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What do you know about rebuilding credit after divorce?

On Behalf of | Nov 6, 2021 | Blog, Divorce

Divorcing couples have a lot to untangle regarding their shared and individual finances. Spouses may rack up debt during their marriage, and divorce presents an excellent opportunity to improve their financial health.

InCharge Debt Solutions offers a credit-rebuilding guide for those going through a divorce. Their insights could help divorcing parties enjoy and establish financial independence.

No credit

Some spouses go their entire marriage without establishing their own line of credit. Instead, they may become authorized users on their partner’s account. Not having credit makes it hard to secure credit to navigate life after divorce. Those in this situation could get a credit report to verify their credit history.

Bad credit

A major life change like divorce may send a person into a financial tailspin. Having bad credit could make it harder to start life’s next chapter on solid ground. Credit-rebuilding solutions include paying off credit card balances and outstanding debts. If an ex-spouse’s financial irresponsibility damaged the other spouse’s credit, it may help to write a letter to the credit card bureaus explaining the circumstances. Letters do not improve a person’s credit, but they may help potential lenders, landlords and employers understand the individual’s financial circumstances.

Bad debts

Sometimes, ex-partners run up bad debts after their divorce. The bad news is that may mean both spouses bear financial responsibility for the debt. Professionals may help innocent ex-spouses explore their options for responding to bad debts. For instance, declaring bankruptcy could offer a way out.

Having good credit could make post-divorce life easier. Divorcing couples deserve to know how to set themselves up for monetary success.

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