Working on Building Credit in Your Name
Being married carries many responsibilities as a couple. One of these responsibilities is applying for loans and credit as a couple. What happens when you divorce? You would then have to deal with the emotional and legal ties that bind you to your spouse.
For existing loans and credit, let your divorce lawyers work out the details on how to clean up the loans. Just make sure that the credit history of your spouse is taken into account. As an individual, you should start reestablishing your name. No longer will you be responsible for your spouse as a credit partner. One advantage in getting a divorce is that the credit bureau is unable to record negative accounts against you.
The first step you should take is to get your free annual credit report. Work with your lawyer to have all joint accounts closed. Transfer all your assets to your name. If your spouse has an extension credit card under your account, have it canceled, with the knowledge of your spouse, of course.
Building your credit basically means maintaining good financial records with all credit transactions you will now undertake as a single, unattached individual. There are some measures you can do to make sure your credit remains in good standing.
For one, pay your bills on time. Avoid depending on your credit card for regular purchases. The interest rate can get pretty steep if you only pay the minimum. Use cash whenever possible.
If you decide to get another credit card with lower interest to pay off your existing cards, look for cards that offer cash back on spending as well. Avoid promotional traps that promise low rates and waived annual fees because that it is just what it is — a promotion. Most probably, it will be effective only for a limited period, and then it gets jacked up. Before you know it, you have a card with high annual fees and interest rates. Find out more from Credit-land.Com.
Take your time. Avoid hasty decisions. When applying for your credit, be honest. I would advise going to the bank you were doing business with before you got divorced. If you have a good record with them, they will be more than willing to approve your application. Just check out their rates first.
Building a good credit always starts with a solid foundation. If you are unsure of signing on the dotted line, wait. Sleep on it and ask the opinions of trusted family members and friends.