When it comes to your upcoming divorce, you want to avoid any problems that could make it hard for you to make a life for yourself after your divorce is over. For instance, if you neglect your credit score, you might have problems taking out loans for things like a new vehicle or a new home. Making sure you have strong credit could be essential to your post-divorce life.
By taking a few key steps during and after your divorce to fortify your credit, you may better prepare yourself to live as a single person once again. You might also defuse financial problems that could catch you by surprise following your divorce. Forbes describes how to conduct these steps.
Get a copy of your credit report
First, access your credit report. Make sure it has a list of your obligations and not just your credit score. A complete credit report can alert you to debts and liens that you may have forgotten about. You can also sort out which debts are yours and which ones you share with your spouse. If you do share a debt, make sure your divorce settlement addresses how you and your spouse will pay it off. This may help keep creditors from coming after you for debt payments later on.
Begin building your own credit
If your spouse has taken on the financial responsibility for your household, you might have little to no credit to your name. To build your own credit history, you will need to set up your own credit accounts, such as a credit card in your name. However, spending too much in debt may hurt you early on. Some people handle this issue by applying for a secured credit card that has a small limit to help them start building credit.
Check your credit report over time
Your divorce is bound to change your finances in a major way, and that will almost certainly affect what is on your credit report. Unfortunately, sometimes credit bureaus make mistakes and place debts on a report that do not belong there, which could lower your credit score. Monitoring your credit report on a continual basis during and following your divorce may alert you to errors before they cause a problem and allow you a chance to correct them.