388 King George Rd, Brantford, ON, N3T 5L8
My Garage

Can I Get A Car Loan After Bankruptcy In Kitchener?

Can I Get A Car Loan After Bankruptcy In Kitchener?

Can you get a car loan after filing for bankruptcy in Kitchener? The short answer is yes you can. But, as that would make for a very short blog post, we’ll go into a little more detail.

 

Bankruptcy is not something to go through lightly but many people don’t have the choice. Often, through no fault of their own, Canadians find themselves in an impossible situation where bankruptcy is the only way out.

 

It’s a tough situation to find yourself in but it’s one that you can get out of.

 

What happens after bankruptcy?

 

The main thing that happens after bankruptcy is that you begin the rebuilding process.

 

Your credit score will take a huge hit but your creditors will be off your back, you should have no more stress around debt and all those worries and concerns you had over debt should be a thing of the past.

 

We recommend you do the following after bankruptcy in Kitchener.

 

Check your credit report

 

Once the bankruptcy has been discharged, or completed, check your credit report to see what’s going on. Make sure everything is accurate and that your debts are marked as settled.

 

If you spot mistakes, use the following forms to have your report corrected, Equifax dispute resolution and TransUnion dispute resolution.

 

Get a credit card

 

Your options will initially be limited but there are secured credit cards or other options out there. Find the cheapest credit card you can qualify for and get one. Use it for daily expenses and set up automatic payments to pay the minimum every month.

 

Never settle for paying the minimum though. That’s just to make sure you don’t miss a payment. Aim to settle the card in full each month.

 

Over time, using and settling the card and making monthly payments will begin improving your credit score.

 

Consider a credit builder loan or other credit

 

Once you have serviced one credit card effectively for a few months, consider getting another or a credit builder loan. Many lenders like to see at least two forms of credit and kept in good standing. Your credit card is one, we need another.

 

You could go for another credit card or use another form of borrowing. It’s entirely up to you and purely optional. You could wait for a few more months and just get a bad credit car loan instead.

 

Consider a Kitchener car loan

 

After around a year after bankruptcy and regular use of a credit card, you should now be able to qualify for a competitive car loan. You will still likely be in bad credit car loan territory but after a year of managing debt and never missing a payment, lenders should be far more willing to lend to you.

 

You will likely need to use a specialist lender but our Kitchener car loan team can help with that.

 

When you’re ready for a car lease or loan, get in touch with the Kitchener auto loan experts at Northway Ford for great deals on auto finance.

 

Be sure to connect with us on Facebook, Twitter, Instagram, or LinkedIn to stay up to date on our latest great articles!

Categories: Car Loan

Tags: ,