Protecting Your Credit Before, During and After a Divorce

TAKE CONTROL. It is important for divorcing couples to understand early on that if they have joint debt, their credit ratings are inextricably linked until they separate their obligations. Therefore it is in their mutual self-interest to make payments on time. A bad credit score makes it difficult for both parties to move on. The time to act is before there has been a missed payment. Divorce is stressful and can sometimes lead to erratic financial behavior on the part of a spouse. It is therefore advisable for divorcing persons to take control of payments that affect their credit rating as soon as possible.

Sunday
Jan122014

How to protect your all-important credit score during divorce

Regardless of what your divorce decree says or what's fair, if you have a joint debt, you're responsible for it. So it's important to take the following steps to protect your score: Identify all joint accounts. A good way to do this is

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Sunday
Jan122014

Why credit bureaus will disregard your divorce decree

Credit scores matter because they measure for businesses what sort of a credit risk you are. They are "the driving force" in determining how much you will pay for a loan. The higher your risk (i.e., the lower your score), the more money you will pay to borrow — whether for a mortgage, auto loan, or credit card. The most widely recognized credit score is FICO, computed by Fair Isaac & Co. In the U.S., your FICO score is based on

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Sunday
Jan122014

You may be divorced but your home isn't 

Most divorcing couples believe that a divorce decree can relieve a spouse of a joint financial obligation. Not true! Court orders and divorce decrees can't save divorcing couples from financial peril if one or both spouses act irresponsibly. "People have a naive expectation toward court orders, like

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