How to Get a Car Loan on ODSP or Disability

How to Get a Car Loan on ODSP or Disability

March 28, 2024

People with disabilities often need car loans to afford essential transportation. However, getting approved for a car loan, especially at a good rate, can be tough for those on disability benefits like the Ontario Disability Support Program (ODSP).

Canadians who receive disability benefits are often seen as having low incomes. Getting a car loan on ODSP might seem challenging, but it's not impossible. To increase your chances of getting a car loan while on ODSP, it's important to understand the eligibility criteria and explore options that fit within these guidelines. 

If you're getting disability support, there are a few steps you can take to improve your chances of getting the green light for a car loan.


How to get approved for a car loan on ODSP?


1. Improve your credit score

Improving your credit score can significantly improve your chances of getting approved for a car loan. 

Simple actions like paying bills on time, double-checking your credit report for accuracy, and using tools like a credit builder credit card can all help elevate your score. You can also set up automatic payments to ensure a flawless payment history.

Since your credit score plays a crucial role in your car loan approval, it's wise to do everything possible to enhance it. 


Read: How to Improve Your Credit Score


2. Clear your existing debts

If you've got a bunch of existing debt, try to pay it off before applying for a car loan. 

When you go for an auto loan, many lenders check your credit, looking at your payment history and current debts. If they see too much debt, they might think you'll struggle to repay the loan and either reject your application or approve it with a high interest rate.

So, before you apply for a car loan, focus on paying off the priciest debt first and reducing your overall debt amount, as it’ll make you look more responsible and creditworthy and improve your chances of getting approved.


3. Have another income source

Having a steady income from disability support when applying for a loan can make approval tricky. But if you also have another source of income, like a part-time job, your chances of getting approved for a car loan go up. This extra income can be taken directly by creditors if needed. The longer you've had the part-time job and the more money it brings in, the better your chances of loan approval.


4. Find the right lender

Before applying for a car loan, it's essential to do thorough research. Just like any loan application, each time you apply, it can affect your credit score. To minimize the impact, shop around in advance. 

We at Approval Genie have access to a wide range of lenders ready to assist people in various situations, including those seeking car loans on ODSP or with a disability. We can help you get ready for pre-approval, increase your chances of approval, and guide you through the application process when you're ready.


5. Find a co-signer

If you can't borrow enough money or improve your credit score to get the vehicle you want, think about finding a co-signer. This could be a family member or a close friend who agrees to step in and pay if you can't.

But make sure your co-signer has a good credit score and can afford the loan. If they do, they might be able to help you out.

If you're getting help from ODSP or a similar disability assistance program, we can help you find the right resources for your car loan. No matter if your credit is good or bad, whether you have a co-signer or not, Approval Genie is dedicated to helping you get the vehicle you need. Apply today, and you'll be hitting the road in no time!