Going through a divorce is something that nearly half of all married Canadians will experience at least once in their lifetime. Divorce presents a series of personal and economic challenges. We are going to give you the tools you need to make the right decision when you decide to buy a new car after divorce.
The impact divorce has on your credit score
While married, you and your spouse may have shared joint accounts. This means that both of you are financially responsible for the account.
If you missed any payments or carried too much debt, it would negatively impact your credit score.
Part of the divorce settlement would determine who is responsible for what debts. Whether you agree with the settlement is open for debate. Still, you are obligated to repay whatever the courts have ordered.
There is a good chance that your credit score has taken a significant hit since the divorce, so you will need to start working on rebuilding your credit right away.
Steps to take when rebuilding your credit score
Sign up with credit karma and find out your real-time credit score. Although credit scores are not set in stone, this is your starting point, and with some effort, you will be able to raise it in a matter of months.
Start by opening credit cards and lines of credit with just your name; if your credit score is low, you may not be able to get approved.
What you should do in this situation is apply for a secured credit card from Capital One. This secured card works just like a normal card, but you need to deposit cash into the account, which works as your credit limit.
If you deposit $1,000, then your credit limit would be $1,000.
Once you get the secured credit card, you need to make your payments on time, and over the span of a few months, your credit score will start to improve.
To get a competitive automobile loan, you need a credit score over 600 and a credit score over 720 for the best possible deal.
Reviewing your budget
Working on your credit score is important and takes time; while you wait for the credit score to bounce back, you should look at your budget.
Car loans range from $300-$800 per month, so you need to factor that into your existing budget. In addition, gas prices have soared, so you must pick a car that is fuel-efficient.
Accessing the best car loans after bankruptcy
You may not have the luxury of waiting for your credit score to improve, and you need to get a car right away. In this situation, you should visit your local dealership and get them to help you secure a car loan.
The dealership has worked with other borrowers just like you and will know which lenders offer car loans to individuals in situations just like you. The dealership will also show you the steps that must be taken to raise your credit score quickly.
So, now that you know how to buy a new car after divorce, you should contact your dealership today and begin reviewing the options that are available.
Click here to get approved for your next car loan online today! we have a team of credit specialists ready to help you buy a new car after divorce and will work with you no matter your credit score.
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