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

How to Find Car Loans After Bankruptcy in Flamborough

How to Find Car Loans After Bankruptcy in Flamborough

Qualifying for car loans after bankruptcy isn’t as difficult as you might think. It’s certainly much easier now than at any time before. That’s especially true when you work with our team!

 

Our Flamborough car loan team outlines the steps required to qualify for a car loan after bankruptcy.

 

Flamborough Car Loans after Bankruptcy

 

It has been a long time since bankruptcy was the end of borrowing in Canada. After the crash of 2008, the entire financial system changed and became much more aware of the nuances involved in personal finance.

 

Bankruptcy went from being terminal in terms of borrowing to something to be overcome just like bad credit.

 

That’s not to say it’s quick or easy, because it isn’t. Overcoming it takes time and patience but it can be done.

 

Here’s how.

 

Get your affairs in order

 

You can apply for a car loan while you’re in bankruptcy proceedings but it’s easier to wait until it has been discharged. If you apply while you’re in the middle of things, the lender will want to hear from your trustee. If you wait until it’s discharged, they won’t.

 

The bankruptcy will be on your credit report for 6 years but as long as everything you do from the point of bankruptcy points toward recovery and being fiscally responsible, you should be able to access credit.

 

Rebuild your credit score

 

Use a credit card, secured or otherwise, to help begin rebuilding your credit score. Set up automatic payments to cover the minimum and aim to pay off the balance in full each month.

 

Set up automatic payments for all bills and all outgoings so you never miss a payment.

 

Where possible, select phone companies, landlords and utilities that make entries on your credit report. These will help build a positive picture.

 

Keep credit use to a minimum

 

Aside from the credit card, try to avoid borrowing anything while you’re building credit and especially when preparing for a car loan.

 

We want you to keep credit utilization low so keep an eye on spending and make sure you don’t start getting into debt again.

 

Save for a down payment

 

The larger the down payment you can put down, the more likely you are to be accepted for a car loan.

 

Down payments insulate the lender from loss as they know they can repossess and sell the car if you default. If any potential depreciation or loss is covered by your down payment, their risk is lower, so they are more likely to agree the loan.

 

Work with a company that cares

 

When you are ready for that car loan, select a company that cares whether you succeed or not and who looks past your credit history at the person.

 

We work tirelessly to help people from all backgrounds, in all kinds of situations and would be happy to help you too.

 

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

 

Thanks for reading. 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: ,