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What To Do After Bankruptcy In Acton

What To Do After Bankruptcy In Acton

Filing for bankruptcy is an extreme measure but not the end of the world. It’s a wiping of the slate and while nobody wants to be in the position, it isn’t terminal. Yes, it will mean working hard to rebuild but you definitely have a chance to rebuild.

 

Our Acton auto finance team outlines the steps needed to recover from bankruptcy.

 

First steps after bankruptcy

 

If you have been struggling with debt for a while, your first feeling after filing will likely be relief. No more weight of debt, no more creditors chasing you for payment and no more red bills landing on your mat.

 

That feeling of relief will last a little while so make the most of it.

 

Once you’re discharged from bankruptcy, the rebuilding can begin.

 

Check your credit report

 

It probably won’t make comfortable reading but you should first check your credit report. Make sure everything has been recorded correctly and nobody made any mistakes while updating it.

 

Don’t pay too much attention to your credit score right now as we’ll work on that over the coming months.

 

Just make sure your report is accurate, that it reflects your current situation and that all previous lenders have done their bit.

 

Get a secured credit card or credit builder card

 

Depending on your situation, now would be a good idea to apply for either a secured credit card or a credit builder card.

 

A secured credit card requires a security deposit equal to the credit limit of the card. It then works like a standard card, only with higher interest and fees.

 

A credit builder card doesn’t require a security deposit but often come with lower credit limits and higher interest and fees.

 

Choose whichever is best for your situation and use it for everyday expenses like gas, groceries and other purchases.

 

There is only one rule here. Treat the card like cash. Only spend what you can afford and make sure everything is paid off in full at the end of the month. That way, you should avoid the worst of the interest fees.

 

Bad credit auto loan in Acton

 

If you need a car to get to work, you can access auto loans as soon as the bankruptcy has been discharged. Bad credit auto loans cost more than standard loans but make cash available if you need it.

 

As long as you qualify, you can borrow. Bad credit auto loans look at affordability more than credit scores so as long as you have sufficient income, you should be able to borrow.

 

Once your bankruptcy has been discharged for a year or two and you have been using a credit card successfully, you should begin seeing your credit score rise. Once you hit 650 or so, standard credit cards and auto loans should start becoming available.

 

We don’t want to encourage you to borrow if you cannot afford it but we do want you to know auto finance is there should you need it!

 

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

 

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Categories: Auto Loan

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