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How to get a Car Loan after going Bankrupt in Beamsville

How to get a Car Loan after going Bankrupt in Beamsville

Are you looking for a car loan after going bankrupt in Beamsville? Finding a lender who will give you a second chance is tough, especially in these challenging times.


There are lenders that will offer you a car loan, but you cannot find them on your own. Our Beamsville car loans team are going to show you how to access them.


The importance of rebuilding your credit post-bankruptcy


Once you have received your official discharge from bankruptcy, you must start rebuilding your credit score.


While the bankruptcy has cancelled your debts, the actual bankruptcy will appear on your credit report for the next seven years, so you need to start building a positive credit history.


The challenge is finding lenders who will let you work on the actual rebuilding.


What you can do is sign up for secured cards from Capital One.


Everyone is guaranteed approval for these cards; however, you will need to deposit money that works as your credit limit.


This is not to be confused with a prepaid credit card. For example, if you deposit $1,000 into your secured card, then your available credit limit would be $1,000.


After you receive the card, you need to start using it and paying the invoice when it is due. Once you start making your payments on time, it will impact your credit score.


You should sign up with Credit Karma to track your credit report in real-time.


By staying on top of your credit report, you will never be caught off guard when applying for credit-related products.


Setting up a budget for your new car


During the bankruptcy process, you would have attended classes that teach budgeting. You will need to revise your current budget to allow room for the new car.


The average car loan in Canada is over $500 a month, so if you do not have enough room in your budget, you need to increase your income by working overtime or reducing your total debt.


Since your debts were mostly wiped out during the bankruptcy, there should be substantial room in your budget for the new car.


Where to get a Beamsville car loan after bankruptcy


You have followed our tips, and your credit score is starting to rebuild, but you need a car and need it soon.


In this situation, even though other lenders have turned you down in the past, you can get a car loan in Beamsville.


Reach out to dealerships in your area; they will be able to find lenders that are willing to offer you a car loan.


The interest rate being charged on these post-bankruptcy car loans is going to be higher than what you would pay if you had good credit, so you need to adjust your expectations.


By working with the dealership, you will have access to their credit experts, who can review your circumstances and show you how to boost your credit score in a matter of a few months.


Now that you know how to get a car loan after bankruptcy in Canada, head over to your local dealership and start the car buying process.


We’d love to help you find an affordable car loan after going bankrupt in Beamsville. 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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