Tips on how to get a car loan after a divorce in Hamilton

Tips on how to get a car loan after a divorce in Hamilton

Posted on September 12, 2022

Finding finance for a new car if you recently got divorced and need one is more difficult than it was when you were married, as our Hamilton auto loans team explains.

You must listen until the finish of the talk since our objective is to demonstrate the procedures that must be performed in order for you to obtain a car loan and obtain a new lease of life.

Divorce negatively impacts your credit

One of the main reasons for divorce in Hamilton is financial conflict; if your finances were precarious before the divorce, you can be in serious financial trouble by the time the divorce is finalised.

Consequently, the first order of business is to view your Equifax and TransUnion credit reports to see where you stand.

There is one caveat we would like to add: you can still obtain vehicle loans, and we will show you how in a few minutes.

If your credit score is below 620, you will not qualify for the majority of auto finance or credit products; those you do qualify for will carry an extremely high-interest rate.

Taking care of your credit problems

Look for accounts that are past due or will become past due once you get access to your credit report.

To keep these accounts current, you must immediately begin making payments.

You might need to go through your budget again or take on another work to increase your income if money is tight, which it is for the majority of Canadians.

Your credit score will recover more quickly the sooner you can begin to pay off these bills.

How much cash do you earn and how consistent is it?

After a divorce, the principal breadwinner typically has to pay their ex-spouse maintenance in addition to whatever child support the court may impose.

This can consume a significant portion of your salary, especially if you need to relocate.

You need to get to work and start doing extra jobs in order to make enough money to have a roof over your head because it is tough to change or get these court judgments removed.

When creating your budget, keep in mind that your debts cannot total more than forty percent of your gross income.

Where to apply for a vehicle loan after divorce in Hamilton

The final place you should seek for a car loan is online; even then, those websites aren't a suitable choice because the offers that are being made there are for borrowers with excellent credit.

What you should do is get in touch with a local vehicle dealership; you can easily discover one that works with borrowers who have credit concerns.

Once you've located the dealership, go there and start talking about the loan choices that are available.

You're starting a new chapter in your life, but you don't have to go through it alone. The dealership will put you in the driver's seat of a brand-new vehicle to put you back on your feet.

Contact Unique Chrysler for help, advice and competitive Hamilton car finance and leasing.

Thanks for reading. Be sure to connect with us on Facebook, Twitter, Instagram, or LinkedIn to stay up to date on our latest great articles!