As you go through a divorce, your credit score may be the last thing on your mind. Unfortunately, failure to review account for your credit score could result in significant damage to your credit report and require credit repair. Many marriages involve commingling of assets and loan accounts. Many folks focus on the assets but fail to understand the impact of how marital debts are agreed upon. With an individual account, a creditor only considers your credit score when deciding if they want to extend a line of credit to you. You can have your own accounts if you are married and if you are single. In most states, the account will report only on your credit reports and on the reports of any authorized users (authorized users can be added to individual accounts). If you live in a community property state, both you and your spouse may be responsible for debts incurred during your marriage and one spouses accounts might report on the other spouse's credit reports. Since no one else will negatively impact these accounts, you can remain in control of the status of your accounts and credit. However, if you do not qualify separately, individual accounts may not be an option. The person listed on the account is the sole individual responsible for the balance under that account. Issues surrounding authorized users can also complicate resolution of individual accounts. A creditor that reports a joint account must report it on both parties' credit reports. Former spouses can potentially do damage their ex-spouses credit score by neglecting joint account debts. One spouse could take advantage of the other spouse by failing to pay some bills in a timely manner or by additional spending even after the divorce has been finalized. As such, it is important to agree upon the joint accounts in the divorce proceedings. When it comes to your joint accounts, you do have some options. You can decide to close the joint accounts. The decline in your credit score based upon the closing of an account may be barely noticeable when compared to the harm caused by a former spouse.If possible, resolve all outstanding debts with lenders. This might be easier said than done, but if this option exists, you should use it. It could eliminate the debt in question, which will help your overall credit score, but it will also eliminate the risk of damage caused by a former spouse. If possible, contact your creditors and see if the joint accounts can be separated. This will protect you from former spouse payment and spending abuse and also protect you from drops in your credit score based on the closing of an aged credit line. Keep in mind that a lender cannot close a joint account simply because the individuals are divorcing. Another option could be to place a freeze on those joint accounts. Freezing an account means the balance remains and continues to accrue interest, but future use of the credit line is prevented. This allows the parties to pay the outstanding balance without having to worry about any credit line abuse by the former spouse. All debts should be resolved in the divorce proceeding so no one is left guessing as to what they are required to maintain.Here's some additional information:Credit Repair with OvationCredit Repair with OvationRepair Credit Reports with OvationCredit Repair with Ovation
By: Stokes
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