Individuals who have the most trouble securing a car loan after divorce are generally those whose spouses were the proverbial “bread-winners.” Without being able to rely on someone with higher income to cosign the financing agreement, they may face a harder time getting approved for a post-divorce auto loan. Still, the situation is rarely grave. You may not be able to get an auto loan from your preferred banking institution, since they are likely to demand high income and credit score requirements; however, there are lenders who can help, and we can help you find the one that fits you best. Just apply online for financing pre-approval.
Pre-Divorce Car Loans, Post-Divorce
While you were married it was a simple thing to cosign a bad credit auto loan with your spouse. You were a couple and it only made sense to help each other as much as possible. Now that you are divorced, things could get a little tricky, because no matter who the loan is attributed to in the decree, you are both still responsible for it credit wise.
While that is not what you want to hear, it is steeped in law. A loan is approved based on the information provided when it is originated (the loan application). Once the loan is made and all paper work is signed, it becomes a binding contract. Since you entered into a binding contract for a loan, the lender can still hold both persons that signed the contract jointly and individually responsible for the loan, despite any outside agreements or judgments made after the binding contract was signed.
Unfortunately, that means that late payments or repossession will be reported to the credit bureaus under all social security numbers involved and will lower the credit scores of both parties. There is no way to avoid it other than to make sure all payments are on time.