Your car broke down, your credit score is under 600, and you need $15,000 — here's what to do

If your credit score is still a work in progress, you may not qualify for a traditional loan through a bank or credit union. It doesn't mean you're out of options, but you may need to get creative with your approach.

Here’s a framework of how you can do that.

What is considered a bad credit score?

Your credit score is a three-digit number between 300 and 900 that tells lenders how risky it is to lend you money. In Canada, your score is calculated by our two primary credit bureaus — Equifax and TransUnion — based on factors such as your payment history, credit utilization and credit history length.

Generally speaking, a score of 660 or higher is considered good. Once you drop below that, your options start to narrow. Below 560, you're typically in "poor credit" territory, though exact cutoffs vary by lender. If your score is below the mid-600s, you may need to consider "bad credit" financing options, but, as I'll cover below, that's still very doable.

If you're not sure where you stand, you can check your credit score for free through platforms like Borrowell (2), which provides your Equifax score, Credit Karma (3), which uses TransUnion, or directly through Equifax (4).

Can you qualify for a car loan with a bad credit score?

The short answer is that yes, you can. Bad credit happens, and while you won't qualify for the lowest interest rate or the most favourable loan terms, it is possible to get a car loan in Canada even if you have bad credit or have declared bankruptcy in the past.

Where things get tricky, however, is with the cost.

As of February 2026, the average auto loan interest rate in Canada was around 6.7%, according to Statistics Canada (5). But while borrowers with strong credit might see rates in the 5%-7.5% range, bad credit auto loans can climb into the high teens or even approach 30%. On a $30,000 car loan over 5 years, that difference in interest could be over $20,000.

Structurally, bad credit car loans work the same way as regular car loans: you borrow, make your monthly payments and pay down the principal and interest. The main difference is who you are borrowing from (specialty or non-traditional lenders vs. banks and credit unions) and how much it will cost you.

Find the right loan in under 2 minutes. Connect with Canada’s leading auto finance experts and get a personalized rate without affecting your credit score.

Where to find bad credit car loans

If your bank turns you down, it's not a dead end; it just means you'll need to broaden your search. The biggest mistake people make here is walking into a dealership and accepting the first financing offer they're given. You want to compare multiple lenders and platforms to find the best available rates and terms.

With that in mind, here are a few online loan platforms worth looking at:

Loans Canada

Launched in 2012, Loans Canada is a Canadian-owned loan comparison platform that connects borrowers with multiple lenders, including lenders willing to work with buyers who have low credit scores.

Potential borrowers can search for loans on new or used cars, with interest rates ranging from 9.99% to 35% APR, loan amounts from $250 to $50,000, and loan terms of up to 60 months.

Note that the loan process isn't entirely online. After you submit your application, matched lenders will call you with offers. Loans Canada is available in all Canadian provinces.

My Auto Approval

As a loan comparison site, My Auto Approval is on a mission to create the easiest place to buy a vehicle, no matter where you live in Canada.

While you may not be familiar with the brand, My Auto Approval has been in the auto loan business since 2012 — and helped millions of Canadians find auto financing. As part of the Loans Canada brand, My Auto Approval works with a national network and a simple process to help you get pre-approved, locate a dealership and find a car that fits your budget and lifestyle.

Learn how easy it is: Select the type of vehicle you want to buy, set your monthly budget — from $0 to $500 or more — provide a few additional details such as estimated credit score, income, address and contact details, and licensed loan providers will contact you with your best auto loan options.

LoanConnect

LoanConnect is a lending search platform that offers car loans for Canadians with bad credit, including those going through a consumer proposal or bankruptcy. It directs potential borrowers to a network of lenders with interest rates starting at 4.99% APR, based on personal credit, and loan terms from 72 to 84 months.

According to LoanConnect, potential borrowers may receive pre-approvals for up to $60,000 in as little as 60 seconds. However, these limits may not apply to auto loans, since the company offers many types of personal loans. While the best loan terms are reserved for borrowers with the strongest credit profiles, LoanConnect does work with lenders who will consider those with a history of bankruptcy or a consumer proposal.

Don't overpay for your next vehicle. Check out our top-rated lenders to secure a low-interest rate regardless of your credit score.

CarLoans411

CarLoans411 is a car-loan matching service designed for Canadians with poor credit or no credit, including newcomers and those with previous bankruptcies. It offers a quick application process, doesn't require a SIN to pre-qualify and connects you with its dealership partners across Canada. The application process is free and takes less than two minutes to complete online.

Once you submit, a CarLoans411 representative will connect you with a suitable partner within their dealership network. According to CarLoans41, almost all applicants are approved for some form of auto financing, provided they meet the minimum income requirement. Down payments are not required, but interest rates will vary depending on an applicant's financial profile. CarLoans 411 is available in all Canadian provinces.

Knowledge is power, but savings are better. Now that you understand the basics, take the next step and see how much you can save on your monthly payments.

Car Loans Canada

Car Loans Canada can service people with most credit backgrounds. When you complete an application, it's submitted to local dealers and lenders for both new and used vehicles. It advertises Interest rates starting at 8.99% for used vehicles, but the rate you qualify for will depend on your credit profile and could be much higher. Applicants must hold a valid driver's license. Car Loans Canada is available to residents of all Canadian provinces except Quebec.

Getting approved for a bad credit car loan in Canada

Getting approved for a bad credit car loan is about more than just your credit score. Your lender will consider many factors to determine whether you can repay your loan, including:

Down payment: If you can put forward 10% to 20% of the vehicle's purchase price as a down payment, it shows lenders that you're financially prepared. A larger down payment also reduces your monthly payment and the total interest you'll pay over the lifespan of the loan.

Employment history: Your lender will want to confirm you have reliable employment, either through recent pay stubs or a written proof of employment.