Fighting Your Way Back After Divorce: Repairing Credit

Friday, July 15th, 2016

If you’re separated, divorced, or facing a split in the future, you might know that your relationship is not the only casualty in this scenario. Too often, the ending of a marriage will also impact your credit score. But it doesn’t have to be that way. Here are some things to keep in mind if you’re trying to repair your credit post-divorce.

• Making payments on time is essential. Even if you’re fighting with your spouse, or ex spouse, about who is responsible for paying certain accounts, such as credit cards, car loans, business loans, student loans, or personal loans, it’s important that someone keeps on making the payments. You can decide later who is going to pay the other person back, or who will ultimately be responsible for the debt. But the most important factor for your credit score is that all payments are made on time. This counts for about 30% of your entire credit score. So make sure those checks keep going out.

• Don’t let debts pile up. Another factor in your credit score is how much debt you carry relative to the amount of credit you have available. This is known as your debt-to-credit ratio, and it’s the second-most important factor in your credit score, also accounting for about 30% of the total. Keep this rule in mind: your credit limit is not the amount it’s okay to spend. You should keep your total debt to less than 30% of your credit limit. Ten percent is even better. That means you could have a $10,000 limit on your credit card, and you should try not to keep more than $3,000 in revolving debt on it from month to month.

• Keep your accounts open. Having a long credit history also helps your credit score. If you close your credit card account that you’ve had for a while, you are hurting yourself. The longer the better is the rule when it comes to your credit accounts. Talk to your spouse or your ex about whether to close joint accounts, or take one of your names off and leave the account open. It’s best to separate out your affairs, but if you can keep from closing accounts, that’s for the best.

• Try to have more than one type of debt. Another thing that helps your credit score is having a mix of types of debt. That means in addition to a credit card, you could have a car loan, a student loan, a personal loan from a bank, or a mortgage. Don’t take on a bunch of debt just for the sake of having a nicely mixed range of creditors, but do keep in mind that different kinds of debt are generally good for your credit score.

• Be careful about opening new accounts. You might want to apply for a new credit card or two now that you’re fancy free and no longer stuck in your dead end relationship. But don’t apply for too many new credit cards at once. Too much new credit is a red flag for credit bureaus. So be prudent about those applications.

Keep in mind that no matter how bad your credit is, with some time, it can be good again – even great. In seven to ten years, your bad credit could be completely repaired.

Latest Bad Credit Cards Guides

The Top 3 Ways To Turn Bad Credit Into Good Credit October 5th, 2017

Having a good credit score is essential if you want to do things like get the lowest possible interest rate on your mortgage or be approved for an elite rewards credit card. Some potential employers will even check your credit history before offering you a job. So, if your ...
Continue »

5 Ways To Pull Your Credit Score Out Of The Basement February 27th, 2017

If you’ve been turned down for a credit card you wanted, it could be because your credit score isn’t so great. A low credit score can shut you out of being approved for the very best rewards credit cards, the lowest APRs, not to mention a mortgage or other type of loan.
Continue »

Why Bad Credit Isn’t the End of the World January 30th, 2016

If your credit score is in the cellar, you may feel like it’s a problem you’ll never be able to solve.
Continue »

Why You Need to Check Your Credit Report Regularly June 8th, 2015

You might think you have good credit—and you could be right. But if you aren’t checking your credit report regularly, you might not know if there is something on your credit report dragging your score down.
Continue »

Great Credit Cards for Bad Credit November 17th, 2014

If your credit is below the “good credit” benchmark of 700, you might think the only credit cards available to you are “bad credit cards.” But if that’s what you think, there’s good news: there are many great credit cards available for people with no-so-great credit.
Continue »

Best Credit Offer
First Access Visa
Check off the cards you want to compare. Then click the Compare link to go to the comparison table.
Consumer Rating: 4 / 5
Horizon Card Services Horizon Gold Credit Card
Copyright © 2001-2017 BestCreditOffers.com All Rights Reserved.

* The BestCreditOffers.com webpage is a free service and an information resource for credit cards and financial products and services available to eligible United States consumers. BestCreditOffers.com does not offer any warranties and is not a direct service. There are no guarantees for approval or offers when applying for a credit card. Please refer to the application if you would like more information on each credit card. When you click "Apply" for a particular credit card, please take the time to review the terms and conditions of the product/service at the issuer's website. All logos on the BestCreditOffers.com website are property of their respective owners.

Disclaimer: This editorial content is not provided or commissioned by the credit card issuer. Opinions expressed here are the author's alone, not those of the credit card issuer, and have not been reviewed, approved or otherwise endorsed by the credit card issuer. Reasonable efforts are made to present accurate info, however all info is presented without warranty. Consult a card's issuing bank for terms & conditions.

BestCreditOffers.com makes every effort to keep information up to date and accurate. However, the information regularly changes and is presented without warranty. Therefore, we strongly recommend all our readers to visit the credit card application page by clicking "Apply Online!" button to review the detailed credit card's terms and conditions. Note that BestCreditOffers.com may be compensated by the credit card issuers when the readers apply for a credit card through this site.

BestCreditOffers.com is an independent, advertising-supported website which receives compensation from the credit card issuers and companies whose offers appear on the site. Compensation may impact how and where products appear on our site, including, for example, the order in which they may appear on the site pages. BestCreditOffers.com does not review or list all available financial or credit offers.

Disclosure: Not an access card.

User Generated Content Disclaimer: These responses are not provided or commissioned by the bank advertiser. Responses have not been reviewed, approved or otherwise endorsed by the bank advertiser. It is not the bank advertiser's responsibility to ensure all posts and/or questions are answered.