Get Approved in Bankruptcy
So you’ve got bad credit, you filed bankruptcy or you’re discharged from bankruptcy and you need an auto loan. Needing an auto loan while in bankruptcy or with bad credit is a common situation that many Canadians find themselves in.
Bankrupt Auto Loans breaks down what bad credit is, what bankruptcy means and how to get approved for an auto loan in both tough situations.
Get Approved for an Auto Loan in Canada!
Getting approved for an auto loan can be very easy for someone with strong credit or a great co signor but a bankrupt consumer or a previously bankrupt doesn’t have it so easy.
Getting an approval on an auto loan in bankruptcy or after bankruptcy involves a little extra work but its a bankruptcy fact that it’s not impossible and it happens every day in Canada.
Get a Bankruptcy Auto Loan
If you’re in bankruptcy your main job is to successfully complete bankruptcy on time. If incurring extra debt and financing a car loan will affect your bankruptcy and cause you to fail your bankruptcy then you shouldn’t get a bankrupt auto loan.
If you can balance bankruptcy with an auto loan then you might qualify for a bankruptcy auto loan. Not only can an auto loan in bankruptcy help you buy a new car but it can also help you repair bad credit.
Talk to your Trustee in Bankruptcy – If you’re bankrupt then you’re working with a trustee in bankruptcy. Speaking with your trustee in bankruptcy before applying for an auto loan should be your first step. A trustee in bankruptcy can review your payment history, review your affordability and even offer a professional opinion that will make your auto loan decision easier.
If you and your trustee think a bankrupt auto loan is something you can afford then it might be time to find a car dealership and apply for a car loan!
Get an After Bankruptcy Auto Loan
Your bankruptcy is discharged and you finally have the fresh start you wanted. This is what you filed bankruptcy for – a clean credit slate.
Unfortunately your clean slate isn’t so clean after all. Your credit bureau still shows a bad credit history and the bankruptcy you completed is shown right next to it. Banks are not usually open to approving single applicant auto loans after bankruptcy and waiting 7 years for the bankruptcy to go away is unrealistic.
If you’re receiving a regular income, finished bankruptcy and you’re ready for an auto loan then you might qualify for an after bankruptcy auto loan. These special finance auto loans are available all over Canada from many banks and car dealers.
Who Approves Bankruptcy Auto Loans?
Bad credit and bankruptcy auto loans get approved by banks, car dealers, private lenders and subprime auto finance companies. Although there are many private lenders and dealerships with in-house leasing programs, they are usually not the best choice.
One of the most important things an auto loan can do for you is build or repair credit. In-house leasing programs and private lenders do not usually report credit history to Canadian credit bureaus. If well paid auto loan payments are not on your credit bureau then there is no proof that you paid them on time and they will not help repair your bad credit!
How to get Approved for an Auto Loan in Canada
Find a Car Dealer – First you need to find a car dealership that understands credit and knows how to get a bad credit loan or bankruptcy loan approved. Use the internet, yellow pages or the opinion of someone you trust to do this.
There are hundreds of dealerships in Canada that claim to approve any type of bad credit but they are not always the experts they try to be. Please make sure the car dealer you choose is licensed, qualified and trustworthy when it comes to selling cars and auto financing.
Apply for a Car Loan – Once you’re comfortable with the vehicle and the car dealer you’ve chosen (remember trust and expertise are very important), it’s time to apply for your auto loan. Many dealerships, finance companies and brokers will let you to apply online. Online credit applications are quite common now and usually take a few minutes to complete. Many dealerships will also give you the option of applying over the phone or in person.
Get Approved for a Car Loan – You found a car dealership that specializes in bad credit and you applied for an auto loan but how do you get approved? Well that depends on several factors. First of all if you’re in a bankruptcy and it’s not complete then the bank may want to speak to your trustee in bankruptcy. If you’re not making your bankruptcy payments on time, you will probably not qualify for an auto loan.
Another important factor is your employment situation. If you cannot prove your income, then you won’t for an auto loan. This also applies if you do not make enough income to support a car payment.
Finally, make sure the car you want to buy is both in your price range and the right vehicle for you. If you’re looking to buy your dream car right after bankruptcy then you may not be ready for a bankrupt auto loan.
Bankruptcy Loans Approved
BankruptAutoLoans.com does not endorse or support any specific Special Finance banks or car dealerships. There are literally hundreds of car dealers in Canada that specialize in bankruptcy and bad credit auto loans.
Please do your research and make a smart decision with affordability a priority. Thank you and good luck
Bankrupt Auto Loans Canada