Credit Tips That Work

Jason Bowen asked:


Credit repair after divorce is essential if you want to be financially sound. What often happens to the divorced parties’ credit is nothing short of tragic. Here are the things you must know in order to survive your divorce without ruining your credit rating.
If you’re considering divorce or separation, pay special attention to the status of your credit accounts. If you maintain joint accounts during this time, it’s important to make regular payments so that you won’t have to go through credit repair after divorce. As long as there’s an outstanding balance on a joint account, you and your spouse are BOTH responsible for it. After your divorce, close all joint accounts or accounts in which your former spouse was an authorized user, or ask the creditor to convert these accounts to individual accounts. By law, a creditor cannot close a joint account because of a divorce, but can do so at the request of either spouse. A creditor, however, does not have to change joint accounts to individual accounts after a divorce. The creditor can require you to reapply for credit on an individual basis and then, based on your new application, extend or deny you credit. In the case of a mortgage or home equity loan, a lender is likely to require refinancing to remove a spouse from the obligation after divorce. If you own a home together or cannot close a joint account, you may ask the creditor if they can send you duplicate statements so that you can keep tabs on the debt your ex is now paying. Better yet, if you can access the account online, you can get up-to-the-minute payment and balance details. Make sure that the divorce decree specifies that account passwords cannot be changed without your knowledge. Otherwise, you will likely have to undergo credit repair after divorce. Every credit account you have must be addressed as part of the settlement negotiation. Don’t assume that certain accounts are exempt. If you are contemplating divorce or separation and want to retain your good credit, remind yourself that you must separate your emotions from the decision-making process. The most common regret of recent divorcees is “trusting” their ex to make the right decision. Resist the urge to throw up your hands and say, “All I want is out!” or you will be in worse shape when you begin credit repair after divorce. If you need credit repair as a result of divorce (or for any reason), then you have to get help. But you don’t have to pay an attorney thousands of dollars. You can solve all your credit problems with a simple self-directed credit repair program, as recommended by the Federal Trade Commission.
Don’t leave your credit in the hands of fate–or worse yet, divorce attorneys. Prepare yourself for the worst and then take action to repair credit problems that result from your divorce or otherwise.

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