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How to buy an electric car after completing a consumer proposal

How to buy an electric car after completing a consumer proposal

Consumer proposals, generally speaking, are more advantageous than bankruptcy because they will only hurt your credit score for up to 4 years, while bankruptcy can hurt your score for up to 7 years.

When you go through a consumer proposal, you will retain the services of a bankruptcy trustee.

This person will talk to all of your creditors and try to get them to lower the total amount of money you owe and give you more time to pay it back.

Since these creditors have to wait longer and get less money than they were supposed to, they will write bad things about you on your credit report.

This isn't a personal attack; it's just something that happens when you file a consumer proposal.

How to get back on your feet after a customer proposal

You can follow some easy-to-understand steps to get back on your feet after a consumer proposal.

For example, you must wait until the proposal is over before taking on additional debt. This is a law that you can't get around.

Once your insolvency trustee gives you the go-ahead, you should sign up for a secured credit card.

HomeTrust offers this facility and a credit builder program from Koho. Both TransUnion and Equifax will get a report every month from these secured credit facilities. If you pay these facilities on time, it will help your credit score and give you a good track record of paying back debts.

It could take anywhere from three to six months before this effort starts to pay off, but if you follow this advice, your credit score is almost certain to go up.

Figuring out how much you can spend on a new electric car

You must work out how much you can and are willing to pay each month for a new electric car.

While the amount you pay each month is important, you should also think about how long the loan will last. The longer it takes to pay off, the more interest you will have to pay in the long run.

In Canada, the average length of a car loan is about 5 years, but the term of the loan is impacted by your credit score, the interest rate, and how much you are borrowing.

If you don't have a budget, it can be hard to know what you can and can't afford. Try to set aside extra money for gas; with gas prices going through the roof, you'll be glad there was money set aside to cover these extra costs.

Where to get approved for an electric car loan after a consumer proposal

In theory, you could try to get a loan from an online lender, but this is not a good idea. In this case, you should contact car dealerships in your area that have experience helping people with bad credit get approved for car loans.

The dealership will know about all of the lenders in Canada, including the ones whose terms are best for people with bad credit.

These dealerships can negotiate on your behalf and turn a possible "no" into a firm "yes," so why not call a local dealership today and get things started.

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Categories: EV motoring

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