Getting a car loan after a divorce can be a tricky task. A couple’s negative credit history and strained finances could be the reason for a divorce. When a couple is married, it is much simpler to get a car loan since both of the salaries are combined, or one could co-sign for the other. After a divorce, it may be more difficult to get a car loan. With careful planning, it is possible to bounce back from a divorce and get a car loan (and even potentially begin to raise a low credit score).
Part of getting divorced means starting over. A new start often involves getting and buying possessions that you may have lost in the divorce. One of these necessary things is a car. A lot of times the family car is sold in a divorce in order to split all property that the couple jointly owned. Getting a car loan can be difficult after a divorce, especially when one of the spouses relied on the other for their income. A co-signer will come in very handy after a divorce. If you don’t have anyone to co-sign for your car loan, it may be hard to secure a loan from a bank. Most of the time, banks require a stable and high income and good credit rating. If you do not have good credit due to debt that was written off during the divorce, it makes more sense to attempt to get a car loan from a smaller dealership or loan company.
The circumstances of the divorce and both spouses’ financial situations are factors that lenders consider when determining one’s eligibility for a car loan. Unfortunately, the debt of your spouse became your own debt during the marriage. Now that the marriage is over, the debt still exists under both of the parties’ credit reports. There are car loan lenders that specialize in helping newly divorced people that may not have good credit ratings, but are employed and in need of reliable transportation. They understand that a divorce can put someone in a negative financial situation, and they will work with you to get the best car loan at the lowest interest rate possible.
When a divorce has forced someone’s credit rating to plummet and they need a car loan, an important thing they can do is to figure out how much they can afford for a car payment. This is the first step when attempting to get a car loan after a divorce. One should be sure to pick an affordable and fuel-efficient vehicle. The possible maintenance costs and insurance prices should also be considered. The key is to choose a vehicle that is affordable while going through a difficult time such as a divorce. One should also save enough money to put a down a decent down payment. The bigger the down payment, the lower the monthly payments will be to pay back the car loan.