You might think that after filing for bankruptcy, purchasing a car is out of the question as you have to wait for several years. Regardless of the reason which led to bankruptcy, you feel it’s pointless to ask any financial institution for an auto loan, as they won’t accept your application.
Although bankruptcy does penalize your credit score, that shouldn’t stop you from taking the necessary steps to decrease the damage. It’s vital that you start rebuilding your credit score as soon as possible so that it becomes easier to make larger purchases in the future. Today, you will learn how to purchase a car, even after going through bankruptcy.
Obtain your credit report and go through it - Although it is painful to look at your credit report, you should know what is in it, as it will help you in the future. There are chances of the credit union making mistakes during reporting, which you can correct.
Increase the amount of down payment - In most cases, your cash flow will start to increase, as all your debts get wiped out. Start saving as much money as possible, before you start looking for a car loan. When you make larger down payment, the car loan’s size will decrease at the same time. Also, it reduces the monthly payment, which you can fit into your budget easily.
Approach an auto lender who specializes in bad credit - The next step is to start looking around for auto lenders who specialize in helping customers with bad credit. As these financial institutions have more experience in dealing with customers with different types of credit, the chance of getting a car loan is much higher.
A good auto lender will go through your loan application, despite filing for bankruptcy. Also, the lender will give you good rates of interest on the car loan, which makes repayment easier.
These are the three steps that you should follow after going through bankruptcy. As you are looking for an auto lender who will give you a car loan, you should approach TakeTheDrive. Thanks to their partnerships with numerous dealers throughout Canada, you can always pick the perfect car that meets all your requirements. Fill in the online application today!