Car Loans After Bankruptcy in Canada - Auto Loan while Bankrupt

Bankruptcy isn’t the end of the road, think of it as wiping the slate clean and having a fresh start and a fresh financial future. There are several reasons why people enter a bankruptcy: divorce, job loss, loss of income, illness etc. Car loans are a great tool for rebuilding your credit report. Don't worry, there are bad credit auto loans available across Canada.

At CarLoansCanada.ca we are able to help people that have been discharged from a bankruptcy and those who may still be a standard bankruptcy. Apply today and get your credit back on track!

What you need to know about Bankruptcy Car Loans:

a) Know your budget and what you can afford. Sit down by yourself or with your partner and determine what your "Comfortable Monthly Payment Budget" is. Consider that you will also need money for Automobile Insurance, Gas and occasional repairs or maintenance.

b) Keep copies of your pay stubs & tax documents in a safeplace. These documents are almost always required by lenders to prove to them how much money you are making and how long you have been on the job.

c) Keep copies of all of your bankruptcy papers for future reference. Sometimes lenders will want to see these documents. Your initial bankruptcy papers showing what was included in your filing and your discharge papers are the most commonly request documents.

d) Get a copy of your Credit Report and review it for accuracy. You can obtain a copy of your credit file through the two main reporting agencies in Canada: Equifax Canada (Equifax.ca) and Trans Union (transunion.ca).

e) Purchase from the right dealership and lender program! There are two types of non-prime lenders in the Canadian automotive market: 1) Standard financial institutions and 2) In-House leasing companies. The standard finance companies place a secured lien on your credit file and show each payment you make. Showing each payment you make is very important as this is what improves your credit rating and other lenders can see it. The In-House or ‘Buy-Here-Pay-Here’ dealerships place a secured lien on your credit file however rarely show each payment you make often due to a lack of resources. They do NOT help you repair credit or establish credit!

Don’t be influenced by interest rates. Understandably, rates will be higher following a bankruptcy filing however there are programs available to break you out of existing loans after one year of monthly payments you have made towards your auto loan. These initial higher interest loans serve as a credit rebuilding tool and once you’ve established a positive payment history you can qualify for a lower rate car loan approval.

Let us help you get approved, driving, and on the road to good credit.

Services available in: Canadian, Alberta, British Columbia, Manitoba, Saskatchewan, New Brunswick, Nunavut, Northwest Territories, Nova Scotia, Quebec & PEI. Applying is Free and you are under no obligations once approved!