Bad Credit Powersports Loans and You: Buying With a Low Credit Score

Do you have bad credit? Are you unsure what qualifies as bad credit in Canada or even what your current credit score is? The average credit score in Canada is around 650, though it varies slightly by province. If your score is on the lower side, you’re not alone. However, having company doesn’t necessarily make it easier to purchase your next boat, RV, ATV, motorcycle, or snowmobile. Read on to learn how to apply for bad credit powersports loans and discover your options for damaged credit financing.

What Is Considered a Bad Credit Score?

In Canada, credit scores range from 300 to 900. A score between 660 and 724 is considered good, 725 to 759 is very good, and scores above 760 are excellent. A score of 700 or higher gives you the best chance of being approved for loans with lower rates. On the other end, scores between 560 and 659 are classified as fair, while scores below 560 are poor. Both fair and poor credit scores are typically considered bad credit, which can make securing loan approval more challenging.

Strengthen Your Profile When Financing with Bad Credit

If your credit score isn’t in the good range, don’t worry—it’s not the only factor lenders consider. Building a strong overall profile can significantly improve your chances of getting approved. Here are some key factors that lenders assess:

1. Down Payment

Having a down payment is essential. Even if you can only save up 10% of the vehicle’s value, it’s better than nothing. Ideally, aim for 20% to demonstrate your ability to save and reduce the lender’s risk. A larger down payment benefits you as well, lowering your monthly payments and reducing the total interest paid over the loan term.

2. Employment History and Income Information

Lenders typically verify your employment and income by reviewing recent pay stubs. If pay stubs aren’t available, a written statement or verbal confirmation from your employer may suffice. Many lenders now use secure verification links to confirm payroll deposits directly, ensuring that your financial information remains protected.

3. Banking and Financial Information

Lenders may request several months of bank statements for your chequing and savings accounts. They’ll also want to know about your assets and other outstanding debts.

4. Practical Purchase

It’s important to choose a sensible vehicle within your budget. If you attempt to finance an expensive vehicle with a low credit score, lenders may be unwilling to approve the loan, and the high interest rates could be detrimental. Opt for a practical and affordable purchase. Once you’ve paid it off, you can use the equity as a down payment for a more luxurious vehicle—potentially at a better interest rate after improving your credit.

Refinancing Your Current Vehicle: Better Terms and Up to $30,000 Cashback

If you’re looking for better payment terms or want to break away from your current lender, refinancing can be a great option. You may even qualify for up to $30,000 cashback with low interest rates.

Consider a Cosigner

Another option for securing a loan with bad credit is using a cosigner—a friend or family member with a good credit score who agrees to share responsibility for the loan. This can help you qualify for better rates and terms while potentially improving both your credit scores through on-time payments.

Work with a Powersports Finance Specialist

Finding financing with bad credit can be frustrating, especially if your first application is denied. However, different lenders have varying requirements. Banks often have stricter credit criteria, whereas credit unions and finance specialists are generally more flexible.

We Are Your Powersports Finance Specialists

At Private Sale, we’re dedicated to helping you secure the powersports vehicle you need. We work with over 30 lenders to find the best financing options tailored to your situation, even if you have bad credit. Our credit repair loans reward you for making timely payments, helping you rebuild your credit while working towards full vehicle ownership. Don’t let bad or limited credit history keep you from your next adventure. Contact Private Sale today to learn more about your bad credit powersports loan options and get on the road to financial freedom!