Did you know you might need to perform credit repair after divorce? Essentially, if you have gone through or are going through a divorce, you might concern yourself with child custody rights, asset division, and other weighty matters. Of course, you will want to take good care of your interests. However, you might be so focused on these matters that you completely forget how the divorce might affect your credit score.
Although a divorce will not affect your credit reports or credit score directly, it might make your credit worse than it was when you were marriage. More often than not, most couples have joint credit accounts between them. To finalize your divorce, therefore, you need to either close your joint credit account or go the extra step and remove your ex’s name from the account.
Divorce and Credit Repair
Most couples run into serious financial problems a couple of months after they get divorced. This happens when one of the partners makes late payments or fails to make payments on the account they used to share with their ex.
These late payments will appear on the credit reports of both the account holders – despite existing divorce decrees. When such records appear on your report, your credit rating will be seriously negated.
To avoid these sorts of issues, therefore, you should refinance or close all your shared accounts. This is because shared mortgages, loans, and credit cards will continue being joint responsibilities until you resolve the problem with the financial institution concerned.
Apart from the emotional strain divorce causes, you might also have to contend with all manner of financial problems. Of course, it was your decision to co-sign loans and share accounts with your former spouse. However, when divorce comes a-calling, they will prove to be a source of major headaches.
Use the following credit repair after divorce tips and tricks to avoid the financial damage that will show up on your report:
- Manage Shared Accounts
Although it is not always possible to refinance or close all your shared loans after you get divorced, there are things you can do to reduce the negative impact these loans will have on your credit report.
Large loans and mortgages, in particular, are difficult to refinance. In such a situation, therefore, it is imperative that you work closely with your ex to manage all shared accounts. Remember, the reports of both parties will be affected negatively if either fails to manage the account responsibly.
Manage the shared debt by:
– Setting up an online account
– Building independent credit history by getting a new credit card
- Protect Your Identity
Disgruntled spouses tend to damage their exes’ credit using the personal information they have on them. To this end, you might want to expedite the credit repair after divorce by protecting your birth date, Social Security Number, and any other financial detail your ex might use against you.
Start by signing up for credit monitoring so that you are alerted immediately there are changes in your credit data. You should also watch out for all suspicious signs and mail that new credit accounts have been opened using your name.
Additionally, consider changing all your online banking passwords. If possible, ask your banks to change your account numbers. Of course, if you suspect that you have fallen prey to identity theft, get in touch with the credit bureaus immediately and place fraud alerts on all your credit reports.
Overall, performing credit repair after divorce isn’t all that hard. So long as you remain vigilant, try to work things out with your spouse, and react to all threats to your credit score with expedited attention, you should be good to go.