Subprime Car Loan Lending

Subprime Car Loans
The term “subprime” can have a negative connotation, unfairly so in most cases. The term simply describes the fact that lenders don’t regard the borrower as the perfect credit-candidate, nothing more.
Subprime lending is perfectly reasonable and safe in most cases. Our recession was caused by irresponsible subprime lending, not subprime lending itself. It’s a small but important distinction.
To complicate things slightly, each lender has their own idea of what perfect means, so it’s actually quite difficult to be anything other than subprime. Only if you have a spotless credit record, with lots of positive history can you hope for a standard loan these days, so don’t think of them as negative.
If you can afford the repayments on a car loan while managing the rest of your outgoings effectively, there is no reason why you cannot have that new car you’re looking for. You just have to find a lender willing to offer that loan.
As a point of reference, many lenders consider a credit score of less than 620 to be subprime territory. Anyone with less than that will have to work a little harder to get credit, but it’s far from impossible.
There are Canadian banks who specialize in bad credit car loans and subprime lending. They understand that some of what’s happening around us isn’t entirely our fault and sometimes people need a break.
Nelio Viana, Assistant Credit Manager
NewRoads Credit | 1-877-273-1880