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How to find a Great Car Loan after Bankruptcy [2022]

How to find a Great Car Loan after Bankruptcy [2022]

If you are forced to go through bankruptcy, it can be a truly challenging and liberating experience at the same time. While it will be a profound transition from living on credit to solely on cash, you can get a fresh financial start when you come out the other side.


One of the biggest challenges you will experience is trying to find a great car loan after bankruptcy.


The law currently prevents anyone from taking on new debts if they are not discharged from bankruptcy, so you must wait until your trustee gives you the official discharge documents.


Credit rebuilding road-map


After you have the discharge documents, do your level best to follow our credit rebuilding roadmap. If you follow it, your credit score will start to rise rapidly, and you will have more opportunities in front of you.


Apply for a credit rebuilder loan. There are companies that offer these loans.


You pay a predetermined amount every month, and once the loan has been repaid, you get your funds back minus the service fees.


The benefit of using these credit rebuilder loans is your credit score will improve, plus you can look forward to getting the cash at the end of the agreement.


You should also consider signing up for a secured credit card. You deposit money into these special accounts, so you are guaranteed approval. The benefit of these facilities is you are able to start building a positive payment history.


The bankruptcy will stay on your credit report for the next seven (7) years, and nothing will change that, but using these secured facilities will help you on your path to financial redemption.


You are not alone when it comes to rebuilding your credit; over 53% of Canadians are $200 away from going bankrupt! That is a very dangerous situation to be in, so the fact you already went through bankruptcy and had a fresh start means you are ahead of the curve.


Buying a used car


The odds of being approved for a new car loan are virtually nil. There is a limited number of cars available in the market, and the average price is nearly fifty thousand dollars.


You will be able to purchase a good quality used car, and once you’ve rebuilt your credit, qualify for a new car loan. Having a car in Canada is necessary, so having a used car is a great stepping stone.


Where to find a Great Car Loan after Bankruptcy


You should look for dealerships in your community that specialize in second-chance financing. These dealerships advertise whether they specialize in helping people with all types of credit on their website; if you are not sure, call.


The dealership will be able to get you approved for a car loan and show you how to refinance the loan to a lower rate once your credit score reaches 680.


It will take a considerable effort on your part, but you will be able to buy a car after bankruptcy, so why not begin taking these positive steps today? You will be happy you made an effort.


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


We’d love to help you find the perfect car loan. Simply fill in the form below and we’ll get back to you ASAP! 


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