rebuilding your credit after a proposal or bankruptcy

a consumer proposal or a bankruptcy is not the end of your ability to borrow. it is a period you work through, and a car loan is one of the more effective ways to work through it.

why a car loan helps

credit is rebuilt by demonstrating that you can borrow and repay on schedule, and a car loan does that unusually well.

it reports monthly to the bureaus. it is secured against the vehicle, which makes lenders more willing to say yes than they would be for unsecured credit. and it is a fixed payment on a fixed schedule, which is easier to manage than a revolving balance.

twelve to twenty-four months of payments made on time genuinely moves a score.

where you actually stand

during a consumer proposal, some lenders will still lend, though usually with conditions.

after a proposal is completed, more will, and the discharge date matters more than the proposal itself.

after a bankruptcy discharge, the same is true, and time since discharge is the number lenders look at hardest.

it stays on your Equifax file for a period after completion, and no lender or dealer can remove it. anybody offering to is describing something that does not exist.

what helps your application

• steady employment, and the longer at the same employer the better
• a down payment, which reduces the lender's risk and often the rate
• a realistic vehicle. the strongest application is for a car comfortably within what you can afford, not at the limit of it
• a trade, if you have one
• time since discharge. even a few months makes a difference

what we will not do

we will not tell you that you are approved before a lender has said so.

we will not put you into a payment that we can see does not fit your income. the point of this is to rebuild your credit, and a loan you struggle with does the opposite of that in the worst possible way.

if the honest answer is to wait six months, save a down payment and come back, that is what you will hear.

starting

apply at get approved, or call 519-773-7132 and talk it through first. there is no cost to finding out where you stand, and no obligation attached to asking.