Divorce can adversely affect many things in your life, including your credit score. Last year, in a survey conducted by Credit.com, it was reported that 31% of 526 divorced adults suffered a 31% credit score drop after their marriages ended. If your finances have incurred significant damage following a divorce, how can you improve your chances to be approved for auto financing?
Damaged Credit Demands a Plan of Action
While tarnished credit may not prevent you from purchasing the car that you need, there are measures that you should take in order to ensure your success.
- Request and examine your credit report. Get a precise idea as to where you stand with your credit before stepping on to the car lot. You can also take this opportunity to check for any errors that might be on your report and unnecessarily hurting your score.
- If possible, work with your ex. And while there is no guarantee that your ex will be willing to work with you, it wouldn't hurt to communicate just long enough to sort out a few financial details. See if you can have your name removed from any outstanding debts that actually only belong to your ex. Also, have your name taken off of any titles to vehicles that you no longer possess.
- Have paperwork that shows your post-divorce income. Make sure that you provide documentation of any alimony or child support that you are either paying or receiving.
- Plan to make a reasonable down payment (if possible). Making a down payment will do several things to benefit you. It will show your lender that you are serious about your car purchase, it will protect you from the quick accumulation of negative equity, and it may earn you at least a slightly lower interest rate.
- Be completely open with your dealer/lender. Tell them your story. Good dealers and lenders look at people as more than just a credit score. If you had good credit up until this life changing event, your lender may be willing to take a chance on you even if your credit is less than perfect right now.
Tough Times Call for Knowledgeable Experts
If a divorce has left you without a means of reliable transportation and damaged credit, Auto Credit Express can help you get back on the road and on your way to a higher credit rating. Get the car that you need with affordable auto financing with our quick and easy process.
Just fill out our fast and secure application to get started today.