Sooner or later, most divorcing people find themselves in a stressful situation when their emotions run high. Along with many both mental and physical health issues, they have to struggle with lots of pocketbook problems. The latter ones are very likely to disrupt their normal life and deliver some troubles, such as lowering their credit scores so that they have fewer chances to get loans.
According to statistical data, both spouses work in slightly more than 59 percent of families with kids. Given the said, when these couples decide to end their marital relationship on paper, both sides find themselves in bad financial shape.
Factors That Can Hinder Your from Buying a Car
When going from a two-income family to a one-income one, the chances of getting a car loan approval are decreasing significantly. Here is why:
- Joint debts
If you were heavily in debt when your couple was married, you would have to divide it when it is not (the relevant term and conditions must be mentioned in your Washington state divorce papers). As a rule of thumb, if you didn’t have enough time to pay off all your debts, then be ready that your overall creditworthiness would be affected a lot in the long run. And no matter whether or not you were awarded responsibility for the debts, you are responsible for making payments if you had a joint account. Hence, if someone stops making payments, both sides will see their credit scores dropping.
- Reduced income
When it comes to a vehicle loan, your income is the first thing to take into account. Since your income has been reduced significantly, you cannot afford today what you could to earlier. Given your current standing, you should rethink which car you can purchase today and which one you cannot.
- Child & Spousal Support
Paying alimony or child support will affect your income and thus reduce the sum you can borrow for an auto.
So, how can you settle these issues? Purchasing an auto that you can afford to is a pretty good way out. Moreover, you can also try to have your name removed from the joint accounts. If your credit record is far from ideal, then hiring a car dealer sounds like a plan! If none of the mentioned fits your needs, then look for other options.
What Your Plan of Actions Should be Like
Divorce can influence many spheres of your life and your fiscal health is not an exception. There is evidence indicating that an average divorced person sees his or her credit score dropping by one third. If your financial situation got worse after divorce, then you have to look for ways to have your auto loan approved. Below, there are some measures you can take to buy a car after divorce effortlessly:
- Figure out what your credit score is.It is crucial to have a clear idea of how high your credit score is before heading to an auto market. It also pays to make sure that there are no errors on your credit report that may stretch the reality.
- Cooperate with your ex-spouse if possible.Of course, you cannot be sure that your ex will want to work with you, but it doesn’t hurt to ask anyway. Ask your ex to help you have your surname and initials removed from the debts that belong to nobody but your ex. Also, make sure that your name isn’t mentioned in any of the vehicle documents that belong to the cars you don’t own anymore.
- Try to make an initial up-frontpartial payment. Making it can do the trick. By doing so you will not only make a dealer believe that you are very serious about purchasing a car but also be able to lower your lending rate.
- Have all documents that can show your income after divorce on hand.Ascertain yourself that you can provide the paperwork that contains information about the alimony you are either getting or paying.
- Don’t hide anything from your car dealer or lender.Always come clean. A good lender will definitely show an understanding of your position. If your income was significantly higher earlier, he or she may give you approval even if your financial shape is far from perfect to date.