One of the more practical concerns many people face after a divorce is their credit score. Between marital debt, financing a household on one income, and establishing new credit in your own name, divorcees should pay close attention to their credit standing. The higher your credit score is, the simpler it will be to rent an apartment or finance a vehicle. The following are tips to help you establish credit or repair your credit score after divorce.
Know What You are Working With
It is impossible to build healthy credit without knowing what you are up against. Credit scores are a source of angst for many Americans. Men and women who left the finances to their ex-spouse may have no idea where their credit stands. Creating a plan to establish or rebuild your credit begins with an accurate, up-to-date credit report. Several easy-to-use websites offer free access to your credit report and e-mail alerts anytime your report changes, so you will never be surprised.
Check your credit report to ensure everything is accurate and current. If you do find errors or your ex-spouse’s information or accounts are still showing up on your report, contact the credit bureau. Information on how to dispute errors is available on your credit report.
Build a Credit History
If everything was in your ex-spouse’s name and you are starting from scratch, it is time to establish your own credit history. The best way to do this is to apply for a credit card. Try your bank or local department store and use this new credit wisely. Buy what you can afford to pay for with cash and make regular, monthly payments on time. To show credit diversity, consider applying for a small secured loan with your savings account as collateral.
Stay on Top of Your Bills
Even though money is often tight after a marriage ends, it is important to pay your bills on time. Mortgage or rent, car payments, and credit card bills have the greatest impact on your credit, so make those a priority. Until you get established in this new stage of life, you may need to make sacrifices to pay your monthly bills. However, over time, as your credit health improves, it will be well worth it.
Pay Down Your Debt
Your debt ratio is the amount of debt you owe divided by the total credit available. It accounts for 30 percent of your credit score. Paying down existing debt is a relatively quick and effective away to raise your credit score. If you have a significant amount of debt, hold off on acquiring more. It may not be easy but waiting for a better time to finance a new car or charge those expensive shoes will be beneficial.
Towson Divorce Lawyers at Huesman, Jones & Miles, LLC Help Clients with Complex Financial Disputes
Aside from the emotional rollercoaster that comes with divorce, the financial reality after a marriage ends can be just as stressful. Towson divorce lawyers at Huesman, Jones & Miles, LLC help clients resolve tough disputes. Repairing your credit after a divorce is one step to a healthy start. Let our team guide you toward the best possible outcome in every aspect of your divorce. To schedule a free initial consultation, call 443-589-0150 or contact us online. Located in Hunt Valley and Towson, Maryland, we serve clients throughout the state.