How to get a car loan when you have unpaid child support

Posted by on Aug 10, 2022 - Archived under Bad Credit Car Loan Tips

Today, we are going to talk about how to buy a car in Canada when you have unpaid child support.

Now there are some people who will immediately jump to the conclusion that a person who doesn’t pay their child support is a “deadbeat parent.”

While that could be the case, the pandemic has caused untold hardship for Canadians from coast to coast. That’s why we are going to discuss the steps you should take when trying to get back on a solid financial footing.

Taking stock of your finances

The first thing you need to do is take responsibility for your financial situation. Prospective lenders will want to know why you are behind in your child support payments.

Don’t think you can hide the fact you are in arrears when it comes time to register the vehicle in your name, if you have unpaid child support and the courts are involved, you will not be able to register the vehicle or even renew or license!

You could have suffered a job loss or were ill due to Covid; whatever the cause of the hardship, you need to be able to provide an explanation and a plan of action to get back on your feet.

For example, did you recently start a new job or business? There needs to be a reason why you anticipate being able to get caught up with your financial obligations and take on a new car loan payment.

How is your credit score overall?

While having unpaid child support is a challenge, your overall credit score is something that lenders pay close attention to.

With child support, the courts could garnish your wages, but if you have worked out a repayment plan and stick to it, the risk of being garnished goes away.

What lenders want to know is whether you are generally speaking responsible with your finances. If you don’t know what your current credit score is, you can check out your credit score for free by visiting Equifax and TransUnion.

If your score is under 620, you are considered to be in subprime territory and should work on boosting your credit score by making your payments on time and reducing the total amount of debt you are carrying.

Where to get a car loan when you have unpaid child support

There are websites that advertise everyone approved, but those websites are not a viable option.

You need to go through a local dealership, one that will be able to do whatever it takes to help you get approved.

These local dealerships will be able to speak with lenders on your behalf and discuss the circumstances that caused you to get behind with your payments.

By having the dealership go to bat for you, the chances of getting approved will improve dramatically.

Now that you know how to get approved for a car loan with unpaid child support, you should contact the dealership now and start test-driving vehicles.

For those of you who know that you have a challenging credit situation, please visit Dixie Auto Loans where we have a team of credit specialists ready to help you get approved for a car loan today!

Let’s get in touch! 

Dixie Auto Loans