Divorce-Can-Send-Your-Credit-Score-Plummeting

Nashville Attorney Lisa Ewing

DIVORCE CAN SEND YOUR CREDIT SCORE PLUMMETING

Divorce certainly takes an emotional toll on couples. But it can also place a significant strain on a couple’s finances. As a recent story by U.S. News & World Report puts it, in a divorce income that previously supported one household is now spread out over two. That causes financial stress no matter how much money is involved.

If you’ve gone through a divorce, it’s time to take a closer look at your finances. The U.S. News story suggests several steps that newly divorced couples can take to make sure that their separation doesn’t destroy their financial health.

First, you need to order a copy of your credit report. You can find this report, which will tell you how much credit card debt you’re carrying and whether you’ve been cited for late or missing payments, from AnnualCreditReport.com. This is the only site from which you should order a credit report, because it’s the only one guaranteed to provide your report for free.

Once you have your report, look it over. Make sure that there aren’t any errors. If you’ve always paid your auto loan bill on time, make sure that your credit report doesn’t say that you missed two payments earlier this year. Every mistake in your credit report can cause your score to fall.

The U.S. News story also recommends that you separate your credit from that of your former spouse. Remember, if you and your former spouse as both listed as co-owners of a credit card, your credit will suffer if your ex runs up an abundance of credit card debt.

Finally, if divorce has taken a financial tool – maybe you’ve even had to file for bankruptcy protection – it’s time to start rebuilding your credit. The good news? You can boost your credit scores if you exhibit good financial behavior for a long enough time. The credit site MyFICO.com recommends that you start a new history of paying all your bills on time and reducing, as much as possible, your outstanding credit card debt. MyFICO.com also recommends that you close any open credit card accounts that you no longer use.

The financial toll that divorce can take is real. Fortunately, it is possible to recover from your credit woes. It just takes a few simple steps.