Get Auto Loan after Consumer Proposal
When you find it difficult to manage your debt, you ask an expert for sound financial advice. He/she lets you know that the best option is to opt for a consumer proposal, rather than to file for bankruptcy.
A consumer proposal allows you to consolidate all your debt, to make it easier and more manageable to pay on a regular basis. Canadians are opting to use this strategy, as it gives them the opportunity to rebuild credit.
Consumer proposal tends to bring down your credit score, as it is an indicator of your inability to repay your debt. Even if you pay off all your credit, a consumer proposal will remain in your history for a couple of years. As a result, taking an auto loan becomes challenging, as no bank wants to take the risk of giving you credit.
However, you will be wondering, whether it is possible to take an auto loan, as you want to purchase a vehicle to solve all your transportation problems. Fortunately, there are several tips you can use to increase the chances of getting an auto loan after consumer proposal:
Decrease your debt-to-income ratio
You need to establish is that you have the financial ability to repay all your existing debt. If you don’t have a job with a steady income, find one so that it becomes easier to make the monthly payments on time.
Find a lender who works with bad credit consumers
Once you take the time and effort to bring down the debt-to-income ratio, you can now start approaching financial institutions. However, avoid going to banks, as they are most likely to turn down your loan application. Instead, you should get in touch with lenders who specialize in bad credit consumers, as they are ready to give you credit.
While you are looking for lenders, make sure you compare them and pick the best of the lot. Don’t rush while making this decision, as you don’t want to find yourself in tricky financial situations.
With these two tips, it becomes easy to get an auto loan, despite the consumer proposal. Remember, the purpose of taking credit is to rebuild your score, so that you can raise your financial status from the ashes and take it to new heights!