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

How to get a Burford Car Loan after Bankruptcy

How to get a Burford Car Loan after Bankruptcy

If you were recently discharged from bankruptcy and need a new car, the good news is you can get a Burford car loan, but there is some work that you must do before you can drive home with a new vehicle.

 

Our Burford auto loans team are going to show you what steps must be taken; rest assured, there are options available, but you must stick with us to the end.

 

Starting with a clean slate (sort of)

 

Bankruptcy will give you a clean slate. You are no longer legally obliged to pay your creditors, but the bankruptcy will be on your credit report for the next seven (7) years.

 

Prospective lenders will see that when they do a hard pull on your credit report, so you need to start building a positive credit history.

 

How to build a positive credit score

 

Since you have no active credit, you are starting from scratch. Sign up for a secured credit card with companies like Home Trust and Capital One to start building credit.

 

These companies offer secured credit cards that work just like conventional credit cards, but you need to deposit money into the account.

 

This deposit is your “credit limit,” so the more money you deposit, the higher your limit.

 

Everything about the secured credit card works like a conventional card; you will receive an invoice every month that needs to be paid.

 

Pay the invoice on time and in full; after a few months, your credit score will begin to increase.

 

Working out your car-buying budget

 

Do you know how much per month you can afford to put towards a car loan?

 

The average car loan is well over $500 per month. If you do not have your budget worked out, now would be a great time to work on it.

 

The monthly car payment is just one thing you need to budget for; there is also maintenance, insurance, and gas. Inflation has driven up the cost of gas in Canada to roughly $2 per litre, so you will need to budget extra for that.

 

Prospective lenders will not approve a loan if your debt to income is more than 40% of your gross income.

 

If you made $5,000 per month, then the maximum you could service is $2,000. Since you recently went through a bankruptcy, your total debts must be considerably low.

 

Where to find Burford car loans after bankruptcy

 

After bankruptcy, most lenders will not be willing to give you a second chance.

 

So your best and frankly only viable option is going to a car dealership. The dealerships have helped a large number of Canadians and will be able to help you.

 

You will need to schedule a meeting with the dealership as soon as possible. The in-house credit experts will show you what steps need to be taken in order to boost your credit score, so you will have the best interest rates in the future.

 

Now that you know how to get a car loan after bankruptcy, you should follow our advice and contact the dealerships today.

 

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

 

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! 

 

    Contact Us

    By submitting this information, you are accepting that it may be collected, used and disclosed as described in our privacy policy.
     

    Categories: News

    Tags: ,