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Car Loans After Bankruptcy in Ontario: A Second Chance

Car Loans After Bankruptcy in Ontario: A Second Chance

car loan after bankruptcy

 

In the past, bankruptcy was considered a mortal sin, and anyone who went bankrupt somehow failed as an adult. Thankfully, that is no longer the case; bankruptcy laws in Canada have evolved with the times, and bankruptcy can give you a second chance to lead a better-quality life. This also makes finding car loans after bankruptcy in Ontario easier!

 

Why Car Loans After Bankruptcy in Ontario Can Be Hard

 

If you have enough cash on hand to buy a car outright, then you don’t have to worry about securing financing.

 

Frankly speaking, the average Canadian would be hard-pressed to come up with $1,000 to pay for an unplanned expense without going further into debt, so most of us will need financing if we want to buy a car.

 

 

The first thing we need to find out is when you were discharged from bankruptcy.

 

You cannot take on any forms of new debt until your insolvency trustee has provided you with an official discharge; this is a document that states you are no longer in a state of insolvency.

 

Rebuilding your Credit after being discharged from bankruptcy

 

There are some important steps you must take in order to rebuild your Credit.

 

2021 Auto Loan Rates. Source: CarFinder

 

While going through the bankruptcy process, you had to get by solely on cash, but in Canada, everyone relies on Credit to get by.

 

Whether it is applying for an apartment or car loans after bankruptcy in Ontario; without decent Credit, most opportunities will be beyond your grasp.

 

The first step is establishing a baseline by signing up for free access to Equifax and TransUnion; once you have access to your credit reports, you can start laying the groundwork for rebuilding your Credit.

 

Since no creditor is going to give you Credit until they are confident you can handle the responsibility, you will need to sign up for specialized products like the credit rebuilder loan being offered by Koho.

 

This facility will give you one active tradeline on your credit report, but you need additional tradelines.

 

Consider signing up for a secured credit card from Capital One. These secured credit cards offer guaranteed approval, you simply deposit funds into an account, and this is your credit limit going forward.

 

 

Unlike a prepaid credit card, with a secured credit card, every month, you will receive a statement, and so long as you make your payments on time, your credit score will improve.

 

Where to Find Car Loans in Canada Post-bankruptcy

 

While you are working on improving your credit score, you still need to address your need for a car today.

 

You can get approved for a car loan, and there are lenders that cater to consumers like you who have credit issues, but you will not be able to access these lenders on your own.

 

What you need to do is contact a local car dealership and work with them.

 

These dealerships have well-established relationships with these lenders and will be able to get you approved for a car loan today; you just need to make the first move and contact the dealership now.

 

If you need help or advice on anything to do with electric vehicles, contact Car Nation Canada and get pre-approved today, we can help!

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