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Protecting Your Credit During and After Divorce
It is important to check your credit report when you are going through a divorce. The information in your report can affect your ability to receive loans in the future (when you decide to buy a house, car, appliances, or whatever). Since most banks and financial institutions use this information when deciding whether to loan you money or not, you want to take steps now to improve your chances. First, you need to find out what is contained in your report. Here is a service that offers a free report and score, in addition to a debt analysis of your situation. Get Your Equifax Credit Report Now! If there are bad marks on your report due to the negligence of your ex, contact the creditor reporting the information to see what can be done. Unfortunately, they may hold you responsible for the debt if it was a joint account. If that is the case, see if they will let you pay for half of the principle with no interest or penalties (be sure to tell them that you were never notified of this debt ). Also ask them to remove the bad rating from your file. Another thing that you want to pay attention to in your report is the address that is listed for you. For some reason, your ex’s address may appear, and this may be why you don’t receive notification of any problems. Another reason for being turned down for a loan is having too much credit available to you. If you have a lot of cards with varying limits, companies may worry that you will max out all your cards, leaving you unable to make your payments. Cancel out all the cards that you don’t use, and transfer you high interest balances to a card with a lower rate. If your cards really are maxed out, and you feel overwhelmed by debt, you need help determining what your options are. You can avoid bankruptcy by considering debt consolidation. By working with a personal loan agency, you can secure the best possible interest rates and the lowest monthly payments to help you get out of debt. Once you start getting your head above water, be careful to not add any new debts. Cut up and cancel all but one of your credit cards. Use the remaining card for emergencies only (not to buy something to lift your spirits). You can eliminate impulse spending if you use checks or cash for purchases because you can see your cash supply dwindling. To Return to Divorce and Money, click here
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