How Can I Protect My Credit During My Illinois Divorce?

 Posted on May 19,2021 in Divorce Finances

Your marital status does not directly affect your credit score. However, that does not mean that it cannot affect it indirectly. It is not uncommon for a person to notice a difference in their credit score during and after a divorce because of all of the financial changes that this process brings. Having a decent credit score is important for a variety of reasons. Your credit score is how lenders determine whether or not they will do business with you. If your credit score takes a hit, you could have difficulty purchasing a vehicle or home, renting a place to live, or opening any other type of line of credit. Protecting your credit score should be a priority at any time, but especially during your divorce.

Steps to Take to Protect Your Credit

If you are planning to file for divorce, it is important that you pay attention to your finances. Your entire life is changing, and it is easy for something to slip through the cracks and harm your credit score. Here are a few things you can do to help protect your credit score during your divorce:

• Obtain a copy of your credit report. First, you should order copies of your credit report from all three credit-reporting bureaus. This will allow you to see exactly which accounts are linked to your credit file. Make note of all of the joint accounts that you and your spouse have. Look for any discrepancies on your credit report, such as incorrect, incomplete, or missing information.

• Close or freeze any joint accounts. You and your spouse likely have joint accounts that you both are legally responsible for. If those accounts are still open, you should consider closing or freezing them to prevent any further charges.

• Make sure your bills get paid. One of the biggest things that can cause your credit to take a hit during your divorce is unpaid bills or late payments. It is understandable that your routines for things like paying bills may be disrupted, but this can negatively reflect on your credit report if you are not careful. You should communicate with your spouse and try to make sure all of your bills are paid on time to prevent any issues with your credit or your spouse’s.

• Open a credit card in your own name. You should also begin to think about your future and building your credit score. Closing your credit cards can have a negative impact on your credit score for many reasons, but you can combat this by opening your own credit card. Choose at least one credit card to open in your name only to maintain your credit profile and begin to build your own credit.

Contact a Kane County Divorce Lawyer

Divorce is as much a financial challenge as it is an emotional one. If you are planning to file for divorce, you should discuss your plans with a knowledgeable St. Charles, IL divorce attorney. At the Goostree Law Group, we understand how important it is for you to make smart financial decisions during your divorce. To schedule a free consultation, call our office today at 630-584-4800.

Sources:

https://www.thebalance.com/will-divorce-affect-your-credit-score-960993

https://www.cnbc.com/select/what-to-do-with-credit-before-divorce/

https://www.nerdwallet.com/article/finance/protect-credit-divorce