How to Buy a Car After Going Bankrupt in Ontario

How to Buy a Car After Going Bankrupt in Ontario

Posted on April 14, 2022

The number of Canadians who filed for bankruptcy during the pandemic slowed due partly to the CERB, which was used by many Canadians to make ends meet while waiting for the economy to bounce back. Now a lot of us are looking to buy a car after going bankrupt. This is a challenge!

This cash allowed Canadians to pay down their debts, but many who work in the hospitality industry face bankruptcy or have gone through it.

If you need to buy a car and recently went through a bankruptcy, you are aware of how difficult it can be to get lenders to give you a chance.

Our goal is to show you how to get a car loan in Freelton after bankruptcy and begin living your best life.

Bankruptcy is a fresh start, but there are conditions that come with it

After you are discharged from bankruptcy, your credit report will show you have no debts, which is, in theory, a fresh start.

But the bankruptcy will remain on your credit report for up to seven years.

After that, lenders are worried about you going bankrupt again and will not be willing to issue a car loan.

There are some things you can do to help rebuild your credit score, but these steps take time, so you need to move fast.

The easiest way to rebuild your credit score after bankruptcy

The first step is to sign up for free credit monitoring with TransUnion and Equifax so that you can establish a baseline.

This is your starting point, so always track your credit going forward.

After you have signed up for the credit monitoring services, the next item is signing up for a secured credit card; Capital One and HomeTrust both offers secured credit cards.

Secured credit cards look and work just like a conventional credit card, but you are required to deposit funds before you can use the card.

This deposit is your available credit limit, so the more cash you deposit into the account, the higher your credit limit.

Every month you will receive a statement for your secured credit card, make your payments on time, and your credit score will start to improve.

After a few months, your credit score should be over 600, and you can apply for a fairly competitive car loan.

Where to get car loans after bankruptcy

If you need a car soon and do not have the luxury of time to wait for your credit score to recover, you should work with a local car dealership in your area.

The dealership will have credit experts on staff who can review your credit profile and find lenders that will give you a second chance.

When you go through a dealership, they also have vehicles in their inventory that will match your needs and budget.

By having the ability to get everything done in one place, you will save time and get the car that works for you.

Now that you know how to buy a car after going bankrupt, you should contact your local dealership today and get the ball rolling!

We’d love to help you buy a car after going bankrupt. Simply fill in the form below and we’ll get back to you ASAP or see our selection of new and used cars at our Burlington dealership. 

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