880 Walkers Line, Burlington, ON, L7N 2G2
My Garage

Financing a Car Loan after Bankruptcy in Lincoln

Financing a Car Loan after Bankruptcy in Lincoln

Financing a car loan after bankruptcy can be a challenging time but nothing is impossible when you put your mind to it. It won’t be as easy as it was before but with the right approach and the right expertise helping you, anything is possible!


Our Lincoln auto loans team outlines how to get an auto loan after bankruptcy and what you need to know before you apply.


Car loan after bankruptcy in Lincoln


The main thing you need to know is that getting an auto loan after bankruptcy isn’t easy but it is very definitely possible. The financial landscape has changed immeasurably in recent years and this is one area of life where things have actually changed in our favour.


Where once bankruptcy was the end for borrowing, now it’s just a bump in the road. With the right approach and some hard work on your part, you can access finance again.


You will need to wait until the proceedings have completed though. Once discharged, you can access credit once more.


Some lenders will work with people still undergoing bankruptcy proceedings but that will involve your trustee. It is possible to borrow but it much more complicated.


Recovering after bankruptcy


Once your bankruptcy has been discharged, you can begin rebuilding. However, you got into the situation, there is always a way out and that begins as soon as it’s discharged.


Get a new bank account and credit card


Depending on the situation, you may need, or want to, to open a new bank account. Use this account for everything going forward.


You should also apply for a credit card. We will use this to help rebuild your credit score. If you need to apply for a secured credit card, do so. If you can qualify for a standard card, get one of those instead.


Use the card for everyday purchases, set up automatic payments to cover the minimum each month but aim to pay off the card in full each month.


While we’re encouraging you to use credit again, we’re doing it responsibly. Using the card for purchases you would make anyway will keep things under control.


Setting up automatic payments will help rebuild your payment history and rebuild your credit score and paying the card off in full avoids paying much interest.


Use the card for 6-12 months until your credit score has improved.


Auto loan or credit builder loan


Once you have rebuilt some credit, you can apply for a bad credit car loan or credit builder loan. Again, we’re not encouraging you to get into debt, this is an optional step.


If you were planning on getting a car anyway, now would be a good time. If you’re not, keep using the credit card and increasing your score.


Bad credit car loans are more expensive than standard loans but they are a way of accessing credit and boosting your credit score with more payment history. We would only recommend using one if you can afford it but otherwise, using credit helps build credit!


If you need help or advice on anything to do with auto loans in Lincoln, contact Car Nation Canada today, we can help!


Thanks for reading. Be sure to connect with us on Facebook, Twitter, Instagram, or LinkedIn to stay up to date on our latest great articles!

Categories: News

Tags: ,