Although getting a divorce does not directly affect your credit score or credit history, it does indirectly affect your credit score. If you have joint financial obligations with your spouse, you’ll want to handle their dissolution properly in order to lessen the negative effect it may have on your credit. You may be wondering how to obtain a car loan once you have been through a divorce and your credit score is in poor standing.
Car loans in Halifax are the easiest type of loan to fix in the case of a divorce. Many reputable car companies will refinance your vehicle, and remove your spouse’s name from the loan in the process. Not only will this ensure that the loan is solely in your name, but you may be able to refinance your vehicle at a lower percentage rate than it was originally.
You may want to trade it your car for another vehicle, and finance that car in your name. This is a great way to make sure that your payments will not affect your former spouse in anyway. Also, by having their name removed, they will not be able to come and reclaim the car.
Many couples assume that when their divorce decree indicates one party to pay off a credit card, the other party is no longer associated with the card. The credit card company, however, still has both names attached to the card. This means that if one person is delinquent on a payment or fails to make payments at all, both parties will receive a negative mark on their credit report. The best way to prevent this from happening is to take your name off all credit card accounts that you are not forced to pay. This will ensure that your credit is intact when applying for loans in the future.
If you have recently experienced a divorce and need to refinance your auto loan in Nova Scotia, be sure to call an experienced representative that can walk you through the process. At Loan Doctor in Nova Scotia, we can get you approved for a car loan in your name, and get you back on track to repairing your credit.