What Happens If You Need to Apply for a Loan on Your Own? | Los Angeles Divorce

Hi — I’m Tim Blankenship from Divorce661. In this article I’ll walk you through what to expect when you apply for a loan on your own after a divorce, why lenders view your application differently than when you were a couple, and practical steps you can take to improve your chances of approval. Applying solo can feel intimidating, especially if your ex handled most of the finances. But with the right preparation you can protect your credit and qualify for the loan you need.

How lenders evaluate a solo loan application

When you apply on your own, lenders focus exclusively on your individual financial profile. The three main factors they evaluate are:

• Income — Do you earn enough to support the monthly payment on the loan?
• Credit score — Your credit history determines the interest rates and terms you’ll be offered.
• Debt-to-income (DTI) ratio — Lenders compare your monthly debt obligations to your income to decide whether you can afford more debt.

If your credit history or income was previously strengthened by your spouse, you may not qualify for the same loan terms you had as a couple. That’s why it’s essential to understand these three areas and address any weak spots before you apply.

Why separating joint accounts is critical

If your name is still tied to debts your ex is responsible for and they miss a payment, it could lower your score and affect your loan application.

Lenders pull your credit report and will see any joint obligations listed in your name. Even if your divorce judgment states a debt is your ex’s responsibility, credit bureaus and lenders will consider the account a liability until the account is closed, refinanced, or otherwise removed from your credit file. That liability can make the difference between approval and denial.

Step-by-step checklist to prepare before you apply

Follow these steps to improve your odds of getting a loan on your own:

1. Review your credit reports from the three bureaus. Look for joint accounts, late payments, or debts that should have been assigned to your ex.
2. Dispute inaccuracies on your credit report and gather documentation (divorce judgment, account statements) to support your disputes.
3. Separate or close joint accounts where possible. Ask creditors to remove your name if your ex refinances or assumes the debt.
4. Pay down high-interest or revolving debt to lower your DTI and improve your credit utilization.
5. Document your income — recent pay stubs, tax returns, and proof of any other income sources.
6. Understand what monthly payment you can afford and choose loan amounts/terms that fit your budget.
7. Consider timing — if your credit was affected by divorce-related issues, waiting a few months to clean up reports and reduce debt can yield better offers.

What to bring to the lender

• Proof of income (pay stubs, W-2s, tax returns)
• Copy of your divorce judgment or agreement showing debt allocations
• Documentation of any disputes or corrections you’ve made to your credit report
• A list of monthly obligations to calculate your DTI

Real client example

We worked with a client who wanted to buy a car shortly after her divorce. She was shocked when her application was denied because her credit report showed high debt that in reality belonged to her ex. We helped her clean up the credit report, submit the divorce judgment as supporting documentation, and reapply. The second time she was approved — and with a better interest rate.

How Divorce661 helps you prepare

At Divorce661 we help clients beyond the courtroom. Our support includes:

• Reviewing your financial readiness to apply solo for a loan
• Helping separate and close joint debts
• Assisting with credit report cleanup and disputes
• Ensuring your divorce judgment is written to support future financial goals

We offer flat-fee divorce services with built-in financial planning and 100% remote support across California. Our goal is to give you clear, strategic guidance so you can move forward with confidence.

Extra tips and common questions

Can a lender remove joint liabilities after divorce?

Creditors can remove your name if the account is refinanced, paid off, or the creditor agrees to release you. Courts can assign responsibility, but the credit reporting system still reflects the account until that change is made with the creditor.

Should I get a co-signer?

A co-signer can help you qualify or get a better rate, but it also puts someone else on the hook if you miss payments. Consider this carefully and exhaust other options first.

How does DTI affect mortgage or car loan approvals?

Lower DTI improves your chances. If your DTI is high after divorce, focus on paying down debts or increasing documented income before applying.

Conclusion — take control of your financial future

Applying for a loan on your own after a divorce is manageable with preparation. Start by reviewing your credit, separating joint accounts, lowering debt, and gathering documentation that supports your financial position. If you need help navigating this process, visit divorce661.com to schedule a free consultation — we’ll help you protect your credit and move forward confidently.