When you get married, divorce is probably the last thing you think about but roughly half of all married couples will end up in divorce.
If you are currently going through a divorce or soon will, these tips from our Mount Hope auto loans team will help you get a better financial foothold as you navigate these challenging times.
Establishing your own individual accounts
Most married couples share everything including their bank and credit accounts. You will need to establish new accounts in your own name, this will help you when trying to buy a new car or secure any type of financing.
Try to open a few different credit accounts so you have a mix of credit and a bank account as well (only do this after speaking with your divorce attorney to make sure you are able to do this).
Dealing with the financial fallout from a divorce
When the divorce is being settled, the assets and liabilities are usually disbursed. You may find yourself with the lion’s share of all the debts that you and your spouse made.
To compound this financial hardship, you may be ordered to pay spousal and child support.
If you are ordered to pay spousal and child support, that will have a material impact on how much of a car loan you can secure. Lenders look at your total debts including child and spousal support payments so you must bear that in mind when you are shopping for a car.
Finding a new place to live
Your spouse may keep the marital home or it could be sold off, in either case, you will need to find a new place to call home. The rent or mortgage that you will be paying also has to be factored into your total financial obligations.
Taking stock of your credit and income
Now would be a great time to review your credit reports from both credit reporting agencies. You need to establish your baseline credit score.
If your credit score is below 680, you will have a hard time getting prime rates on most financial products including Mount Hope car loans but you still will be able to get a loan.
You are not alone
You may feel alone and in a state of despair, divorce takes a heavy financial and emotional toll on a person. There are resources available to help make the car buying process simpler.
Your best resource is a local car dealership that can review your financial situation to see what is the maximum car loan you would qualify for based on your current credit and income.
The dealership is able to come up with a plan on how you can boost your credit score and qualify to refinance your car loan in a year or two when your credit score goes up. Most importantly, the dealership has helped other people just like you rebuild your life.
The best decision you will make today is the decision to contact your local dealership and explore your options.