Finding a Brantford Car Loan after Divorce [2022]

Finding a Brantford Car Loan after Divorce [2022]

Posted on March 7, 2022

Over 50% of marriages will end in divorce. This is not something most couples think about when they are standing at the altar. If you are going through a divorce, your life can feel like it has been turned upside down.

One of the biggest challenges you will face is accessing credit and automobile financing on your own.

We are going to show you what steps need to be taken to access credit and rebuild your life.

By the time you reach the end of this conversation, you will feel more confident about finding a Brantford car loan after divorce.

Setting up accounts in your name

You and your spouse most likely had joint accounts; if you were not the main account holder, then you must work on establishing credit in your own name.

To start, request copies of your credit report from TransUnion and Equifax, they offer paid credit monitoring services, but you don’t need it.

Credit scores typically range from 300 up to 900; the average credit score in Canada is in the 660 range.

If your credit score is over 600, you'll have no problem finding a Brantford car loan after divorce.

It would be prudent on your part to open up additional credit cards and lines of credit as soon as possible.

Many variables go into calculating your credit score, but one of the most important items is your mix of credit products. By having a variety of different credit products, your credit score will start to improve substantially.

Reviewing your financial situation

Many things have changed since the divorce; your financial situation would have changed. For example, are you required to pay alimony or child support?

These are expenses that will eat into your car-buying budget and need to be taken into consideration.

Your financial obligations, including the new car payment, cannot exceed thirty percent of your total income.

So, for example, if you made $10,000 per month, then no more than $3,500 can be used to service debt, alimony, and child support would be a part of that calculation.

New cars are currently selling for well over $50,000, and the average term for a car loan is 72 months, which works out to be roughly $700 a month, not factoring in interest or running costs that come with owning a car. Given these costs, you might consider buying a used car that doesn’t have such a high asking price.

Seek out expert support

Something that you should do is make it a top priority to work with a local car-buying expert.

You can find these experts at your neighborhood car dealership. The dealership would have worked with other people that went through a divorce and be able to get you approved for a car loan.

These dealerships will also help show you the steps needed to rebuild your credit. Just knowing you have someone that you can rely on can make a world of difference.

After a divorce, buying a new car is a significant milestone in this new chapter of your life, so make the first step and contact the dealership.

We’d love to help you find the perfect car loan. Simply fill in the form below and we’ll get back to you ASAP! 

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