How to Fix My Credit After Divorce

Divorce is difficult under the best circumstances and separating finances during and after a divorce may reflect unfavorably on your credit report. Lenders, insurance companies and even employers may use your credit report to evaluate your reliability in financial situations. While there is no "quick fix" for your credit score, reestablishing a solid history of borrowing and repayment will improve your credit report, resulting in more favorable loan terms and opportunities. The sooner you establish positive credit in your own name the faster your credit score will improve.

Instructions

1

Continue paying on existing joint accounts. You are still liable for the debt, and delinquent payments will reflect negatively on your credit score. Do not depend on your former spouse to make payments, even if he agreed to pay.

2

Separate existing joint accounts as soon as possible. If you or your spouse is unable to pay off a joint account, request that the account be closed to prevent any new charges. Additionally, remove your ex as an authorized user on any accounts and request that your name be removed as an authorized user on any of his accounts.

3

Send copies of court-ordered payment decrees to your creditors and credit-reporting agencies. Ideally, your assets and liabilities were divided as part of the divorce decree. If the judge ordered your ex-spouse to pay off all or a portion of a particular debt, notify creditors. Include proof of any payments for which you are responsible, in addition to your former spouse's liabilities.

4

Request a copy of your credit report from all three major credit-reporting agencies. By law, you are entitled to a free copy of your credit report from Experian, TransUnion and Equifax once a year. Obtain a copy of each by calling 1-877-322-8228. Check the report for errors and contact the credit-reporting agency and your creditors to correct inaccurate information. Be aware that you may still be liable for joint accounts. However, if you were only an authorized use on your former spouse's account, you have no obligation to pay.

5

Establish a personal credit history. Department store cards, bank loans and credit cards all help rebuild your credit. You must use the accounts and pay the bill on time to build a solid payment history. Keep your balances low and pay more than the minimum amount due to give your credit score a boost.

6

Apply for a secured credit card, if are denied a loan due to bad credit. Like a debit card, your card use is limited to how much money you put into the account. Plan to pay off the entire balance each month, as secured credit cards have notoriously high interest rates. Once you establish a solid payment history, apply for an unsecured, lower-interest-rate credit card.