Car loan tips for Canadians who were just discharged from bankruptcy

Car loan tips for Canadians who were just discharged from bankruptcy

Posted by on May 23, 2022 - Archived under Uncategorized

Were you recently discharged from bankruptcy and need a car? The bankruptcy laws in Canada were enacted to give citizens a second or third chance should they fall onto hard financial times.


During the period of insolvency, you were forced to rely on cash, but now that you have been discharged, it is time to start rebuilding your credit.


We will show you how to get a car loan, but it would be smart to follow these credit rebuilding strategies; they will help you save money throughout the remainder of your life.


Credit rebuilding 101


The bankruptcy would have removed your legal obligation to repay your creditors, they would have charged off your debt, and this negative remark will stay on your credit report for seven years.


Fortunately, there are products like the Koho credit rebuilder loan, which gives you the ability to improve your credit score.


With this facility, you pay seven dollars (7$) every month for six months; these payments are reported to TransUnion and Equifax; whenever you make your payment on time, your credit history will begin to show a track record of positive payments.


Your payment history is the biggest single credit score influencer; the longer you have a positive track record, the higher your score.


Along with the Koho credit rebuilding facility, you should sign up for a secured credit card. These secured cards add to your mix of credit products, which is an important component of your credit score. Having both installment and revolving credit accounts will help improve your credit score.


Budgeting for your new car


While you are waiting for your credit score to climb, you should review your budget to figure out how much cash of a monthly car payment you can afford.


You should have a considerable amount of room in your budget for a new car since the bankruptcy wiped out all of your payments.


You may be tempted to max out your car-buying budget, but do your best to resist that temptation. It took you quite some time to overcome your financial hardships, and the last thing you want to do is go back into major debt.


As a rule, try to keep your payments less than thirty-five percent of your gross income, and you should be fine.


Where to get a car loan in Canada after bankruptcy


If you were thinking about applying online for a car loan, you should reconsider. Sure, the Internet is an ideal place to shop for goods and services; it was a lifesaver during the pandemic.


However, when it comes to securing a car loan or any other financial service, there is no substitute for meeting in person.


You should make it a priority to visit your local car dealership and discuss your loan options. The dealership has assisted other Canadians who, just like you, went through bankruptcy.


By going through the dealership, you are all but guaranteed to get approved for a car loan, and the dealership will have vehicles in their inventory that you could take for a test drive today.


Click here to get approved for your next great new car loan in Canada online today! we have a team of credit specialists ready to help you find a car 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! 


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