Saving your credit can be challenging, especially if your ex has finished making credit card payments.
I recently worked with Sandra, who broke up from her spouse several years ago. Her ex-husband accepted to pay off the couple’s $60,000 in credit card debt, making the agreement part of their official divorce decree. Sandra believed that was the end of that.
Sandra never thought to ask if she would get to pay for all the on-time payments she made when the two got married. Unfortunately, it wasn’t. Creditors harassed her because her ex missed payments, and on top of that, all the late payments trashed her credit. She could not even qualify for her credit card since Sandra’s ex was the main credit card holder, and she was just a secondary user on the credit account.
Sandra had a tough time when she started divorce proceedings. Her ex-husband’s advisor didn’t tell her that establishing credit in her name is crucial. If all of your information comes from joint accounts, then it can follow you even after separation or retirement! Luckily for Sandra, though – who worked with me closely over several years until finally getting control back–we were able to help get both bank accounts set up alongside establishing new personal ones, which would be more secure.
Tips on Saving Your Credit After Divorce
- Contact the Creditor
After reaching out to the creditors, we got in touch with Sandra and explained that she wanted her account handled as agreed upon.
- Follow Up
It’s essential to keep in touch with your employees. So, after our telephone conversation, we followed up by sending them a letter recapping what they discussed and asking for confirmation that the actions have been taken as requested- which is always good practice when making changes!
- Make Sure the Bills Are Getting Paid
It’s essential to keep your credit score high during divorce negotiations. Make sure you’re making all of the payments on time and ask for any compensation that may be owed, such as unpaid wages from a former spouse who did not work enough hours or was less productive than they should have been at their job while married (that would make them responsible).
- Request Documentation
It was fascinating to see how better Sandra’s credit ratings became after we asked the lender for copies of her loan statements and payment coupons. It turned out that by monitoring each check, she could tell if his ex had fallen behind on his payments before they were due-step him up early!
- Close the Account
I feel sorry to say that we cannot let you keep using the credit card in his name. We have independently investigated and found out he has been charging large amounts of money without paying off any debts. Our bank won’t approve him for an unsecured line of credit or personal loan either.
