Rebuilding Your Credit After Divorce

Rebuilding Your Credit After Divorce - CreditRepair.com

Civil War general William Tecumseh Sherman who once said “War is Hell” obviously was never divorced. Few events in life can be as traumatic across the whole spectrum of our lives as divorce. Beyond the emotional, financial, and sometimes physical toll of divorce, lays the consistently ignored hit your credit takes when a marriage ends. The credit of both spouses can be negatively affected but there are steps you can take to start the credit healing process.

Begin at the End

As soon as you can, even before your divorce is final, end as many of your mutual credit relationships as possible. This protects you from both irresponsible and spiteful behavior on the part of your former spouse. The sooner financial ties are severed the better – even if you have been relying on your partner’s credit for yourself.

Make a list of all the places you believe your name is associated with your spouse and then get one or better all three of your credit reports and create a master list of everyone you need to contact and have either your name or your future former’s name removed.  Make note of your credit score and track it over at least the next 6 months to a year after your divorces is finalized.

Any debt that is in your name, even jointly, must be cleared even if that means you having to do it all on your own, because it’s your credit alone that is going to be affected going forward. If need be, create a budget that includes payments in order to remove or prevent blemishes to your record.

End at the Beginning

For many women returning to their maiden name creates a sense of closure of one chapter of their life and provides an emot

ional landmark for moving forward. However, reverting to your maiden name will not erase your married credit history, good or bad, since your credit is tied to your social security number.

Be sure to update all of your credit cards, banks and others of your change in name, address and relationship status. Starting life over as a renewed single person is also a great opportunity to start new financial relationships including new bank accounts and credit cards. These new accounts can pave the way for reestablishing your credit and credit rating as a fully independent person.

Don’t Be Shy

The most difficult aspect of being newly divorced is overcoming shyness. If you’re like most people during you marriage you became dependent upon your spouse for advice, guidance and support, and have gotten rusty and asking outsiders for assistance.

When it comes to restoring your credit history after divorce, don’t be too shy to not seek professional assistance. Professionals can help you navigate the system, work as a bridge with creditors to help facilitate debt consolidation and payment plans and generally point you in the right direction to getting your credit back on track.

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