If you read our blog post on Monday on getting an auto loan after foreclosure, you will know that no matter what your financial situation, you always have access to finance if you need it. It’s exactly the same for bankruptcy.
Our Kitchener auto loan team explains.
After the financial crash, the world of finance had some changing to do. Not only to prevent it happening again but also to put itself in a position to be able to help Canadians caught up in a situation not of their making.
One of those changes was to be more flexible in how it viewed particular situations.
Before the crash, people who had gone through bankruptcy would not have had access to auto loans or any borrowing at all. Now it’s possible to access most types of lending in the same way as everyone else.
Kitchener auto loans and bankruptcy
Accessing a Kitchener auto loan after bankruptcy works in the same way as everyone else. The interest you may pay will be different but the application process won’t be.
Checking your credit score
You’ll need to know your credit score so you have an idea of how much you could potentially borrow. While lenders won’t base their entire decision on your credit score, it will have a bearing on it.
Do what you can to raise your credit score
If you’re not in a hurry, do what you can to improve your credit score. That can be anything from correcting any errors, removing any old data, paying down any outstanding debts to using a credit card to help rebuild your payment history.
We appreciate that you may not have the luxury of time but anything you can do to improve your credit score or tidy up your credit history will work to your advantage.
Use a down payment
Down payments are very useful for having an auto loan application accepted. The more money you put down means the less you have to borrow.
It also gives the lender confidence that you’re putting your own money on the line as well as theirs. They like that. They also like the fact that their losses will be minimized if you use a large down payment.
Work with an auto loan expert in Kitchener
You can apply for specialist auto loans online but we don’t recommend it. While applications are simple, you have one chance to get it right and to frame your application in the most positive way possible.
Every auto loan application leaves a mark on your credit report and can ding your credit score temporarily. That means you want to get it right first time.
Which is where an auto loan specialist comes in. We can help you prepare your auto loan application, check through your paperwork and assess your chances of success. We can also get you preapproved before the actual loan application too!
For those of you who know that you have a challenging credit situation, please visit Dixie Auto Loans where we have a team of credit specialists ready to help you get approved for a car loan today!