Divorce, Credit Scores and Car ShoppingGetting a Car Loan When Divorce Has Wrecked Your Credit
Divorce is often the catalyst for landing an ex-couple’s credit scores in the toilet. Last year Credit.com surveyed 526 divorced adults and found that more than 31 percent suffered a credit score drop following the break-up of their marriage. Especially for a lesser-earning spouse, or a spouse who did not work at the time of the split, securing a loan with attractive terms can be a real challenge. This can seem overwhelming if you are low on funds and need to buy a new car.
Even for those with severely damaged credit or no credit, period, all hope is not lost, says Matt Jones, Edmunds.com senior editor. “Even if your credit is wrecked in the divorce, you still have options for financing a car,” says Jones. “People with no credit are not always raked over the coals of auto financing.”
If you face a low credit score and an unreliable recent income history, it’s time to get down to business. Here’s a plan of attack for landing an auto loan with affordable terms: