{"id":766827,"date":"2019-03-07T23:16:07","date_gmt":"2019-03-08T04:16:07","guid":{"rendered":"https:\/\/www.finder.com\/ca\/?p=766827"},"modified":"2026-01-16T17:52:01","modified_gmt":"2026-01-16T22:52:01","slug":"pre-approved-car-loan","status":"publish","type":"post","link":"https:\/\/www.finder.com\/ca\/car-loans\/pre-approved-car-loan","title":{"rendered":"How to get car loan pre-approval"},"content":{"rendered":"

Wouldn\u2019t it be nice if you could compare offers from multiple auto lenders without affecting your credit score? Car loan pre-approval lets you do just that. When you get pre-approved for a car loan in Canada, lenders do a quick, initial assessment to determine your credit-worthiness and loan eligibility.<\/p>

It\u2019s usually free, and you can get auto loan pre-approval before committing to buy a car.<\/p>

How to get pre-approved for a car loan in Canada<\/h3>

\"carWondering how car loan pre-approval works? Here\u2019s a quick breakdown of the process.<\/p>

  1. Find out your credit score.<\/strong> Get a free annual credit report from Canada\u2019s credit bureaus, Equifax or Transunion. Generally, you need a good credit score of 660+ to qualify for a car loan with competitive rates and terms, but there are lenders who offer auto loans for bad credit<\/a>.<\/li>
  2. Compare car loan providers.<\/strong>
    Shop around<\/a> for lenders that offer car loan pre-approval in Canada. Check interest rates, amounts, terms and eligibility requirements that work for you.<\/li>
  3. Apply for auto loan pre-approval.<\/strong>
    Apply for car loan pre-approval from each of the lenders you\u2019re interested in. You may have to provide basic personal and employment information, rent or mortgage figures and trade-in details, if applicable. Lenders may conduct a soft credit check. Unlike a hard check, this won\u2019t affect your credit.<\/li>
  4. Review pre-approval offers.<\/strong> It typically takes hours up to one business day to get pre-approved for a car loan. Compare the pre-approval offers you received, and choose one with favourable rate and terms. Remember that you can lower monthly payments with a long term, but your interest costs will be lower with a short term.<\/li>
  5. Complete a loan application process.<\/strong> Contact your chosen lender to complete the application process. You\u2019ll have to provide additional information and consent to a hard credit check, which will impact your credit score. This often takes one or two business days. Pre-approval does not guarantee final approval. If the full application process reveals any red flag, you might not get a loan.<\/li>
  6. Buy a car.<\/strong> Pre-approval often expires after 30 days (sometimes longer). Start hunting for your next vehicle, leveraging your loan eligibility to land a competitive price. When you\u2019re fully approved for auto financing, contact your seller to finalize the transaction and secure your new car.<\/li><\/ol>

    Compare lenders to get pre-approved for a car loan<\/h3>

    Many online lenders offer fast applications for pre-approved car loans without affecting your credit score. You might also be able to get auto loan pre-approval from a bank or credit union, but bad credit borrowers aren\u2019t likely to qualify and applying might hurt your credit score.<\/p>

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