SANTA MONICA, Calif., March 3, 2015 /PRNewswire/ -- People who are planning to shop for a car should be taking steps to check and possibly boost their credit ahead of time. This may be especially important for people who are recently divorced, says car shopping website Edmunds.com.
Last year Credit.com surveyed 526 divorced adults and found that 31 percent suffered a credit score drop following the break-up of their marriage. A poor credit score can saddle a car shopper with a higher interest loan and possibly make it difficult to finance the car at all.
Emma Johnson, noted personal finance expert and creator of the popular blog WealthySingleMommy, covered this topic for Edmunds.com in an article called "Divorce, Credit Scores and Car Shopping." The article included 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.
"If you understand the details of your credit history before speaking with a lender, you'll be able to make a stronger case for your qualifications as a borrower," reports Johnson. "Worst case scenario, if you are forced to accept a loan with a high interest rate, you can always refinance or buy another vehicle under better terms in a few years when you are back on your feet and your credit has improved."
About Edmunds.com, Inc. Car-shopping website Edmunds.com serves nearly 18 million visitors each month. With Edmunds.com Price Promise®, shoppers can get an instant, upfront price for cars and trucks currently for sale at 10,000 dealer franchises across the U.S. Car shoppers can browse not only inventory listings at Edmunds.com and on its acclaimed apps, but also comprehensive car reviews, shopping tips, photos, videos and feature stories. Named by Maritz Research as one of the most trusted online consumer review sites – and the only automotive site listed in the top ten – Edmunds.com welcomes all car-shopping questions on its free Live Help Line at 1-855-782-4711 and [email protected], via text at ED411 and on Twitter and Facebook. Based in Santa Monica with a satellite office in downtown Detroit, Edmunds.com can also be found on Pinterest, LinkedIn, Instagram, and Google+ and Flipboard.