Credit problems often arise after a divorce, especially with the absolution of joint accounts and possible bankruptcies. When you divorce, all joint debts are still the responsibility of both parties and if one defaults on financial obligations, then the other will be left holding the bill. Repairing your credit after divorce should be first priority in reclaiming your life as an individual.
Step 1
Refinance your home if you will be the one residing there. Having your name as the only borrower on a mortgage can prevent any further financial activity from your ex-spouse. This will keep you in control of your home and raise your credit rating with prompt timely payments which will help repair your credit rating.
Step 2
Consult a credit counselor during divorce proceedings. This will ensure that agreement is made concerning joint debts and who is to pay them. The counselor can also help you with debt consolidation for any accounts that have negatively impacted both parties credit reports.
Step 3
Order a copy of your credit report from all three main credit reporting agencies, Experian, Equifax, and TransUnion. Examine your credit report fully to look for any negative influences that are the responsibility or your former spouse and file a dispute to have this removed. Placing a consumer statement on each item will also help potential lenders understand the situation, decreasing your risk for credit denial. To order your reports go to annualcreditreport.com.
Step 4
Check your credit reports in 90 days to confirm that all negative standings in your ex spouse's name have been removed. If they have not then you may want to add further consumer comments or contact any judicial branch that placed judgment regarding liens or garnishments on your ex-spouse.
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