What Is Second Financing and Third Chance Credit?            

As the name suggests, the principle behind second or third chance credit is to offer people who have previously had credit difficulties an opportunity to buy a pre-owned vehicle. Since we still need a vehicle and it is often impossible to acquire that vehicle by making a cash purchase, some financial institutions are ready to offer financing solutions at rates that are somewhat higher in order to facilitate the purchase of a vehicle in spite of previous credit problems.

What is the difference between 2nd & 3rd Chance Financing?

  • A second chance loan is a type of loan intended for borrowers with a poor credit history, who would most likely be unable to qualify for traditional financing. A second chance loan generally charges a significantly higher interest rate than would be available to borrowers who are considered less of a credit risk.

  • 3rd chance financing or commonly called house financing is usually offered by private investors. 3rd chance financing or house financing offers the possibility to finance a car at interest rates that are comparable to those of 2nd chance financing. The credit file is very much less important in a 3rd chance financing.

Do You Have Many Customers Who Take Second or Third Chance Credit Loan?

Currently, about 55 percent of the population need to call upon a specialized type of credit. In other words, buyers should know that if they do need to look into a second or third chance credit loan, they certainly are not the only ones. Sometimes, this type of loan is necessary in order to rebuild your credit.

Is It Possible to Rebuild Our Credit Score with Second and Third Chance Credit?

Yes, and in fact it is sometimes the only way. Of course, it won't be enough to simply pay off our car loan. We must also make sure we respect our other engagements (cell phone, credit card, and mortgage, for example).

By doing so, we are showing that we are able to meet our commitments and over time, financial institutions will be ready to grant us a loan at a favourable rate. Often people will find that the financing terms are less advantageous, and they will think that they are better to wait, but until they show that they can meet their financial obligations, they won't have access to better financing terms. It is by maintaining our credit and using it properly that we improve our loan terms.

For more information on second and third chance credit financing solutions offered at Bargain Auto Centre, and how these financing plans can help you restore your credit, contact us today!


Here at Bargain Auto Centre, we understand that bad credit doesn't mean that you are a bad person. We understand that there are many reasons why people can have a less the perfect credit score like

- Sudden loss of a job
- Divorce
- Medical bills
...and even a loss of a family member.

Here at Bargain Auto Centre, we offer a 99% Approval Rating. All we need is 2 paystubs, your driver's licence and you can be on your way to driving!!!

So start rebuilding your credit with Bargain Auto Centre today. We have a large selection of premium used vehicles to choose from and approvals are usually done within the same day. Feel free to call our finance department at 780-447-1264 or fill out our secured online form below to start your credit application today!

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Main: (780) 447-1264
Sales: (780) 447-1262

11141 156 St NW, Edmonton, AB T5M 1X9