How to Get a Car Loan after BankruptcyAug 13rd, 2018
Have you filed for bankruptcy before? You probably know how hard it can be to get approved for credit after. Especially a car loan. We’ve got some good news for you. Getting approved for a new car loan after bankruptcy IS possible. You just need to make the first step.
Woodbine Nissan has helped hundreds of customers with no credit or bad credit get vehicle financing and secure a car loan right away. We walk you through the process and help you take the steps you need to get approved. Here are a few things you can do today to put you on the right track!
#1 Pull Your Credit Report
Knowing everything that appears on your credit report is crucial when it comes to applying for a new car loan. You might not like what you see but it’s important to be fully informed before you apply for credit.
Previous car loans are weighted more heavily on car loan applications than other types of credit. If the rest of your credit report is bad but you have a history of timely bill payments on an old car loan, your application could be seen in a more positive light.
#2 Determine a Budget
This is a chance for you to rebuild your credit and establish healthy spending habits. Picking a budget that you can manage is an important part of that process. Our Financial Advisors will sit down with you and help you determine a safe budget to keep to. We walk you through the application process and discuss all your options. We also make sure you include things like insurance, registration, fuel expenses and the cost of ownership.
#3 Make a Down Payment
We recommend saving a down payment before you apply for a new car loan. The bigger the down payment, the higher your chances of getting approved are. Even if you only manage to put away a thousand dollars, it’s a step in the right direction.
Saving enough money for a down payment shows a lender you are capable of making responsible financial decisions and have already begun the process of establishing yourself after bankruptcy. With a history of timely payments on a car loan that is within your means, you can slowly start to rebuild your credit.
#4 Refinance Your Car Loan
Because you filed for bankruptcy, your credit score might be very low. That also means you might only qualify for a loan at a very high-interest rate. Be encouraged. While you might have to pay a lot of interest at first, you can apply to refinance your loan after a few months of on-time payments.
Woodbine Nissan Second Chance Credit Services
At Woodbine Nissan, we provide auto loans and new vehicle financing for customers with every type of credit: Good credit, bad credit, no credit, and bankruptcy car loan issues. We sit down with you and help you find the right price with a payment plan you can afford. Then, we walk you through our easy online credit application.
We have established relationships with financial institutions and banks across Ontario which means we can help get you the best financing rate possible, even after declaring bankruptcy. Financial missteps are a part of life. Getting back on your feet is possible and we can help.