A divorce can half your income and shred your credit, but that doesn’t mean you are out of luck when you need a loan to get a new or used car. We at Broadway Credit know that a vehicle is important, whether you are a part of the daily commute or just going grocery shopping, and if your ex got the car (or the one you had is on its last legs) then there are options for you. Keep reading to check out our tips for getting a car loan after divorce.
Bring proof of income
Divorce generally decreases your income (at least as far as credit goes) because you and your ex-spouse are no longer lumped together. Sometimes lenders get nervous about this because they don’t know if you will have the income to make payments on a loan. Bringing evidence that you are employed and make enough to pay off a loan (like a pay stub) is a good idea when looking for a car loan.
Get pre-approved for a loan
Going to the car dealership with a loan already secured means that you will be able to negotiate on monthly payments, and make an honest judgement about what vehicle you can afford. This also means that fewer people will be investigating your credit score, which is better for it in the long run.
Make a larger down payment
It can be hard at times to save up the money for a larger down payment, but it can pay off in the long run. Generally speaking, the more you have as a down payment, the less time you will need to pay off the loan. A decent down payment also shows a dealer that you will be able to make later payments.
Go to a dealership where you have a history
Going to a dealership that you have worked with in the past means that they know you and will be more likely to work with you through your challenges. Also, each time you purchase or lease a car, the dealership benefits. If you have been a good customer in the past they will want to hold on to you, and so will be more likely to work with you in challenging times.
Share what you are going through
While some dealerships will treat people as though they were nothing but walking credit scores, your story matters. At Broadway Credit, we have a long history of taking each person as they come and listening to where they are at rather than jumping to a conclusion. If you aren’t in the Green Bay area, sometimes talking to your local dealership and explaining where you are in life can help you get a financing opportunity that will put you on the path to a new and improved credit score.
Most people see a credit drop during and after a divorce, but most also see their credit come back up as they are able to build their own, new and unencumbered score. Good luck, and contact us if we can help you in you car loan needs.