How to Get a Car Loan When Divorce Has Hurt Your Credit

Getting a divorce can have a nasty impact on your credit. Not only does moving from the “married” into the “divorced” column cost you points off your credit score, but the past (and present) behavior of your former spouse can make things even worse.

This can hurt you at a time when you are trying to rebuild your life as a single person. You may find it more difficult to qualify for the credit you need to get a home, or a car.

Edmunds.com is offering some advice for divorcees who may be having difficulty getting a car loan. Emma Johnson, creator of the blog WealthySingleMommy, wrote an article for Edmunds called “Divorce, Credit Scores and Car Shopping.” In it, she offered these tips:

“Before you step foot in a car dealership, pull your credit report and history and look for any negative scores.

Consider working with your ex to remove your name from any outstanding debts that your ex is the one responsible for, as well as the title to any vehicle you are on the title of but no longer own.

Be prepared to prove your post-divorce income.

Plan to make a decent down payment.

Tell your story: Electronically generated credit scores are not the only factor in lending decisions.”

This is all good advice, to which we’ll add: Go see your credit union first.

Not only do credit unions offer some of the best auto rates available, (usually better than banks or third-party auto finance companies), but CUs are much more likely to take your personal story into account when making a decision.