How to Get a Fair Priced Car Loan after Divorce in Georgetown
How to Get a Fair Priced Car Loan after Divorce in Georgetown
Posted on April 18, 2022
If you were recently divorced or thinking about filing, one of the challenges you are going to face is securing financing for a new car loan after divorce in Georgetown.
Usually, after divorce your credit score and finances will go through a major upheaval, so we are going to give you the information needed to make a better-informed decision.
Reviewing your credit score
When building or rebuilding credit, you need a starting point so you can track your progress.
You do this by signing up with TransUnion and Equifax for their free credit monitoring service.
These companies offer paid services, like identity theft monitoring, but you don’t need to pay for that, at least not now.
Once you have access to your credit report, you can note any accounts that you and your spouse shared that may be delinquent.
Depending on the court ruling, you may be solely responsible for all of your and your former spouse's accrued debts.
If you notice any accounts that are past due or sent to collections, you must make it your top priority to get those paid ASAP.
Nothing hurts your credit score like having past due accounts; even if the reason was due to a divorce, lenders only focus on credit scores and your repayment track record.
You may need to tighten your belt and look for savings in your budget to pay off these debts, but you will be happy when your accounts are brought back up to date.
When your accounts are current, your credit score will start to improve, but it will take a few months before you start to see substantial progress.
Having a good income helps boost your chances
You may be ordered to pay alimony or child support depending on what the divorce court has ruled.
Lenders will not issue a new car loan in Georgetown if your debt-to-income ratio is 40% or higher.
To calculate this, take your total gross income and multiply it by 40%, then subtract all of your current debts from the result of that calculation.
Whatever is left is what can be applied against your car loan; the average car loan in Canada is over $500 per month, so you need to have at least that much room in your budget.
Turning to the professionals for help
In this situation, your best option is going to a dealership in your area and getting them to help you with getting a Georgetown car loan.
The experts at the dealership have helped other Canadians just like you, who went through a divorce and needed to get back on their feet financially.
When you work with the dealership, they will show you how to quickly rebuild your credit to take advantage of the great financing options currently available.
Roughly 1 out of every 2 marriages end in divorce, so you are not alone; contact the dealership right now and start booking test drives as you get a new lease on life.
You will feel so much better behind the wheel of your new car, especially since you are starting this brand new chapter in your life.
We’d love to help you find a car loan after divorce in Georgetown. Simply fill in the form below and we’ll get back to you ASAP or see our selection of new and used cars at our Burlington dealership.
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