2 Consumer Proposal Myth Car Loan Applicants Need To Ignore

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The thought dealing with a consumer proposal is always scary. The good thing about being in such a situation is the fact that it always leaves one with some tough lessons. You can therefore come out of debt a better money manager than most trained business executives. So don’t fret if you suspect a consumer proposal is on its way. Don’t worry too if you need an affordable car loan after consumer proposal. There are so many banks that can listen to you and offer to assist you. But before that, clear some doubts and myths about how banks view clients with consumer proposal forms.

It is the same as bankruptcy

Bankruptcy and consumer proposal are two different things. Both are common however, in the sense that one is in a tough financial situation. As far as the differences are concerned, a bankrupt person will always have a hard time getting approved for a car loan compared to a person with a client proposal form. A client proposal situation is simply a testament that you are in debt but you are in agreement with your creditors that you will be clearing their debts at a given time and that you are actually in the process of clearing the debts. Lenders will therefore look at your situation and decide whether or not you qualify for their loan products.

It makes it hard for one to get a new car

Always remember that when it comes to car loans, lenders always work with numbers. Note too that numbers cannot in any way, lie. Your lender will look at your income to debt ratio. The lender will then calculate how easy or hard it is for you to repay the amount they want to offer you. Should the numbers work on your favor, then you will most likely drive home with a new or used car.