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How to get a car loan in Guelph after going bankrupt

How to get a car loan in Guelph after going bankrupt

A car loan can be obtained by Ontarians who have received their bankruptcy discharge and are in need of one, but there are a few crucial measures that must be taken, as our Guelph car loans team explains.

We must first determine whether you were formally released from bankruptcy. Do not proceed until you have received an official discharge, as this is required by law before you may take on any new debts.

Credit rebuilding tips and strategies

Your credit rating is bad, and since you filed for bankruptcy, your creditors are no longer receiving the funds they were promised.

The bankruptcy will remain on your credit report for seven years even though you are receiving a fresh start.

You must take proactive steps to raise your credit score, starting with registering for credit restoration programs like those provided by Koho.

It will take some time to rebuild your credit, but you must begin. It's important to pace yourself when restoring your credit.

If you have a few open tradelines, such as secured credit cards and credit rebuilding products, you should see an improvement over the next 30 to 60 days, but your credit score won't jump to 700 overnight.

Examining your funds more closely after bankruptcy

We've talked about how crucial it is to work on improving your credit score; now it's time to focus on your finances. Do you have a set spending limit?

Making a budget is one of the things you would have learned during the bankruptcy process.

You must have a budget in place that specifies how much money you may allocate to a car payment.

The typical automobile payment in Canada is about $500, but that is only a rough estimate that does not account for the expenses associated with owning a car.

Most Canadian lenders would not grant a loan if the debt-to-income ratio exceeds 40%; since bankruptcy would have eliminated the majority of your debts, you shouldn't have any trouble making the auto payment.

You must account for an emergency fund as well as the car payment in your budget.

Given the high cost of housing in Ontario, you should have an emergency fund set up to cover any changes in your expenses.

After bankruptcy, where can I get a car loan in Guelph?

Although the offers on such websites may appear alluring, getting a car loan after filing for bankruptcy is not a good idea.

The best place to get post-bankruptcy auto loans is from a nearby vehicle dealership that specializes in obtaining this kind of financing.

You can't find lenders who will offer you a second opportunity without the assistance of your nearby vehicle dealership.

Therefore, you should get in touch with your dealership right away to start going over your loan alternatives so that you can secure a car loan after bankruptcy.

Pick up the phone and call the dealership as soon as possible since the sooner you contact the dealership, the happier you will be.

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

Categories: Car Loan

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