Effect of Divorce on Credit Score
Being divorced is not a reason for damage.
How a divorce can affect a credit
Divorce does not directly harm your credit but have an indirect impact to financial problems affects your credit negatively. For example, the loss of one of two household incomes may result in a financial delay that could result in the loss of credit cards, loans and other accounts. Missing payments may result in a decrease in your creditworthiness.
Divorce can affect your credit rating if you do not make payments to the accounts you share with the previous one. In some divorce cases, the judge declares to the spouse responsible for the joint duty. If the spouse does not make the payment, the creditor will add a delayed payment to both credit reports.The original credit card or loan agreement still exists and any loss of payment will affect all people listed on your account.
Protect your credit after a divorce | Effect of Divorce on Credit Score
Your payment history and the level of debt are the two most important factors affecting your credit rating.The key to keeping your credit worthiness intact is maintaining a positive payment history and minimizing debts during and after divorce.
Make an adjustment on your lifestyle to suit your low income. living on two incomes can be difficult to shorten your life to match your income. It may require you moving to a cheaper flat to curtail your expenses. If you can no longer pay the car loan. you can refinance the loan or sell your vehicle.
When you have a strong less spending plan it can help you adjust. Create a budget to find out what you can afford and what you can not afford. Set priorities for your most important expenses and keep payments that have a direct impact on your credit score
Cover your basic income expenses, not including child support | Effect of Divorce on Credit Score
Deal with joint debts: make a secure men of your financial ties with your spouse as soon as the divorce is close. This makes the financial transition much easier. Review the credit report and take advantage of the recent account statements, listing all accounts owned jointly. Close these accounts in writing and by phone to get extra protection then ask the creditor not to open them again.
Remove the status of an authorized spouse user from your credit card.
Every ex-husband must work to obtain a debt for which he is responsible in his own name. You can do this by refinancing the loans and transferring the balances from your credit card to another credit card. If you and your spouse can not work out these details together, lawyers can come to a better agreement. Try to at least minimize payments on accounts that affect your credit.
Be aware of all payment especially if your spouse is responsible for paying bills on your behalf. Keep track of payment dates and check that your payment is close to the due date.
To protect your credit, make the minimum payment. Loan monitoring is often recommended as a way to learn about late payments. However, as long as the credit monitoring service does not warn you about the late payment, it has already been added to the credit report. Since payment delays are not reported to the credit bureaus for a 30-day delay, you have time to pay before it affects your loan.