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How to buy a car in Ohsweken after going through a consumer proposal

How to buy a car in Ohsweken after going through a consumer proposal

If you were part of a consumer proposal but have completed it, congratulations on going through one of the most challenging financial experiences a person can have!

A consumer proposal is a debt negotiation with creditors where a percentage of the total amount owed is forgiven or written off by the creditor.

These proposals are set up by licensed professionals and have a detrimental impact on your credit score. The consumer proposal will stay on your credit report for up to 7 years but this does not mean you cannot buy a car.

Our Ohsweken auto loans team explain some of the steps you will need to take if you want to buy a car while trying to get your financial life back on track.

Re-establishing your credit

The process of re-establishing your credit after a consumer proposal may seem like a daunting task. Since your credit score has taken a dramatic hit, you will have challenges finding lenders willing to give you a chance.

One option worth considering is applying for a secured credit card, your approval is guaranteed because you are depositing funds that act as a surety against charges made on the credit card.

This is not a prepaid card as you will still receive a bill every month and will need to make regular payments.

You can sign up for apps like Credit Karma to keep track of your credit score and see where you stand as time passes.

Once your credit score begins to climb, it is time to contact your local dealership that specializes in helping people with credit challenges get approved for a car loan. These dealerships usually advertise “they work with all credit types” or something similar.

During your initial conversation with the dealership, they will explain what steps you must take to get your credit score to a high enough level to qualify for prime financing.

The great news is the dealership not only has the expertise to give you advice but also has a network of lenders that can approve your loan as soon as you qualify.

Income verification

While working on rebuilding your credit, the dealership will also give you insight into what documentation you must provide. Since the start of the pandemic, lenders want assurances that the prospective borrowers are going to have enough income to repay the loan.

If you are working a full-time job and don’t have any other forms of income then your latest payslips should be fine. A growing number of Canadians are now working more than one job, should you fall under that category then you will need to provide your income tax assessments and bank statements.

When you have followed all of the suggestions that we have outlined, you will be able to buy a new car after going through a consumer proposal. Just remember to reach out to a local car dealership as soon as possible to get a head start on your recovery!

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

Categories: Car Loan

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