February 18, 2019

Like the United States, divorce rates in Canada are approaching 50 percent. That means nearly 1 in 2 relationships will end in that messy battle between two angry partners. Things get heated and both parties can want to get the other in a position that hurts. And, while it’s not often thought about while in the midst of a divorce, it can damage your credit score. How does divorce hurt your credit?

Multiple situations can happen that lead to a credit score that suffers a blow. In every dissolved relationship, whether common-law or married, the potential is right there to fall prey to bad credit. Here are a few situations.

Missed Payments

In the heat of a divorce, both parties lose their focus on everyday events, like paying the bills and ensuring there’s money in the account. Maybe both people think the other should make the payments and, as a result, no one does. In the end, unpaid bills can hurt both parties. Missed payments register on your credit report and will make lenders wary. Will you default on their payments as well? Are you a risky customer? It can take years to repair the damage of missed payments during a divorce.

Wage Garnishments

You may not agree with the judgment against you. Let’s face it — divorce payments can stretch over decades and can severely cramp your lifestyle. Maybe it’s easier not to pay, or maybe you just don’t wish to pay anymore.
If you don’t pay your spousal or child support payments, it can come down to garnished wages and collections agencies. That looks brutal on your credit bureau and is a huge red flag for lenders. While you may be tempted to stick it to your ex, you’re doing damage to yourself.


If you’ve been ‘awarded’ the house and the car in your divorce, it can feel like a victory, but the battle has just begun. Now you’re left to pay for big-ticket items on just one income, and it can be overwhelming and inescapable. When you’re over-extended on credit or debt, it feels like you’re drowning. All you want is to keep your head above water.
It can often be best to liquidate the larger assets for a clean break and a clean credit slate.

If you’ve gone through a divorce, or are in the heat of battle now, you’re not alone. Car Loans Now can help you secure financing for a vehicle, regardless of your state of affairs. Good credit, bad credit, or no credit, we are real people helping other real people like you.