Following a divorce, it’s common for people to see a drop in their credit score as a result of making simple mistakes when separating financial and credit accounts from their previous spouse. Outstanding bills sometimes get lost and go unpaid; accounts wind up going to collection agencies; and misunderstandings about financial settlements and who’s responsible for what, lead to problems with creditors and lenders.       

While you can’t change what might have happened in the past, you can take an aggressive and conscientious role to fix your current credit-related problems, which could take six to 12 months (or longer), depending on the severity of your situation. The thing to understand, however, is that there are seldom quick fixes or instant solutions for boosting your credit score or repairing your credit.       

Knowing that newly single people require good credit to obtain a mortgage, get approved for a car loan, or to acquire new credit cards solely in their name, for example, there are many companies out there promoting quick and miraculous fixes to credit problems. Unfortunately, the majority of these easy solutions are costly and typically outright scams. 


UNDERSTAND YOUR SITUATION   

Your credit score is calculated by each of the three major credit reporting agencies (credit bureaus) based exclusively on information listed within your credit reports. Your credit reports are compiled based on ongoing information provided by your creditors and lenders. It includes details about your account balances, total credit lines and how they’re being utilized, and your payment history.       

To begin improving your credit score, start by requesting free copies of your credit reports from each credit bureau – Equifax, Experian and TransUnion – and review them carefully. The easiest and fastest way to do this is by visiting the www.annualcreditreport.com Web site. Avoid other like-sounding Web sites that charge for credit reports or that insist you subscribe to a monthly credit monitoring service in order to obtain a free copy of your credit report.       

Pinpoint any errors and have those errors corrected immediately. Legitimate errors can be corrected or removed within 30 to 60 days by filing a “dispute” with each credit bureau. The easiest way to do this is online. Fixing errors should result in a boost to your credit score.       

Next, begin paying your monthly bills on time. Late payments for car loans, credit cards, mortgages and student loans, for example, will cause your credit score to drop significantly. It’s also essential that you keep all of your existing overdue bills from being turned over to collection agencies. Work with your creditors and lenders to develop payment plans that you can afford.       

Once negative but accurate information is posted to your credit reports, your credit score will take a negative hit, plus it could take up to seven years to get that negative information removed.