You can order credit reports directly from the bureaus’ websites for a small fee, or you can order one free report per year from each bureau through www.annualcreditreport.com. It’s probably a good idea to order new reports after the divorce is final and after all joint accounts have been closed, just to make sure nothing is amiss.
Apply for a credit card to establish your own credit
Your credit score may decrease after your divorce, particularly if you don’t have accounts in only your name. To minimize any reduction, apply for your own credit card, preferably before your divorce is finalized and your score takes a hit. Pay down your balances on time to create a positive payment record and be careful not to charge more than you can pay back by the end of the month. Incurring debt and racking up interest charges during a divorce can make a bad financial situation even worse.
Protect your credit standing
One of the first things divorcing couples should do is separate their finances. This means closing joint bank and credit card accounts and opening new accounts in their own names. Be sure all closed accounts are fully paid off, even if it means transferring balances to your new account and paying them off yourself. That’s because late or stopped payments by either party on a joint account–open or closed–will damage both of your credit ratings. Also, if you share a mortgage or other valuable property, make sure your interests are protected in the divorce settlement. These measures can help prevent an economically struggling or vindictive spouse from amassing debt that could ruin your credit.
For additional financial considerations related to divorce, visit Practical Money Skills for Life, Visa Inc.’s free personal financial management site.