The ultimate guide to buying a car after a consumer proposal in Hannon

The ultimate guide to buying a car after a consumer proposal in Hannon

Posted on August 17, 2022

If you are in or just completed a consumer proposal and need a new car, you are in the right place.

Our Hannon auto loans team are going to cover the key things you need to bear in mind when trying to get a car loan, so you can come out ahead.

When was your consumer proposal completed?

This is a key question because if you are still in a consumer proposal, technically speaking; you cannot take on new debts.

Your insolvency trustee will give you documentation confirming the consumer proposal has been completed; if you have not received that confirmation, you should call and request it today.

Now that we know the consumer proposal has been completed, you should sign up for services like Credit Karma and Koho, so you can find out what is your current score.

The consumer proposal would have caused a significant drop in your credit score, so you need to establish a baseline and work from there.

How to safely rebuild your credit score

There are numerous credit rebuilding scams being offered online, don’t waste your time or money on these gimmicks.

The only viable way to boost your credit score is by following best practices, namely paying your debts on time and keeping the total amount of debt you are carrying to less than 50% of your total available credit.

If you follow these two simple rules, your credit score is going to improve in no time at all.

Since there is a consumer proposal on your credit report that stays there for up to six years, most creditors will not give you new credit.

What you can do is sign up for a Koho credit building loan; this helps you re-establish your credit score. Another option is getting a secured credit card from Home Trust.

You need to sign up for these facilities soon; the longer you delay signing up for these accounts, the longer it will take for your credit score to improve.

The best place to get approved for a car loan today after being in a consumer proposal is through your local car dealership.

They have first-hand knowledge of how to get you approved for a car loan by working with the dealership's vast network of lenders; the dealership will surely be able to find someone to approve your loan today.

Another compelling reason why you should work with the dealership today is their access to in-house credit professionals.

These experts are going to craft a credit rebuilding plan that is tailored to your needs. If you stick to the plan detailed by the dealership credit experts, you will have access to the most preferential interest rates in a matter of months.

There are many options available to you after going through a consumer proposal, but you need to take action now and contact the dealership.

Contact Unique Chrysler for help, advice and competitive Hannon car finance and leasing.

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