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Buying a car when you are going through a consumer proposal

Buying a car when you are going through a consumer proposal

All Canadians, from coast to coast to coast, are under tremendous financial stress. If you can't pay your debts and need help, a consumer proposal could be a better choice than bankruptcy.

A consumer proposal can help you get your finances back on track, but there are some short-term and medium-term effects that you should be aware of. Fortunately, our Waterloo auto loans team are here to help.

How consumer proposals affect your credit score

The consumer proposal basically asks your creditors to forgive some of your debt and give you more time to pay back the rest than you were originally given.

Of course, this makes things very hard for the creditors, and they will tell both TransUnion and Equifax about it.

This negative status will stay on your credit report for up to seven years, which could make it more expensive for you to access new credit in the future.

Buying a new car with confidence means putting yourself in a good financial position

Even if you don't do anything to improve your credit score, you might still be able to get a new car loan in Waterloo.

However, you should definitely start taking steps to improve your credit score.

You never know when you'll need money, so having a good credit score will help save you money on loans.

Signing up for Credit Karma will let you know what your current credit score is and give you a place to start tracking your progress.

Once you have your credit report, you can sign up for services and programs such as Koho Credit Builder that help you rebuild your credit.

This service only costs $7 per month for the next six months, and it will report an active tradeline to both TransUnion and Equifax.

Your credit score will go up with these new tradelines, especially if you just recently got out of a consumer proposal.

While you're waiting for your credit score to start going up, you could look at your budget to see how much money you have for your new car.

How to make a budget when there is a lot of inflation

With inflation in Canada at a level that hasn't been seen in decades, you'll need to dig deep and look for ways to cut back on how much you spend each month.

With a consumer proposal, you should have a lot less debt, which means you have more money to pay for your new car.

Where to go after a consumer proposal to get a car loan approved

If you need a new car right away and can't wait for your credit score to improve, you can go to a local car dealership known for helping people with bad credit like you get the car they need.

They will have a large list of lenders they work with, so you shouldn't have any trouble getting approved. The dealership can also show you, based on your specific situation, how to improve your credit score. This is a service you can't get anywhere else.

Car prices are going up, so you should call your local dealership today to find out how much you can borrow for a new car. You have nothing to lose, so call the dealership today.

We will use all our skill and experience to deliver the lowest possible Waterloo auto loan rates, guaranteed. Contact Car Nation Canada Direct to learn how we can help.

Categories: Auto Loan

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