Divorce is a difficult time for just about everyone, but facing credit struggles after the fact makes it all the more challenging. Credit errors and adverse reports accrued during a marriage can harm your overall credit score, making it harder to acquire much-needed financing. Rebuilding credit after divorce seems daunting, but with the right plan, it is easier than you might think.
Below, we will explore several ways you can soothe one lingering headache of divorce: bad credit.
1. Repair and Dispute
One crucial step toward rebuilding credit in any scenario is to remove errors and negative marks. After a divorce, credit repair services can be invaluable: These services dispute errors, remove inaccuracies, and remove unverifiable reports. They eliminate collections, late payments, chargebacks, and more from your credit report. Millions of consumers struggle with errors on their credit reports. After divorce, credit repair is all the more critical. Repair services can review and remove such black marks from your report.
The Coulter Credit team has helped thousands of people who struggle with errors, inconsistencies, and false claims to remove these bad marks from their reports. Even if you think you don’t qualify, our services are proven effective in reducing the impact of poor credit reports. According to the Federal Trade Commission, 79% of credit reports contain errors. Our repair services, on average, result in 65% of disputed items receiving corrections or being removed completely.
2. Separate Your Credit & Notify Creditors
Separating your credit could become a complex process if not done correctly. So what is the best way to separate your credit after divorce? Follow these vital steps.
- You should close any joint accounts you shared with your spouse. Doing so will ensure your ex-spouse does not accumulate more debts on a shared account, for which you will be held responsible.
- Notify your creditors with certified letters proving the divorce. This will inform them that you are no longer responsible for the ex-spouse’s debts and also gives you a record in case you need to dispute any debts accrued after the divorce. Rebuilding credit after divorce is impossible if you fail to do this and your former partner continues to accumulate debt.
3. Building BACK UP
Once you have repaired your credit errors and notified creditors, we advise you to develop a plan to rebuild your credit. You can do this by receiving new credit and making sure you can make your payments on time. Credit cards are the most immediately impactful in boosting your credit, but we recommend remaining vigilant about what you spend and being able to repay your debts on time.
3) Building BACK UP
It’s never too late to begin rebuilding credit after divorce. With a clear plan and a willingness to make changes, you can build better credit and escape the long-lasting hassle of a painful divorce. Coulter Credit has financial experts who can help you build up to your best credit, and our team offers free consultations to help show you how to rebuild in this trying time.