Did the Divorce Affect Your Credit Score?

Are you recently divorced or divorced for a while?using an asset or your savings as collateral. The same
Rebuilding or continuing your credit after divorce mayapplies here, make your payments on time every
not seem like a priority right now, especially if you're stillmonth and do not carry any balances in your rebuilding
healing from your marriage ending. If you eventuallyphase. You will begin to build a consistent credit history,
want to obtain credit cards in your name, finance awhich will increase your Credit Score and make it
vehicle or home, and even begin a new job, you needeasier to be approved for unsecured credit in the
to make sure that you have a good CREDIT SCORE.future.
Why? Your Credit Score will affect your ability to getStep 3.
a loan, rent a house, or get hired for that job. You haveMake Your Payments On Time
to have the highest Credit Score possible for whereYour Great Credit Score is built on longevity of timely
you are today.payments so, the longer you pay your bills on time, the
Following are my top Pre and Post Divorce Credithigher your score will be. Money can be scarce after
Repair Score Tips:o Cancel all joint credit carddivorce or at any time, and sometimes you will have to
accounts from your marriage. This will safeguard yourjuggle your bill payments.
credit record in case your ex-husband decides to useFollowing are my personal recommendations for the
them. If the debts are in both of your names, it willorder in which to pay your bills:
remain a liability to you until they're paid off.o All1. Mortgage or Rent payments
accounts you had while using your husband's surnameThis is one of the heaviest weighted items in the
should be changed to the name you are using now.scoring algorithm. So, make sure you make these
This will help to rebuild your Credit Score.o Begin topayments on time or your Credit Score will suffer
start a personal relationship with a bank and banker ofgreatly.
your choice that you did not do business with while2. Car, Motorcycle, Boat etc. Loans
married. Open a new account or maybe a small CD.oIf you depend on your car for various activities, keep
Quickly establish accounts in your name, so you canthese payments current. If not, you run the risk of it
begin to rebuild your credit.being repossessed.
These are the exact ones I utilize when I coach my3. Credit Cards
private Credit Score Clients.You want to pay these in full or make the minimum
Step 1.payment by the due date. Credit Card accounts are
What's Your Credit Score Today?now (in allot of cases) being reported after they are 5
Order a copy of your credit reports. Make sure to getdays late. This will also keep your interest rates from
a copy from the top 3 Credit Bureau Providers asrising and help you avoid late fees.
information varies greatly. Make sure all the information4. Utility Bills
is correct on YOU and that the division of debts isYou will want to pay the minimum required to make
accurately reflected.sure your utility services continue. Reconsider what
If there are errors on your report, you may want toutilities you have. If you need to cutback, cable and
contact a reputable Credit Repair Firm to assist youland line phones are always an option to cut out.
with this because it can be a challenge at times. If you5. Health and Auto Insurance Premiums
want to do it yourself, contact all the creditors and theIf you have an auto many states require auto
bureaus and supply them with the proof they request.insurance, this is a bill you need to make sure gets paid.
After all the correcting and updating is completed,With Health Insurance, you might want to raise your
order your report again in 3 months to ensure thatdeductible to lower your monthly premium.
everything is being reported correctly and nothing has6. Secured Debts
re-appeared. (It happens frequently)Beware of these. If they don't get paid, the creditor
Step 2.can repossess the asset that was used to secure the
Do You have your own Credit Score? If not, Establishloan. If you absolutely can't make the payment, you
Credit In Your Own Name.need to see if you can give the asset to the creditor
If you do great! Continue to build a good Credit Score.without it hurting your credit.
You can follow my tips from below.7. Unsecured Debts
If you don't have a Credit Score established in yourThese include all other debts. Like, to your attorney,
own name, begin rebuilding today. Now is the time todoctor, hospital, and any other service provider or
get started.professionals. Most often, as long as you pay a small
You might not qualify for a major credit card right now,amount monthly, these accounts will be fine. If you
that's ok. You might want to consider applying for aabsolutely can't make that months payment, contact
store credit card or a gas credit card. If you'rethem and usually they will work something out with
approved, charge a small amount monthly and pay it inyou.
full on time. Now you are beginning to build a greatStep 4.
Credit Score.Pay Down Your Debts
Another way to start building an outstanding CreditA high debt ratio hurts your credit score. The most
Score in your own name is by applying for a securedeffective way to improve your score is by not
credit card or taking out a small loan at a bank, andcarrying a balance or paying down your debts.