How to Improve Your Credit After Divorce

If you suffered a nasty divorce and your credit rating has taken a big hit, you are hardly alone. Though you may not see a way out, you can indeed take some actions that will quickly get you on the road to recovery. In time, you will restore your credit and your good name.

Things You'll Need

• computer
• determination
• copies of your credit reports
• envelopes
• paper
• stamps

Instructions

1. Obtain copies of your credit reports from Experian, TransUnion and Equifax, the three major agencies that creditors use. Go through these reports, highlighting all negative items. Then highlight the ones resulting from your divorce. Send a letter to the credit bureau to notify that a divorce is the reason for these deficiencies. Creditors may take that into consideration when you apply for loans.

2. Mark any incorrect or outdated information. Send a certified letter to the credit bureau stating that the information is incorrect and why. Include any available supporting information. The bureaus have only 30 days to resolve misinformation; otherwise, they are required to remove it from your report. In certain instances, the bureaus can have up to 60 days.

3. Cancel any joint credit cards you had. Though cancellations may look bad, you can always add a comment as to the reason. Then, apply for a couple credit cards in your own name. Do not use this credit to pay for everything. Instead, reserve it only for gas or coffee, then pay off the entire amount each month. This will build your credit.

   If your credit has already suffered too much to qualify for a credit card or a loan, get a secured credit card. Though the fees are more costly, it is a vehicle to restore your credit. After six to nine months of small purchases and regular payments in full, you will begin receiving credit card offers again. Once your credit score is high enough, then cancel the secured credit card and eliminate the high fees.

Tips & Warnings

• When dealing with credit bureaus, always provide accurate information. False information will result in greater penalties than merely having bad credit.

• Do not overdo the credit cards when you start getting approved. You could end up in a worse place than before you started.

References

• CreditorWeb: Rebuilding Credit after Divorce