How to get a Burford car loan when going through a divorce

How to get a Burford car loan when going through a divorce

Posted on August 30, 2022

If you just got divorced, your finances would have changed in a big way. Getting a car loan on your own can be one of the hardest things to do after a divorce, as our Burford auto loans team explains.

Most of the time, your credit score is tied to the accounts you had with your spouse. When the relationship ends, the finances tend to go with it.

Taking a look at your credit score and your financial health as a whole

The first thing you need to do is sign up for the free credit monitoring services offered by Equifax and TransUnion.

Your credit score affects many parts of your life, so you need to keep an eye on it. These services will give you real-time access to your credit score and report.

In addition to checking your credit score, you should make a budget that takes into account your new situation.

The budget doesn't have to be hard to understand; all it needs to do is show how much money you get each month and how much you owe.

As part of the divorce, do you have to pay child support, spousal support, or anything else?

By making a list of these obligations, you will feel more in charge.

After you've made a list of all of your obligations, you might want to think about getting another job to add to your income if you don't have a lot of money left over.

This extra money will help you get a bigger car loan, which will make your budget less tight.

Creating a plan to improve your credit

After a divorce, your credit score may be pretty low, so you need to start doing things to bring it up.

The first thing you should do is reduce the total amount of debt you have. This is called your "credit utilization," and it should be less than 30% of the total amount of credit you have available.

By getting rid of some of your debt, your credit score will go up, which will make it cheaper for you to borrow money in the future.

To get the best rates on loans, your credit score needs to be over 720. So make that number your goal and try to get there.

How to get the best car loans in Burford after a divorce

After getting a divorce, if you want the best car loans, you should talk to a local car dealership.

These car lots could have helped other Canadians who went through a divorce just like you.

The dealership will be able to tell you which lenders will give you the best rates and terms overall. You will feel a lot better if you go through the dealership, but you need to get in touch with them today.

The car market is going through big changes, and the Bank of Canada is going to raise interest rates to try to slow inflation.

If you wait too long, your interest rates may go up a lot, so do yourself a big favour and call the dealership today; it will be the best thing you did all day.

When you’re ready for a car lease or loan, get in touch with the Burford auto loan experts at Northway Ford for great deals on auto finance.