A consumer proposal can help you regain control of your finances, but it will leave an indelible mark on your credit report for the next seven years. We want to make things a little easier by outlining out to get an Ayr car loan after a consumer proposal.
Your creditors had to settle their debt for pennies on the dollar; these creditors would have left derogatory remarks on your credit report, which will send your credit score spiralling downward.
How to rebuild your credit score, from the ground up
Your credit score will be very low, and stay that way until you start working on it.
You need to sign up with TransUnion and Equifax, to find out your current credit score; this is your starting point.
Now that you know your credit score, it is time to start building a positive track record.
No creditor will approve new credit with the consumer proposal on your credit report; you will need to sign up with services like the Koho Credit Builder program.
You will pay $7 per month for six months; so long as you make your payments on time, your credit score is going to rise.
It would be smart to sign up with a secured credit card from banks like Capital One, Home Trust, and other similar organizations.
These secured credit cards report to the major credit reporting agencies, so you will start to see your credit score rise after a few months.
It may take 6-12 months before your credit score gets in the range where you qualify for a fairly competitive car loan, but you are on the right path.
Do you have a defined car-buying budget?
This is a question that must be addressed before you start shopping for a car in Ayr.
While going through the consumer proposal, you would have participated in budgeting training sessions, so you should have a budget in place.
You should allocate no more than forty percent (40%) of your gross income towards servicing your total debt, including a new car loan.
The average car loan in Canada is well over $500, so you need to take that into consideration when shopping for a car.
Since you are having credit challenges, you will not be able to get a loan for a brand new car, so you need to shift your focus on used cars.
There are many great used cars to choose from, so you should have no problems finding something that will suit your needs.
Where to find a competitive car loan after a consumer proposal
You will not be able to find a lender willing to give you a decent car loan on your own.
What you will need to do is work with a dealership in your area.
The dealership has access to lenders throughout Canada who will give you a car loan; the dealership will take their time understanding your situation and then select the lender that is best suited for your situation.
Now that you know how to secure an Ayr car loan after a consumer proposal, you should reach out to the dealership today and go out for some test drives!
Click here to get approved for an Ayr car loan after a consumer proposal today! we have a team of credit specialists ready to help you find a vehicle suited to your needs and will work with you no matter your credit score.
For any questions or concerns, please don’t hesitate to contact us here!