Getting a car loan while you're in a proposal
Being in an active consumer proposal does not stop you from financing a vehicle. Lenders that work with proposals will usually want to see that you have made your proposal payments on time, often for at least several months.
It is a good idea to tell your Licensed Insolvency Trustee before you take on a new loan. They can confirm it fits your budget and that it will not affect your proposal.
Getting a car loan after your proposal is finished
Once you have completed your proposal, ask your trustee for your Certificate of Full Performance. Lenders often ask for it, and it shows you finished what you agreed to.
The proposal stays on your credit report for a period after you finish. The credit bureaus have shortened this in recent years, and it is never more than six years from the date you filed. Your trustee can tell you the exact date for your file.
In or out of a proposal? Check your options
Takes about 2 minutes. No SIN needed to start and no hard credit check to see your options.
What lenders look at with a proposal
- Proposal payment history: on time, every month.
- Income that comfortably covers the car payment alongside your proposal payment.
- Time at your job.
- Any new credit since the proposal, such as a secured card paid on time.
- A sensible vehicle and loan amount.
Rebuilding credit after a proposal
A car loan paid on time is one of the strongest ways to rebuild credit after a proposal. Pair it with a secured credit card kept at a low balance and paid in full. Many people find they can get a noticeably better rate within two to three years of finishing.