Credit Woes after the Split

Once you obtain a copy of your credit report, double check it for errors,” advises Stewart. “Sometimes, your credit history may be confused with someone else who has a similar name.”

Another good idea is to meet with a consumer credit counseling representative. He or she can provide you with tools to negotiate with your creditors and also give you some useful suggestions for paying your bills. If things spiral downward to the point where you can’t get your own credit card, open a secured credit arrangement with your bank.

“If you deposit a specific sum of cash with a bank (such as $500), the bank will sometimes provide you with a secured credit card,” says Stewart. “Making timely payments will help to repair your credit over time, as well.” 

Another good tip: try mitigating the impact of any derogatory credit you may have on your credit report by adding positive account information to your credit file. “Start by contacting creditors with whom you have a good credit relationship and give them permission to release your account information to credit reporting agencies,” says Stewart. “Be sure to also contact credit reporting agencies and provide them with the names and telephone numbers of the creditors with whom you have good credit.”

For a small fee, most credit reporting agencies will call your creditors and add the positive account information to your file. One point of caution. There is no shortage of frauds and scam artists out there who will promise you a perfect credit score or guarantee a Visa gold card only if you “act now." The Better Business Bureau recommends conducting some gumshoe due diligence before forking any money over to a credit repair or credit card company.

The two best ways to do that are to contact your state’s attorney general’s office or local Better Business Bureau to see if the firm you’re dealing with has any complaints or lawsuits against it. Be especially wary of firms that demand money in advance. In general, you’ll be responsible for any debt acquired during the marriage, even if you didn’t run up the debt yourself.

Before sitting down with an attorney, think about which debts were contracted prior to marriage (separate debt) and which ones were contracted during the marriage (marriage debt). Make sure that the divorce settlement states who will be responsible for paying off all debts. Don’t forget about credit card debt.

Either signer on a joint credit card can be held responsible for 100 percent of the debt, not just one-half of the debt. Above all, use your divorce as a wake-up call to figure out what's wrong with your finances and fix it. If you didn't have enough savings to survive a job loss or other setback after you’re on your own, get serious about establishing an emergency fund. If your problem was overspending, get serious about creating and sticking to a budget.  


Brian O’Connell is  freelance writer and author. A single father of three, he has authored 15 books and has bylines in major national publications. To learn more about Brian, go to www.brianoc.com.