It’s not uncommon for people to face credit problems after a divorce. It may be a challenge to pay your bills on one income. You may be stuck with debts left over from the marriage. Your spouse may have been the one with the good credit, so you may never have tried to establish credit in your name.
A good credit score is important to help you rebuild your life. If you have a good credit score, it can be easier to obtain credit and you will get better terms for a mortgage or to purchase a new car. Credit scores can also be used for insurance quotes, obtaining rental homes or utilities, and even job applications in some cases.
The first thing to do to build your credit after a divorce is to review your credit report to see what information it contains. There are three credit bureaus, each of which has reports, and you can obtain all three at annualcreditreport.com. Once you receive your reports, you will want to look for errors. Make sure none of your ex-spouse’s information or accounts are on the report. If you do find errors, contact the credit bureau to have it corrected. Also, if there are any accounts that should have been closed during a divorce, but are still open, you should contact the creditors to close the accounts.
The next step is to start establishing your own credit history. You can do this with a small credit card that you pay on time. Keeping a low balance and paying it on-time can help build your credit rating. You should also ignore the impulse to accrue new debt.