Car Loans

Welcome to our car loans broker website! We understand that finding the right car loan can be a daunting task, but that's where FatCatLoans come in. Whether you're buying a new or used vehicle, we're here to guide you through the car loan process, from start to finish.

With years of experience and a vast network of lenders, we're confident that we can help you find the perfect car loan that fits your budget and needs.

Why Apply Through Us?

  • Competitive interest rates
  • Flexible loan terms
  • Quick and easy application process
  • Access a network of lenders to find the best loan option for you
  • High approval rate, even for those with less than perfect credit
  • Our website is secure and ensures the privacy of your personal information

Top Questions...

How do I apply for a car loan?

Obtaining a car loan is a fairly simple process, but getting approved can be challenging! If you purchase a car from a dealership or an online retailer, you can usually fill out a financing application at the same time. However, if you buy from a private seller, you may need to do more work and apply for a loan from your bank.

Here are three straightforward steps to follow when applying for a car loan:

Step 1: Complete the lender's auto loan application, providing all necessary personal and financial information.

Step 2: Provide any additional documentation requested by the lender, such as assessment notices, income and expense records, other debt obligations, and information about the car you want to buy.

Step 3: Wait for the lender's approval, which may take anywhere from a few days to a few weeks, depending on the lender.

What is the interest rate on a car loan?

The lender's prime rate, the borrower's credit score, and the vehicle attached to the loan all determine the interest rate charged by the lender. Each payment you make is split between interest and principal. Although your payment remains the same, the breakdown between the interest and principal portions varies each month. Generally, interest is higher at the beginning of the loan and decreases over the loan term.

What exactly is a pre-approved auto loan?

A pre-approved auto loan is a type of car loan that has been approved in advance. This means that before you begin shopping for a car, you can complete a brief pre-approval application to determine the amount of car loan you qualify for. This can assist you in budgeting and saving time while looking for cars. Additionally, this type of credit check does not impact your credit score.

What are the requirements for obtaining a car loan in Canada?

Although the specific loan requirements may vary slightly among lenders, there are some basic requirements for obtaining a car loan in Canada that are common across most lenders. These requirements include:

  • Government-issued identification
  • Proof of residency
  • Documentation of income
  • Proof of automobile insurance
  • Being of legal age in your province or territory
  • Agreeing to a credit check

How does one go about repaying a car loan?

Repaying a car loan involves following a predetermined repayment schedule, with payments due on a specific date. Typically, payments are due once a month, although this may vary depending on the lender. It's important to make all payments on time and in full to maintain a good credit score, as payment history is a significant factor in determining creditworthiness.

Most lenders prefer pre-authorized payments, which are automatically debited from your bank account on the due date. If you wish, you can also make larger payments than the required amount. This can help to shorten the loan term and reduce the amount of interest paid.

What kind of credit score is required to purchase a car?

Typically, a minimum credit score of 650 is required to qualify for an auto loan, although this may vary depending on the lender's criteria. It's important to note that there is no universal minimum credit score requirement for car loans. While most lenders do take your credit score and report into account, they also consider other factors like your income when determining your eligibility for a car loan.

Can I get a car loan even though I have bad credit?

It is possible to obtain a car loan even with bad credit. However, there are several things you can do to improve your chances of approval:

  • Consider finding a co-signer with good credit
  • Provide a larger down payment
  • Look for a lender, retailer or dealership that specializes in working with customers with bad credit
  • Demonstrate that you have a steady and sufficient income, for example through pay stubs or bank statements.
  • It's also recommended to work on improving your credit before applying for a car loan, and consider increasing your down payment or finding a co-signer with good credit.

It is possible to cancel a car loan early?

Yes, it is possible to cancel a car loan early by paying off the remaining balance before the end of the loan term. However, it's important to note that some lenders may charge prepayment penalties for paying off the loan early, so it's important to read the loan agreement carefully.

If you decide to cancel a car loan early, you can either make a lump-sum payment or refinance the loan with another lender for better terms. Additionally, selling the car and using the proceeds to pay off the loan balance is another option, but if the sale proceeds do not cover the outstanding loan balance, you will have to pay the difference out of pocket. This is referred to as being "upside down" or having negative equity on your car loan.

Are there any consequences for paying off a car loan early?

Paying off a car loan early may result in prepayment penalties, which lenders usually impose to recover some of the lost interest due to the loan's early termination. It's important to review the loan agreement's terms to determine whether a prepayment penalty applies and, if so, the penalty amount before making early payments.

Is it beneficial to pay off a car loan early?

Paying off a car loan early can have both positive and negative impacts on your credit score. By closing an account on your credit report and stopping your monthly payments, your credit mix and payment history may be affected, potentially lowering your credit score.

However, if you consistently made on-time and full payments and your car loan is one of your only accounts on your credit report, it may be beneficial to keep it open. If you do decide to pay off your car loan early, it can improve your debt-to-income ratio, which is positive for your credit score in the long term. Ultimately, the decision to pay off a car loan early should be based on your individual financial situation and credit goals.

Is it possible to transfer your car loan to someone else?

It is possible to transfer your car loan to another person, such as a family member or friend, but the process may not be straightforward. Before transferring the loan, you will need to negotiate a new car loan contract with your lender, and the new borrower will need to meet all of the lender's requirements, including a credit check.

It is important to note that not all lenders allow loan transfers, especially traditional lending institutions such as banks and credit unions. Additionally, transferring a car with negative equity may not be feasible, so it is advisable to check with your lender before attempting to transfer the loan.

Can I sell my car before I pay off my loan?

Yes, it is possible to sell a car that still has a loan on it. However, you must ensure that the sale proceeds are enough to cover the outstanding loan balance. Otherwise, you'll have negative equity, which means you'll have to pay the difference out of pocket to pay off the loan.

If you default on the loan, the lender has the right to repossess the vehicle to cover the outstanding loan balance. It's important to contact your lender to obtain a pay-out amount, which is the amount you owe on the loan, before selling your car.

Is it possible to refinance a car loan?

Yes, it is possible to refinance a car loan. Refinancing is a good option if you are unable to pay off your car loan entirely. Typically, you can refinance your car loan after some time has passed. As a general rule, the minimum time that must elapse before refinancing is 90 days, but it varies by lender. Refinancing can help you get a lower interest rate or monthly payments, which can save you money over the life of the loan.

Is it possible to refinance a car loan with negative equity?

Refinancing a car loan with negative equity can be challenging since many lenders are hesitant to take on the added risk. However, it is possible to refinance a car loan with negative equity if you can increase your equity before applying for the refinance. Here are some tips to help you increase your equity:

  • Make extra payments towards your loan to decrease your principal balance
  • Delay refinancing until your car’s value increases
  • Consider trading in your car for a less expensive model to reduce the amount of negative equity
  • Find a co-signer with strong credit to help you secure a better refinancing rate

Can I get my car loan extended?

Extending your car loan term can help reduce your monthly payments, especially if you're going through a tight financial situation. Refinancing is one way to extend the loan term and lower your monthly payments. It's important to keep in mind that extending the loan term also means paying more interest over a longer period. Additionally, towards the end of the loan term, you may end up owing more for the car than its actual worth.


At FatCatLoans, we offer a seamless car buying experience by providing access to our partner’s online showroom featuring hundreds of certified vehicles. Our collaboration with prime and non-prime lenders allows us to assist car buyers in various credit situations.

Apply for pre-approval for your next car, truck, or SUV today by filling out our free online pre-approval application in just three minutes. With FatCatLoans, you can shop for your dream vehicle with confidence, knowing exactly what you're eligible for.