Repair Credit Score

Posts Tagged ‘divorce’

Divorce can negatively impact your credit and Credit Score. Repairing credit after a divorce is common. The first step in repairing credit after a divorce is to know what accounts you have that are joint accounts. Repairing credit after divorce can be more difficult in a community property states. This is because creditors can still come after you for any debts incurred in individual accounts of your ex-spouse, making repairing credit after divorce difficult without paying off the debt in full. Most of the time, credit problem due to credit card debts is the one that needs repairing after a divorce.

Repairing credit after divorce – how to guide

When you are going through a divorce process, you need to know what accounts you have joint with your ex- spouse. The same applies to you if you are getting separated from your ex-spouse. If your ex spouse does not pay his or her bills, your credit, Credit Report and Credit Score will be affected.

In repairing your credit after a divorce, send a certified letter to the credit card companies or any lenders whose money you owe and tell them that you are getting a divorce, separated or in the process of getting a divorce. You must formally ask them to take you off the joint account for any obligations incurred after the date of that certified letter.

Repairing credit after divorce in community property states

In community property states, it is harder to repair credit after divorce. Examples of community property states are Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, and Washington). In community property states, creditors can hold any divorced couples responsible for the debts during marriage, no matter if they are in joint accounts or not.

Most couples will try to negotiate the debt settlement and divide the responsibilities between themselves. However, if the divorced couple cannot, the court will usually divide assets and debts for them. Either way, in you attempt at repairing your credit after a divorce in a community property state, creditors can still come after you for joint debts, even in individual accounts.

Question: If I have good credit and marry someone with bad credit will my Credit Score go down?

“does a wife with good credit incur the husbands bad credit upon marriage?”

Answer: I would suggest enrolling in a good Credit Repair Service that produces real results. I refer my clients to the best I’ve found. I recently had a client who needed to qualify for a mortgage with her fiance. She enrolled in the Credit Repair program and her score increased 75 points in 5 months. Now her Credit Score is higher than her fiance’s. Keep in mind that by law anything on your credit that is incorrect, out of date or unverifiable has to be removed by law. A good Credit Repair company will know what types of things can and cannot be verified. I’ve even seen bankruptcies removed from credit reports!

Credit Score Marriage & Divorce – Lesson 5