the monthly payments before signing the loan agreement. Missing or late payments will further damage your credit score. Work with the lender if you experience financial hardship to avoid delinquency or default.


Total Cost of Loan

Factor in the total interest charges over the life of the loan to understand the true cost of borrowing. A $10,000 loan at 15% interest over 3 years will cost around $3,000 in interest. Always opt for the shortest term possible to minimize interest fees.

You may also be required to purchase GAP insurance to cover the difference between the car’s depreciated value and the remaining loan balance if it is totaled in an accident.


Steps for Responsible Ownership

Owning a car comes with ongoing costs and responsibilities:


  • Maintain insurance – collision and comprehensive coverage
  • Registration renewal and fees
  • Ongoing maintenance and repairs
  • Gas, parking, tolls


Make a budget to account for these expenses. Keep the car well-maintained and don’t miss any scheduled service appointments. Follow all traffic laws and drive safely.

As you make consistent on-time payments, your credit score should gradually improve. This will open up better loan options when it’s time to replace your vehicle.


Alternatives to Bad Credit Car Loans

While a bad credit car loan can help you get driving again, it may not be the right choice for everyone. Here are some alternatives to consider before taking on an auto loan with a high interest rate:


Public Transportation

Using public transit like buses, subways, and trains is always an option instead of owning a vehicle. Public transportation can save you money on car payments, fuel, insurance, and maintenance. The downside is that it may be less convenient and limit your freedom to travel flexibly.


Car Sharing Programs

Car sharing through services like Turo and Getaround allow you to rent vehicles as-needed without taking out a loan. You can enjoy the perks of having a car when you need one, with more flexibility. However, this lacks the convenience of having your own vehicle.


Improve Your Credit First

You may want to spend 6-12 months improving your credit score through on-time payments and other credit building tactics. Once your score is higher, you can qualify for an auto loan with better terms. While this delays purchasing a car, it saves you money long-term.


Buy an Inexpensive Used Car with Cash

Instead of financing a vehicle, you may want to buy a reliable used car with cash upfront. While it limits your options, paying cash means no monthly payments and interest charges. Just be sure to have a mechanic inspect any used car before purchasing.

Weighing all your options can help determine if moving forward with a bad credit auto loan makes the most financial sense for your situation. But in some cases, alternative transportation methods may be a better choice.


Expert Tips for Success

Getting approved for a bad credit car loan in Regina can seem daunting, but with some expert advice, you can navigate the process successfully. Here are some tips from finance experts for getting the best bad credit car loan in Regina:


  • Check your credit report – Review your credit report from all three bureaus to understand where you stand. Look for any errors that you can dispute to improve your score.
  • Save for a down payment – Lenders view a down payment as a sign of financial commitment. Save enough for a 10-20% down payment if possible.
  • Know your budget – Figure out the monthly payment you can realistically afford based on your income and expenses. Don’t stretch your budget too thin.
  • Research lenders – Compare offers from online lenders, banks, credit unions, and dealerships. Look for the best rates and loan terms.
  • Consider a co-signer – Adding a co-signer with good credit can help you qualify and get better rates. Make sure they understand the risk.
  • Know your credit score – Different lenders use varying credit score thresholds. Having an idea of your score can help guide your options.
  • Clean up your credit – Pay down balances, dispute errors, and avoid new inquiries to maximize your chances.
  • Shop pre-approved – Being pre-approved gives you negotiating leverage when finding the right vehicle.


Following expert advice can make getting a bad credit car loan much smoother. Stay persistent and don’t get discouraged – you can get approved with some smart planning.



When exploring bad credit car loans in Regina, it’s important to carefully research your options and have a solid plan in place. Taking out an auto loan when you have poor credit is a big financial decision that shouldn’t be taken lightly.

To recap, make sure you understand the pros and cons of bad credit auto financing, including higher interest rates and stricter loan terms. Shop around with multiple lenders to find the best loan offers for your situation. Work on improving your credit score over time so you can potentially refinance for better rates down the road.

Having a reliable vehicle is often necessary to get to work, school, appointments, and complete daily errands. While bad credit can make financing more challenging, it is possible to get approved if you find the right lender and program. Do your homework, understand all the fine print, and have a budget and repayment plan mapped out before signing anything.

With some diligence and effort, those with poor credit in Regina can successfully secure the transportation they need through a bad credit auto loan. Just make sure to enter the process with eyes wide open and a commitment to turning your credit situation around over time.

Get Approved Today

See if you qualify in under 60 seconds

Regina Bad Credit Car Loan Questions

Getting approved for an auto loan with bad credit in Regina can seem challenging, but it is possible. Lenders like credit unions, banks, and subprime lenders may approve those with credit scores as low as 500. The interest rate may be higher compared to someone with excellent credit, often between 15-25%. Providing a larger down payment, having a co-signer with good credit, or showing regular on-time bill payments can help improve your chances. Review your credit report for errors, pay down debts, and research lenders willing to work with bad credit to better your approval odds.

Most lenders prefer a minimum credit score of 650-700 for used car loans in Regina. However, those with scores in the 500s can still qualify with some lenders that specialize in bad credit, though interest rates may be higher. Used car interest rates often range from 6-25% depending on credit score. Those with no credit history can also get approved by applying with a qualified co-signer or by establishing alternative credit references.

