Repairing Your Credit after a Divorce
August 19, 2010 by Credit Attack
Filed under credit card
Going through a divorce is bad enough without adding to it all the bad credit that usually comes with divorce. Usually in a marriage there are joint accounts and these are what have to be dealt with after a divorce is final. Even some account that one spouse’s name is may be held accountable for the other spouse whose name isn’t on it because it was a debt that was made while they were married.
When you go to apply for an account when you are married, you will have the choices of three kinds of accounts to choose from. These accounts differ mostly in who can and can’t use them.
• An individual account means that only the person’s name on the account is responsible for that account and any debt associated with it. Some states, however, have laws that mandate any account made during a couple’s marriage means that the both are responsible for that account, even if just one of their names is on it. If the person whose name is on it doesn’t pay the debt, then the other spouse will be responsible for paying it.
• Having a joint account means that both you and your spouse’s names are on it. In the event of a divorce, you both are held responsible for that account. Any negative delinquencies will be reported to the credit bureau in both of your names no matter if only one made the debt.
• User accounts mean that an account is opened in one person’s name, but that person has authorized another person to use this account. If there is unpaid debt, both names go to the credit bureau.
Try to talk to your ex-spouse and see if you can come to an agreement about the debt that you both accrue during your marriage. Stress how important your credit scores are and see if ex-spouse will be negotiable.
If your ex-spouse is one of those that refuse to talk to you for any reason, another way to begin repairing your credit after a divorce is to call all your creditors and make payment arrangements. Most creditors are happy to hear from customers who have delinquent accounts and will be happy to help you. Be honest and explain your situation in trying to gain back your good credit. Going through a divorce and losing credit is an understandable situation for most creditors.
