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Car Loan After Bankruptcy In Hamilton

Car Loan After Bankruptcy In Hamilton

People can find themselves in all kinds of situations for all kinds of reasons. Often, those reasons are not of your own making and you’re just a victim of circumstance. Bankruptcy is just one of those circumstances.


But can you get a Hamilton car loan after bankruptcy?


Yes you can!


It isn’t always easy but if you work with professionals like our Hamilton car loan team, you could be driving away in your new car in no time!


Bankruptcy and car loans


There is one constant with financing a car loan after bankruptcy. The requirement for patience.


If you have just been made bankrupt, it may take a little while before a lender will consider you a good risk. You may have to create a few months of payment history and show your situation has improved significantly before they will lend.


Once you have everything in order, many of the lenders our Hamilton car loan team works with will consider your application.


Setting expectations


A bankruptcy will remain on your credit file for a while so the more you can do to paint a picture of financial health, the better.


That means:


  • Saving for a down payment – The more of a down payment you can put down, the more confident a lender will be. A down payment lowers the risk of the loan as the lender will get at least some money back if you default.
  • Pay off any debt – If you have any debt not included in the bankruptcy proceedings, pay that off as soon as possible. Not only do you reduce your debt ratio, it should also help build a positive payment history.
  • Repair your credit score – Use a credit builder credit card, pay off any outstanding debts and do what you can to begin the repair process.


Work with Hamilton car loan experts


While the bankruptcy is on your credit file, you will be regarded as a higher risk by lenders. That means working with car loan specialists to find lenders willing to work with you.


We have a pool of responsible lenders who are always willing to look past the credit score to get to the real story. If you can demonstrate that you’re a good risk, that you can afford the loan and can pay it back in full, you should have no trouble getting a car loan.


It will be at a higher rate than standard loans though. This is to address the perceived extra risk you present as a borrower. It’s nothing personal. It is just down to the situation.


The good news is that with a year or two of a bad credit car loan or other solution, you should have repaired your credit score enough to be able to access cheaper loans.


After that, the car loan world is yours to explore however you like!


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


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