Making consistent and timely payments is essential for credit rebuilding when paying off a Regina car loan. Pay at least the minimum (though paying more is better) before the due date each month. Keep credit card balances low, don’t apply for new loans until your score increases, and review your credit reports regularly for errors. Limit credit inquiries by only applying for necessary new accounts. As positive payment history builds over the loan term, your score can increase significantly.

Bad credit car loan interest rates in Regina generally range between 15-25%, though may be higher or lower depending on your specific credit situation. Those with very poor credit scores below 500 may pay up to 30% APR or require a co-signer to qualify for more reasonable rates. New auto loans typically have lower interest rates than used, and providing a larger down payment can lead to more favorable rates. Compare options from banks, credit unions, and specialized subprime lenders.

When applying for bad credit auto financing in Regina, come prepared with your driver’s license, proof of income (recent pay stubs or tax returns), residence verification, car insurance quotes, a down payment, references (if you have no credit history), and possibly the vehicle’s VIN number. Bringing the required documents speeds up the application and approval process. Let the lender know upfront you have bad credit but are working toward improvement.


Yes, getting pre-approved before shopping for a used car is wise with bad credit. It shows Regina dealers you are a serious buyer and can streamline negotiating and paperwork. Compare loan rates and terms from multiple lenders first, including banks, credit unions, and specialized subprime auto lenders. This allows time to improve your credit score too. Then shop dealers with confidence knowing your budget and loan options.


Tips to boost your bad credit auto loan approval odds in Regina include minimizing credit applications, paying down debts to lower utilization ratios, avoiding taking on new loans until after approval, having a down payment ready, finding a qualified co-signer if needed, verifying there are no mistakes on your credit reports, establishing alternative credit if you have no credit history, obtaining multiple pre-approvals, and writing a letter of explanation regarding your credit situation.

To get the lowest interest rate, have a down payment of 20% or $2,000-$3,000 ready, whichever is higher. Ask a family member with excellent credit to co-sign the loan. Pay down credit card balances to lower your debt-to-income ratio. Avoid applying for other loans recently. Shop rates from multiple lenders, including banks, credit unions, and subprime specialists. Consider taking a shorter loan term so the principal is paid down faster. Supply references to demonstrate you pay bills responsibly.


Most Regina subprime lenders require a minimum monthly gross income of around $1,500 – $2,000 to receive bad credit auto financing approval. This allows an appropriate debt-to-income ratio based on the requested loan amount and your existing obligations. Stable full-time employment for at least 1-2 years in a reliable industry is also preferred. Part-time, self-employment, disability assistance, or other incomes may also qualify depending on the lender.

If your budget allows, a new car loan can be easier to qualify for versus used with bad credit in Regina, since used vehicle loans present more risk. New car loans tend to have lower interest rates too. However, you can still find quality used cars ideal for rebuilding credit. Ensure used vehicles undergo a thorough inspection before purchasing, and avoid high-mileage models if possible.

A trusted co-signer with good credit can improve the chances of qualifying for a Regina auto loan if you have bad credit. Their positive payment history and income gets factored in by the lender and demonstrates additional security you will repay responsibly. Just be sure the co-signer understands they are equally liable for payments if you default. Have a plan to eventually remove the co-signer after improving your credit score.

The maximum car loan term for approval with bad credit around Regina is typically 84 months, or 7 years. Loan terms up to 96 months may be possible in some cases too. The longer the repayment period, the lower the monthly payment – but the more interest you pay overall, leaving you underwater on your loan for longer. Opt for the shortest comfortable term you can afford each month instead.


Yes, offering a down payment of 10-20% on a used vehicle, or up to $3,000-$4,000, can greatly help your chances of securing bad credit auto financing in Regina. The more money down, the lower the amount financed, so the loan risk is reduced for the lender. Save up over several months by cutting expenses if needed. Ask if the lender matches down payments.


The best places to apply for used auto financing despite bad credit in Regina include banks, credit unions, specialized subprime lenders like CARCAN, Canada Drives, Canada Auto Finance, and Capital One Auto Finance. Getting pre-approved from several providers ensures you find the most competitive interest rates and loan terms. Also try dealer financing, but the rate may be higher.

Some Regina and Saskatchewan credit unions known for approving auto loans for applicants with bad credit include Affinity Credit Union, SaskCentral, Innovation Credit Union, Synergy Credit Union, Cornerstone Credit Union, and Concentra Financial. Credit union auto loan rates for bad credit normally range between 10-25% based on individual factors. Building your relationship over years through multiple credit union products can help improve approval odds.


Most lenders in Regina prefer you wait 12-24 months after a consumer proposal before applying for auto financing. This allows for enough time to reestablish positive payment behavior. During that period, make sure to make all debt and bill payments on time, keep credit card balances low, verify your credit reports are accurate, and avoid taking on additional debt obligations whenever possible. This will reflect creditworthiness.

Many franchised and independent dealerships around Regina work with subprime lenders and have experience helping those with bad credit or no credit get approved for used car loans. Some options with helpful financing staff include: Capital GMC, RMP Chevrolet, Bennett Dunlop Ford, Taylor Toyota, Titan Automotive, Siman Auto Sales, Crestview Chrysler, and more. Expand your options further through Canada Drives and CARCAN.

Get Approved Today

See if you qualify in under 60 seconds