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How to Find a Car Loan after Bankruptcy in Caledonia

How to Find a Car Loan after Bankruptcy in Caledonia

Anyone could experience bankruptcy, the average Canadians owes $1.73 for every $1 they earn! All it takes is to miss a few pay checks and you are already behind the 8-ball and missing a few more pay checks and your credit score suffers….

 

And before long you are meeting with a bankruptcy trustee.

 

The number of bankruptcies do fluctuate depending on where you live but one thing they share in common is no one expected they would be in that situation.

 

While insolvent, you cannot take on any new debt and are living solely on cash which is tough when you want to rent an apartment when you need a credit score apply for certain jobs.

 

The fact you went bankrupt will be a matter of public record.

 

But the good news is you went through the process and came out a strong person!

 

However, now that you need to buy a car, it can seem like a daunting task to find lenders who will give you a second chance. So, we'll show you how to find a car loan after bankruptcy in Caledonia

 

Taking a progressive approach towards rebuilding your credit

 

Credit is the oxygen that fuels our economy and you will need to rebuild your credit score. Start by applying for a secured credit card at your local bank or with Capital One.

 

These secured cards are guaranteed approval, you will need to deposit cash which is used as collateral for your account.

 

While this is a “secured” credit card, it is very real and not the same as a pre-paid credit card.

 

Budgeting for a new car

 

Something that you would have learned during the bankruptcy process is budgeting.

 

How much room do you have in your budget for a car payment?

 

A common mistake that people make is to fall in love with a car before they have determined what they can afford. Once a person becomes emotionally attached to the car, it can be difficult to go with something that works for your budget.

 

You should factor about 20-30% of your total income for debts, since you are essentially debt free you should have no major issues finding room in your budget. Just make sure you also include the maintenance costs that come with owning a car.

 

Finding a lender who gives 2nd chances

 

There is a quick and simple way to find lenders that offer second chances, you cannot access these lenders by yourself though.

 

Identify car dealerships in your area that advertise “all credit accepted”, “2nd chance credit” or something with a similar meaning. These dealerships would have identified which lender/s will give you a fair shake.

 

The dealership will be able to get you a loan today, but they can show you how to rebuild your credit so in 1-2 years, you can qualify for prime interest rate car loans.

 

You will be able to start a new life after bankruptcy and the first major milestone is being able to buy a car.  Just be sure to pick a car you love, there is a shortage of cars available in the market.

 

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

 

We’d love to help you find the perfect car loan after bankruptcy in Caledonia. Simply fill in the form below and we’ll get back to you ASAP! 

 

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    Categories: Auto Loan

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