Yes, it’s possible to obtain a car loan with a bad credit score. However, it might come with higher interest rates and stricter terms compared to loans for individuals with good credit.

Once you’ve submitted your application, pre-approval can take a few seconds or a few days, depending on the circumstances.

Applying for multiple loans over a few months can negatively impact your credit score. However, multiple loan inquiries within a specific period (typically 14-45 days) for the same purpose (auto financing) typically counts as a single inquiry, minimizing the impact. A pre-approval usually involves a hard credit check and lowers your credit score briefly, but it allows you to lock in a rate with a lender before signing any paperwork so you can shop around for a better deal.

Your credit may improve over time as your payment history is reported to the Canadian credit bureaus. However, since everyone’s credit scores react differently, you cannot predict when they will improve or how they will improve.  There are a number of factors that go into your credit score.   Obtaining an auto loan and making payments on time is the first step to rebuilding your credit.