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Finding a Caledonia Car Loan after Bankruptcy

Finding a Caledonia Car Loan after Bankruptcy

Bankruptcy was intended to give people a fresh start, but anyone who has gone through bankruptcy will tell you it is an experience they never want to go through again!


The pandemic has exposed vulnerabilities in the Canadian economy, where the average Canadian is $200 away from financial catastrophe. This highlights that anyone can go bankrupt, and it does not take much for it to happen.


With car prices tracking at all-time highs, no one is able to buy a new car with the cash they have saved.


The only way you can buy a new car is by taking out an auto loan, but post-bankruptcy, getting a car loan can seem impossible.


Lenders are not going to issue a new loan to someone who was just discharged from bankruptcy; the risk is too high, especially since the borrower has not established a good repayment track record.


Tips on how to rebuild your credit after bankruptcy


Once you have received the discharge from bankruptcy, it is time to build a positive repayment track record.


Fortunately, there are services like the Koho credit rebuilding service, which gives you the opportunity to raise your credit score by making monthly payments of $7 per month.


If you make the payments on time, it will show you have a positive installment loan repayment history.


Installment loans are just one type of credit facility; you could also sign up for a secured credit card from CapitalOne or HomeTrust; by having a mix of credit products, your credit score will start to rise.


How stable are your finances?


During the bankruptcy, you had to limit yourself to cash-only transactions.


Your bankruptcy trustee would have required you to attend two credit counseling courses that should have covered budgeting.


You need to prepare a budget, so you always know how much cash is coming in versus how much cash is going out.


Most Canadians are using debt to finance their lifestyle, and that is how they get into financial trouble.


The average car payment is $500 a month for most Canadians, so you need to have at least that much room in your budget.


Making your monthly payment is just one element; you also need to include the running costs that are associated with owning a car.


Where to get a Caledonia Car Loan after Bankruptcy


You have taken some important steps on your credit recovery journey but need a car today.


The good news is there are lenders that cater to borrowers who recently went through a bankruptcy, but these lenders cannot be found online.


You must work with a dealership in your area that works with these lenders to access these lenders; you can identify them by terms like “no credit refused.”


These dealerships are going to spend time learning about your personal circumstances, so they will know which lender is the best one for your needs.


The interest rate you will pay on these car loans will be high because of the recent bankruptcy, but you will be able to refinance the loan in a few months when your credit score improves.


We’d love to help you find an affordable Caledonia car loan after bankruptcy. Simply fill in the form below and we’ll get back to you ASAP or see our selection of new and used cars at our Brantford dealership. 


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