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Finding a Decent Car Loan in Port Credit after Bankruptcy

Finding a Decent Car Loan in Port Credit after Bankruptcy

If you need a car loan after bankruptcy in Port Credit, you are in luck. We will give you some insight into how car loans work and what steps you need to take to get a new vehicle.


There are thousands of Canadians that go bankrupt every year. The pandemic has just shown a light to just how vulnerable the average consumer is during these uncertain economic times.


Importance of rebuilding your credit


The moment you are officially discharged from bankruptcy in Port Credit, you need to start rebuilding your credit. Officially you do not have any debts on your credit report, but the bankruptcy will stay on your credit report for six years.


So, the only thing on your report is the bankruptcy until you start rebuilding a positive track record.


You can apply for a secured credit card; these cards are being offered by banks like Capital One.


These secured cards report to the credit bureaus just like normal cards, but the difference is the money you deposit acts as the credit limit, so if you deposit $1,000, then your credit limit would be $1,000.


It would be advantageous to open a few of these secured cards with a variety of different banks to increase the total number of active tradelines to at least three.


After you have these accounts in place, it could take up to thirty days before the new accounts appear on your credit report.


There are credit builder loans that will help you raise your credit score faster, so be sure to add them to your credit mix.


Working out your Port Credit car buying budget


While you are working on improving your credit score, you should take the opportunity to work out your budget.


Your debts should be minimal since the bankruptcy would have wiped out all of your outstanding liabilities.


However, car prices are on the high side, so you need to budget $500 minimum for a car payment, and that doesn’t include maintenance and insurance.


All of your debts, including the new Port Credit car loan, cannot exceed 40% of your gross monthly income; if the amount exceeds that level, then your loan will be declined.


Therefore, you should consider adding side-line income to help increase the maximum loan you can secure.


How to get your car loan approved after going bankrupt


There is a resource available to help you get a car loan after filing for bankruptcy; it is via your local car dealership. You will need to select the dealerships that focus primarily on second chance financing; most mainstream dealerships are not equipped to handle these complicated files.


The dealership will take its time to understand both you and the circumstances of your bankruptcy.


When the analysis has been completed, the dealership is going to let you know which lender is best suited for you. Then, the dealership is able to show you the quickest and easiest way to rebuild your credit.


Now that you know how to buy a new car after bankruptcy, you should head over to the dealership today and go for some test drives.


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


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