Gateway Auto & RV Sales & Financing acting as Great Canadian Solutions
HOW TO GET A CAR LOAN AFTER BANKRUPTCY
TIPS TO SECURE A CAR LOAN AFTER BANKRUPTCY
Many people that having a prior bankruptcy and the resulting poor credit will prevent them from financing an automobile purchase. That is not necessarily true. While it can be a challenge to find a lender willing to work with you, with a little effort and planning, it is possible to get a car loan after bankruptcy.
REBUILD YOUR CREDIT HISTORY
If you know that you will be looking to finance the purchase of a car with a bankruptcy in your history, it can help to reestablish some credit prior to approaching a lender. One way to do this is by having a credit card. Obtain either a secured or unsecured credit card and use it for a while paying your balance on-time monthly.
The good payment history from a credit card can help your credit score increase. It also shows the auto lender that you are a serious and responsible borrower. These things reflect positively on you on a loan application and increase the chance you will be offered financing for your auto purchase.
HAVE REALISTIC EXPECTATIONS
Past bankruptcy may lead to higher interest rates for financing offers. It's important to know the exact monthly payment amount you can afford and stick to it while shopping.
Lenders may require a down payment before extending credit for your auto purchase. Plan for this scenario and start saving for a down payment. Maximizing the down payment can reduce the loan required, lowering your monthly payments.
A bankruptcy on your credit history should not discourage you from vehicle shopping if you need a new car. Proper planning and realistic expectations can help you get a car loan after bankruptcy.
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Gateway Auto operates in Edmonton, Alberta and extends its services to the neighboring areas including Whitecourt, Sherwood Park, Red Deer, Cold Lake, Bonnyville, Lloydminster, Vermillion, Vegreville, Camrose, and their environs.
