How to Rebuild Your Credit Score After a Divorce
There are many things in life that could change a credit score. There is a chance that it may plummet in various cases. One such case is divorce. Other times it may be due to a missed payment or you applied for a new credit card. You might also find that your score dropped because you closed an old account or because your credit card company lowered your credit limit. No matter what happens in your life, your credit score should always be in the back of your mind. Divorces happen, but that does not mean that you can rebuild your credit score.
One of the first things you should do is take a look at your credit score. You can check them on one of three credit bureaus. Even if you are not in the middle of a divorce, the credit score will let you check on which loans you have in your name, as well as what credit cards you have in your possession. If you disagree with anything on your credit report, be sure to dispute it.
It is essential to continue to make all payments on time, even if they are not your debts. If you have a credit card in your name, but your spouse used it to purchase something months back, you are still responsible for paying for it. A lender will often think that if an individual is able to make their credit card payments, they will be able to pay back any other loans or credit card payments they have.
While on the subject of paying bills on time, remember to pay all bills when they are due. It is not just credit card companies or lenders that will contact the credit bureaus. You need to pay medical bills, car insurance, property taxes, utility bills, and other bills you are sent if you are not good at remembering to make payments, set up auto payments, or see if your bank sends reminders for certain bills if you sign up for it.
Do you have your own credit history? If not, it is time to start thinking about it. If you do not have your own credit card or a loan in your name, now may be the time to get one. Even if you are an authorized user on an ex-spouse’s account, if your name is taken off those accounts, chances are your credit score will take a plunge.
There are many credit cards that are perfect for those that are just trying to establish their credit. Some do not have any annual fees, while others will offer a percentage of cash back at restaurants and gas stations. Other cards provide points that can be redeemed for cash or money off your total payment due.
And finally, you will want to keep your credit utilization low. It is a good idea to keep it below 30%. If your rate is higher than this, start now to pay them down. Even adding a few extra dollars onto the minimum due will get that rate down faster than just paying the minimum due each month.
If you are concerned about your credit score and wish to learn more about credit repair, contact Super Credit Repair in Clearwater, FL. They can help you understand why you should want to focus on increasing your credit score and other methods of repairing it.