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Tips to Finance an Auto Loan after Divorce in Smithville

Tips to Finance an Auto Loan after Divorce in Smithville

One of the biggest challenges a person can face post-divorce is being able to get a car loan on their own. Fortunately, our Smithville auto loans team are here to help.


Typically, your credit score is tied to the joint accounts you had with your spouse; when the relationship suffers a breakdown, the finances usually follow in lockstep.


Assessing your credit score and overall financial health


The first thing you will need to do is sign up for Equifax and TransUnion's free credit monitoring services.


These services will provide you with real-time access to your credit score and report; our credit score impacts many aspects of our life, so you need to keep tabs on it.


Along with reviewing your credit score, you should prepare a budget that reflects your new reality.


The budget does not have to be complicated; it just needs to show how much money is coming in each month and what are your current obligations.


Are you required to pay child support, alimony, or anything else as part of the divorce?


By itemizing these obligations, it will give you a sense of control.


After you have itemized all of these obligations, you should consider taking on another job to augment your income if you do not have a substantial amount of cash left over.


This added income will help you qualify for a larger car loan which will take some pressure off your budget.


Developing your credit improvement strategy


Your credit score may be relatively low post-divorce, so you need to start taking some proactive measures to bring the score up.


The first thing you should do is bring down the total amount of debt you are carrying; this is referred to as your "credit utilization," and it should be less than 30% of the total amount of credit you have available.


By lowering the total amount of debt you are carrying, it will drive up your credit score, which in turn reduces your future borrowing costs.


To get the lowest borrowing costs, you need a credit score over 720. Use that number as a goal and strive towards it.


Where to get the best Auto Loan after Divorce in Smithville


If you are looking for the best car loans after going through a divorce, you should contact a local car dealership.


These dealerships would have assisted other Canadians who, just like you, went through a divorce.


The dealership will know which lenders are going to give you the lowest rates and best terms overall. You will experience a tremendous amount of relief by going through the dealership, but you need to contact them today.


The car market is going through some profound changes, and interest rates are going to start rising as the Bank of Canada tries to slow inflation.


If you wait too long, your borrowing costs may climb dramatically, so do yourself a major favour and contact the dealership today; it will be the best decision you made all day!


We’d love to help you finance an auto loan after divorce in Smithville. Simply fill in the form below and we’ll get back to you ASAP or see our selection of used cars at our Burlington dealership. 


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