Don’t Be Wedded to Bad Credit Scores After Divorce

Amid all the stress and complications that usually accompany a divorce, some things are bound to get lost in the shuffle. However, couples that forget to untangle their finances before untying the knot may find their credit scores in disarray.

In “Don’t Let Divorce Ruin Your Credit Scores,” the experts at FreeScore look at some of the ways couples are reunited through shared financial accounts.

The blog post cites an article on MSN Money that offers some helpful information on managing finances after a divorce.

• Create a post-divorce budget – In a household with shared finances, going from two incomes to just one can be quite an adjustment for some people. The sooner you tackle this problem, the better. Adjusting to living on a reduced budget can keep you from spending beyond your means and incurring credit card debt or defaulting on other payments. And since you may be looking for a new residence, keeping your credit scores intact is even more vital.
• Untangle joint accounts – Some people believe that once a divorce is final, joint accounts are split as well. Unfortunately, removing yourself from a joint account requires going through the lender. Paying off joint accounts and closing them before the divorce is recommended. If that is not possible, converting them into individual accounts is the next best thing. Having your name on an account that someone else is responsible for is risky and could lead to lower credit scores.
• Keep tabs on joint accounts – In certain cases, joint accounts can’t be separated. If this is the case, ask your lender to send you a copy of all account statements each month, even if you aren’t the one responsible for making payments. You should also pull your credit report at regular intervals to ensure all accounts are being paid on time.

To access your three credit scores and reports anytime you need them, sign up for FreeScore. When you use the Power of 3, you’ll also receive 24/7 credit monitoring and automatic alerts that notify you if any suspicious activity is detected on one of your accounts. By staying in control of your credit, you can make a difficult transition period a lot easier.