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How to get a car loan in London after going through a divorce

How to get a car loan in London after going through a divorce

Even though no one wants to talk about divorce, about half of all married couples will have to deal with it at some point.

Getting a divorce is one of the hardest things you will ever have to do. Not only will your relationship fall apart, but your finances can also be turned upside down.

Our London car loans team are going to talk about some of the problems you'll face and how to deal with them.

Divorce can be hard on your credit

Most couples have joint accounts. If the judge assigned the debts to you as part of your divorce settlement, you are fully responsible for the debts.

However, most of the time, a couple's credit cards and lines of credit are maxed out before they file for divorce. This means that you could be saddled with a huge amount of debt that will show up on your credit report.

Most likely, your credit score will go down.

One of the things that go into figuring out your credit score is your credit utilization, which is a ratio of how much debt you have to how much credit you have available.

Since you are responsible for all of your debts, your credit utilization rate will go up, and your credit score will go down.

This is not "fear-mongering," but we will tell you what to expect so you can be ready.

Making a plan to deal with your current credit problems

You will need to make a budget and try to get as much as possible out of every dollar. Do you also have to pay alimony or child support on top of your debts?

Your debt-to-income ratio will include these amounts, so you must add them up.

Once you know how much you owe, including court-ordered debts, you can look for lenders who will give you a car loan.

Getting the right car for your needs

You might want to buy a brand-new car, but because you have a lot of debt and credit problems, your best bet is to buy a used car.

Don't think of this as a loss; you have a plan to get your finances back on track, and this is the first step.

You won't be able to find a good lender on your own. The Internet is full of websites that offer car loans, but these are just middlemen who sell your information to other lenders.

You need someone who understands your situation and can set up a car loan that makes sense.

You can get in touch with these lenders if you work with a car dealership that has helped other people who have been divorced get a car.

These dealerships have "seen it all," so they will know what to do to make your deal work. After the dealer has done its evaluation, it will choose the lender who will give you the best deal.

Some people see divorce as the end, but for you, it's the start of a new life. Enjoy the ride home in your new car.

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

Categories: Car Loan

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