Nobody wants to go through the pain and stress of divorce. Sometimes, life just hands us only an option. Divorce marks a new phase in your life, a recovery period. To save yourself another unending paid you may need to assess your credit line to determine the status. Rebuilding your credit post-divorce requires you to be able to hold down a job and have a steady inflow of income. That’s when you can now think of rebuilding whatever is left of your credit. We are not talking about Alimony and Child Support here (even though they count), but an income that meets your monthly expenses. With an income in place, then let’s get to work!
Look into Your Credit Report and Credit Score.
A knowledge of where your credit stands and what has dredged a whole into it will help know where to start. Request your credit report from all of the three credit reporting bureaus and peruse it carefully and thoroughly. You may need the professional assistance of credit repair experts to ascertain the status of your credit. With your credit score in your view, you will know what to do or not to do.
Deal With Joint Debts that Ties You and Your Ex-Spouse.
You just have to overlook your differences and take care of those debts you accrued with your ex-partner. Regardless of whether the judge rules that the debts were as a result of his/her action, it will still affect your credit history. Restructure your debts during the divorce proceedings, the debts you are responsible for should be in your name. While the others you are not responsible for bears the name of your ex-spouse.
Never Apply For New Credit Without a Change of Last Name.
This applies to the wife, and it’s crucial. You can revert back to your maiden name before opening up new credit line. Put a call or email through to your existing creditors informing them of your change of name. Let me break your heart a bit, a change of name will not erase your credit history. What it will do is to prevent you from having a future ravaged by past history of credit.
Attend to Bills You Can’t Pay
Depending on which side of the fence you are, paying your bills during the early days of divorce could be pretty difficult. This is where financial professionals come in to assess your budget. You may decide to visit a Credit Counselling Agency to help determine the severity of your finances. It may mean you have to file for bankruptcy.
Apply For Credit Independently.
You need to apply for a new credit line and it should in your own name. Building a good credit score is to handle credit responsibly through your actions. Ensure you make payment promptly and on time. 30% is the ideal limit to keep your credit card balance. Building credit post-divorce is to apply for credit and never delay payments.