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How to get a Car Loan after a Consumer Proposal

How to get a Car Loan after a Consumer Proposal

Canadians who recently completed a consumer proposal and need a new car loan will face an uphill battle. Our goal is to show you how to handle the complex world of Hamilton car loans and come out on top.

 

Before we proceed, you need to be out of the consumer proposal. Otherwise, legally, you cannot take on any new debts, which include car loans.

 

Rebuilding your credit from scratch

 

After the consumer proposal has been completed, your credit score will take a major hit.

 

All of your debts would have been wiped out but with negative comments inside your credit report.

 

If you applied for a Hamilton car loan or any type of credit without following these tips, the odds of being approved are virtually zero.

 

There are options available; you should sign up for a secured credit card from organizations like Capital One.

 

With a secured credit card, you will be able to rebuild your credit score.

 

These cards are reported to TransUnion and Equifax on a monthly basis. You just need to pay your debts on time and never carry a balance.

 

There are instalment loans you can apply for where you pay a small amount, and over the course of 6 months, your credit score will bounce back.

 

Of course, this will take time, but your score is going to improve dramatically.

 

How to buy a car while waiting for your credit score to rebound

 

While you wait for your credit score to recover, you still need a reliable vehicle to get around.

 

There are options available, but you should take a quick look at your budget. The average car payment can easily set you back $500 per month.

 

If you do not have enough room in your current budget to cover that cost, you will need to increase your income, reduce your debts, or both.

 

When you have completed this step, you can start looking for a suitable vehicle. You will start looking for used vehicles that are going to meet your needs.

 

The used car market is experiencing massive demand; there is a shortage of used cars in the market, so you will need to pay a higher price to get a vehicle.

 

Finding a lender that is willing to work with you

 

You are making excellent progress, but it is time to start looking for a lender that will give you a car loan today.

 

Look for dealerships in your area that specialize in providing car loans to people like you.

 

When you meet with the dealership, they will be able to advise you on how to rebuild your credit and still get a car today. In addition, the dealership will have vehicles for you to test drive and take home today, which is great news.

 

You should contact your dealership today now that you know how to get a car loan after a consumer proposal. The longer you wait to get a car loan, the more expensive it will be for you in the future.

We’d love to help you find the perfect car loan. Simply fill in the form below and we’ll get back to you ASAP or see our selection of used cars at our Burlington dealership. 

 

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    Categories: Auto Loan

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