If you are going through a divorce, one of your biggest concerns is likely to impact your credit. A divorce can be a difficult time both emotionally and financially, and you don’t want to add to that stress by worrying about your credit score. We will discuss some tips for protecting your credit during a divorce.
1. Stay on Top of Your Bills
One of the best things you can do to protect your credit during a divorce is to stay on top of your bills. Make sure you pay all of your bills on time and try not to fall behind on any payments. If you start to miss payments, it will harm your credit score.
2. Close Joint Accounts Immediately
If you have any joint accounts with your spouse, it is essential to close those accounts as soon as possible. Once the account is closed, your credit and that of your spouse cease to be together. It will help protect your credit score from any negative activity on their part.
3. Monitor your Credit Report
It is also essential to monitor your credit report during a divorce. You can request a free copy of your credit report from each of the three major credit reporting agencies once every 12 months. It will allow you to see any negative items on your report that need addressing.
4. Notify Creditors about your Divorce
If you have any creditors that you jointly hold accounts with, it is essential to notify them of your divorce. It will help to ensure that your spouse’s activity does not negatively impact your credit on the account. Again, this is something that you will want to do as soon as possible.
5. Keep Track of All Account Information
You will need to keep track of all account information, including the creditor’s name, the account number, and the balance. It will help you keep track of your credit score and ensure that no fraudulent activity takes place. It is crucial to be extra vigilant about your credit during a divorce.
6. Use your Credit Card Wisely
If you use your credit card during a divorce, make sure that you use it wisely. Try to keep your balance low and only charge what you can afford to pay off each month. It will help you avoid any financial difficulties during this already difficult time.
7. Check Your Credit Score Regularly
One of the best things you can do is regularly check your credit score. You can get a free copy of your credit report from each of the three major credit reporting agencies every year. It will allow you to track your progress and ensure that there are no negative items on your report that need addressing.
8. Update Your Address
If you are moving during a divorce, updating your address with the credit reporting agencies is essential. It will ensure that they have the most up-to-date information about where you live. If your address is not updated, it could lead to problems with your credit score.
9. Make Sure You Are Still Responsible for Debts Incurred by Your Spouse
Even if you are not living with your spouse anymore, you are still responsible for any debts they may have incurred. It includes credit cards, car loans, and mortgages. If your spouse does not pay their debts, it could negatively impact your credit score.
Let’s Get Started
Divorce can be a difficult time, both emotionally and financially. However, by following these tips, you can help protect your credit during a divorce. Staying on top of your bills, closing joint accounts immediately, monitoring your credit report, and notifying creditors about your divorce are all essential steps to take.
