Rehabilitating your credit during and post-divorce

You may or may not have paid close attention to the state of your credit score during the course of your marriage. Regardless of whether or not you have in the past, it is critically important that you pay attention to it now that you are either seeking a divorce or have recently finalized one. As you begin to build your financial foundation as a single individual, your credit score will almost certainly impact many of the financial decisions you will be able to make moving forward.

If your credit score is less than stellar, do not panic. You can rehabilitate your score over time. There are many ways that you can work towards rehabilitating your score. In general, it is important to pay your bills on time, to avoid a grossly imbalanced debt ratio and to pay close attention to all of your financial accounts.

It is worth noting that there is not one “right” formula that works for everyone who is trying to rehabilitate their credit scores. For example, it is generally important to avoid maxing out credit cards. However, if you absolutely must due to some sort of true emergency, you must make the healthiest call for you at any given moment.

In addition, it is important to avoid throwing in the towel when you have setbacks. Remember that credit card that you needed to max out due to a true emergency? Don’t give up trying to rehabilitate your score simply because it has taken a hit due to a maxed out card. Continue working to make progress towards a healthier score and you will likely achieve the goal you are aiming for as soon as is possible.

Source: Forbes, “Getting Divorced? Do Not Ignore Your Credit Score (and How to Rebuild it if You Did),” Emma Johnson, April 8, 2015

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