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Financing a Car Loan after a Consumer Proposal in Niagara Falls

Financing a Car Loan after a Consumer Proposal in Niagara Falls

If you need a car loan after a consumer proposal in Niagara Falls, you may feel like there are no options available.


Most lenders will not give a car loan to someone who just went through a consumer proposal because of the perceived risks. But, our Niagara Falls car loans team are going to cover what steps you must take to get back on a solid financial footing and get the car loan you need to live a normal life.


When did you complete your consumer proposal?


The first thing we need to cover before taking a deeper dive is finding out when you completed your consumer proposal.


Suppose you were not discharged from the proposal legally. In that case, you cannot take on any new debts, so we are going to work on the premise that you have been discharged from the consumer proposal.


The importance of rebuilding your credit ASAP


Your credit score took a considerable beating due to the consumer proposal, which forced your creditors to take a substantial discount on the total debt outstanding.


This will stay on your credit report for seven years, so you need to work on rebuilding your credit score so you can get better financing terms in the future.


The initial step is signing up for a secured credit card from firms like Home Trust and Capital One.


These secured credit cards will help you start rebuilding your credit. They work just like a conventional credit card, but you need to deposit funds that work as your credit limit.


The more funds you deposit, the higher your credit limit.


As you use the secured credit card and repay it on time, your credit score will start to climb.


You should sign up for credit monitoring apps like Credit Karma so you always know your credit score in real-time.


Sorting out your budget for a newer vehicle


Since you have credit issues, you will not be able to qualify for a brand-new car loan in Niagara Falls.


Your best option is to buy a used car; there are some really great used cars out there to choose from.


Most Canadians spend around $500 per month on their car loan, so you must have that much available in your budget, but ideally, it should be closer to $1,000 for added peace of mind.


Where to find the best car loans after a consumer proposal


Suppose you want to find the best car loans in Niagara Falls after a consumer proposal.


In that case, you must reach out to car dealerships in your area that specialize in second-chance financing.


The dealership will review the particulars in your application and pick the lenders that are best suited for your needs.


Since the dealership already has a relationship with these lenders, they can negotiate the best terms on your behalf.


If you are serious about buying a new car, you must go through a dealership; they will help you every step of the way and show you how to repair your credit so the next car loan will be a prime-interest rate loan.



We’d love to help you find a car loan after a consumer proposal in Niagara Falls. 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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