For example, you always see the sleazy car ads "No credit, bad credit, divorce, no problem!".
So does getting a divorce screw up your credit? If so why/how? Is there any way to avoid it and come out with your credit intact? What if you have a business line of credit...would it be affected? Thanks in advance!
2007-10-09 07:38:43 · 6 answers · asked by Mega G 1 in Business & Finance ➔ Credit
Divorce only screws up credit if one or both of you don't pay the bills on time.
My divorce didn't hurt my credit at all.
2007-10-09 07:43:00 · answer #1 · answered by bdancer222 7 · 0⤊ 0⤋
It can work against a person who has no personal credit history. Especially when it was more common for a woman to rely on her husband's credit, and when the home, cars, credit cards and everything were in his name. After a divorce she would come out of it with 0 credit history.
2007-10-09 07:46:39 · answer #2 · answered by ninsianna 2 · 0⤊ 0⤋
When you obtained credit, you and your spouse signed a contract agreeing to pay your bills. A divorce decree doesn't change that contract. When you divorce, each of you remains fully liable for your debts.
Thus, if your ex-spouse runs up bills or damages his/her credit, it also affects yours. That's why it's important to contact creditors and try to work out which bills belong to whom; also to close joint accounts.
2007-10-09 07:48:18 · answer #3 · answered by Anonymous · 0⤊ 0⤋
Two ways.
(1) He says: I'm not going to make the payment until the court rules that the bill is my responsibility.
She says: I'm not going to make the payment until the court rules that the bill is my responsibility
Result: the creditor doesn't get paid and reports the account as delinquent and both take a hit on the credit score.
(2) He and/or she try to maintain the same lifestyle on only one income, get overextended and crash.
2007-10-09 07:50:40 · answer #4 · answered by Ted 7 · 0⤊ 0⤋
Divorce in itself does not ruin your credit, but often the split/remaining balances are not well tended, and often fall behind.
2007-10-09 07:41:57 · answer #5 · answered by nkozyra 2 · 1⤊ 0⤋
you send a letter to the three credit reference agencies with a letter of disassociation with your spouse and inform them you have divorced that way your credit record will be safe and your other halfs debts wont affect you at all
2007-10-09 08:02:08 · answer #6 · answered by Anonymous · 0⤊ 0⤋