In Canada when someone files a Bankruptcy, they are taking a major step towards absolving debt and bad credit they cannot managed. If a bankruptcy is completed successfully, then the individual or business is free of any responsibilities tied to the car loans, credit card or other credit included in the bankruptcy. This new level of debt freedom is supposed to be the start of a long process of credit rehabilitation.
When someone submits a credit applicantion after they complete bankruptcy or a consumer proposal it is often rejected by regular prime banks, especially if the credit application is for a car loan.
Auto finance and Car Finance companies tend to decline credit applications that show an old bankruptcy, credit counselling or a consumer proposal. This is the main reason why you always hear people say things like:
You have to wait 7 years for your Bankruptcy to fall off your Credit Bureau or You cant apply for credit or get another auto loan until your Bankruptcy is wiped off your credit bureau and After seven years your credit history is erased.
That is not the attitude or the answer.
Although it is true that after 6 7 years any inactive credit (including a completed bankruptcy, consumer proposal, credit counselling, car loan repo or bad credit write off) will be cleared off your credit bureau, it is not part of the credit rehabilitation process. Bad Credit Rehabilitation, just like physical rehabilitation involves action.
If you want to strengthen a weakened limb you need to exercise it. That is exactly the same process required in rebuild and repaired damaged credit and bankruptcy histories!
Often after a bankruptcy or consumer proposal, a trustee in bankruptcy will suggest getting a secured credit card to help rebuild bad credit. Because a secured credit card is secured with the applicants own money, its a 100% guaranteed approved credit card. As long as the applicant is a legal citizen of Canada or the country they are applying for and they can provide the necessary funds, their credit applicant will always be approved. Once approved, all they need to do is use the credit card and make the payments on time without going over the limit. That information is reported to the credit bureau and helps repair the persons credit by exercising it. A well paid credit card, even if its a secured card, is the credit rehabilitation equivalent of the one armed bicep curl.
So if paying for and using a secured credit card can strengthen persons credit history the way a bicep curl can strengthen an arm. What type of loan is required to strengthen the bigger credit muscles?
A Car Loan!
The car loan is the bench press of credit rehabilitation and just like its weight training counterpart, it has no substitute!
If you can make regular auto loan payments on time after a bankruptcy, then you are sending a clear message to banks and other lenders. You are sending a message that says loud and clear My bankruptcy gave me the clean slate I needed.
A monthly car payment is usually $300 or more. Which means a well paid car loan is absolute proof that the bankruptcy youve completed has rehabilitated your credit and that the second chance youve been given got you back on your feet! An is smart effective way to get the auto loan you need, while actively exercising your damaged credit!
So next time someone tells you You need to wait 7 years after a bankruptcy to start borrowing again, just tell them you dont need seven years, you just need a car loan!
So a can help you speed up the credit rebuilding process but how do you get approved on a car loan after bankruptcy? (or in bankruptcy?). After all, most banks and car lenders declined bankruptcy or previous bankrupts.
To get approved a you need to visit a Special Finance centre that focuses on getting auto loans and car loans for those in bankruptcy or coming out of a bankruptcy. Canada has a few banks that offer attractive interest rates on car loans. If you want to get up, work standing up, if it is necessary, try this site walk around the table, do push-ups, stretch. If you visit a qualified credit center or special finance dealership then getting approved is usually as easy filing out a credit applicant online.
If youre bankrupt in Ontario, experiencing a consumer proposal or recovering from a bankruptcy then Car Credit Hero in Port Hope Ontario, can get you financed right away. CarCreditHero. com has a secure online credit application that takes 2 minutes to fill out and will get you driving a new car loan or used auto loan no matter how bad your credit history is.
Get a approved today at CarCreditHero. com.
If you want to learn more about , visit BankruptCarLoans. com a free resource for Canadians in Bankruptcy looking for a car loan.