The Best Ways To Get An Auto Loan Despite Bankruptcy
Let’s be honest, filing for bankruptcy is not a fun nor an easy thing to do. Many people feel like they’ve failed at life, and have nowhere to go but down. But that’s not true at all. It is definitely possible to build up your credit rating despite the hard hits from bankruptcy. There are companies out there that are tailored to people who have gone through exactly this type of thing. Bankruptcy does not equal permanent financial ruin. Rather, it’s just a simple financial setback.
According to statistics provided by the Federal Government of Canada, every 1 in 6 Canadians will declare that they’ve gone bankrupt at least once in their lifetime. That number is astonishing and certainly points towards the fact that personal bankruptcy does happen a lot. It’s not something to be ashamed of, and just because it lowers your credit doesn’t mean you can’t bring your ratings back up. There are a massive amount of companies in Canada that specialize in helping customers improve their credit rating. In house financing, direct financing, and so much more are available to people with bad credit.
For those unfamiliar with how bankruptcy actually works, you basically wipe out all of your debts when you can no longer afford to pay any of them. This is a legal concept enforced by the Federal Government, however, it’s not something to take lightly. People who declare bankruptcy have the declaration on their credit record for the following six years. This often downgrades you severely in the eyes of potential lenders because you’re seen as a higher risk. This isn’t the end of your world, however. Many companies will still accept your application for an auto loan, but you may be subject to some hefty interest rates.
Time To Manage Your Expectations
It’s definitely important to keep in mind that just because you can still obtain auto loans after bankruptcy does not mean they’d be as high quality as before the declaration. You need to expect your interest rates to be higher, and the terms of your loan to be less flexible. You’ll also probably have little to no ability to negotiate with potential lenders. After all, it is their money, and in their eyes giving you a loan is very risky.
Prevention of Further Downfall
Before you go out and find a lender that will provide you with an auto loan, you need to do some planning to ensure that you can actually pay off another loan. You need to put a budget together that includes everything necessary. This means gas money, insurance, repairs AND maintenance costs. If you fail to pay these off your credit rating will fall so far you’ll have an incredibly difficult time getting another loan.
Time To Find Your Lender
With all of this in mind, it’s time to go out and find the lender that works best for you. You need to go out and find a company that’s willing to give you an auto loan within your budget. A company that has an interest rate that falls within your budget, and accepts the quantity of a possible down payment is what you need to find.
When looking for possible lenders, you’ll need to do some research. Find companies that are dedicated to helping people with bad credit. These companies typically understand that bad credit can happen because of a variety of factors that sometimes people can’t control. These companies understand that you’re more than a number, and deserve the opportunity to bring up your ratings.
Obtain Your Credit Scores & Report
When trying to plan out your future in regards to credit, you’ll need to take a look at your current credit score. This will let you pinpoint exactly which companies you can and can’t apply too, as well as tell you how much improvement needs to happen. You can get your credit score from online sources free of charge. Just make sure the webpage you’re using is legit. You don’t want to give your information to just about anyone out there! That’s one heck of a way to breed identity theft!
Why You Should Come To Us
Here at the Auto Loan Centre, we’re dedicated to providing customers with only the best customer service we have to offer. Not only that but we are dedicated to helping all customers, regardless of their credit rating. Customers with bad credit are encouraged to apply for an auto loan as we pride ourselves on our ability to help customers build up their credit ratings. Contact us today to either apply or receive a free consultation with no strings attached. We simply want what’s best for our customers, and we won’t rest till you obtain exactly what you need.