Many people in Georgia are aware of the fact that divorce can put a strain on your finances. Going from two salaries to one is enough to prompt some re-budgeting for most people. And while couples going through a divorce are often very focused on dividing their assets — including bank accounts — and determining alimony, focusing on credit often falls to the back burner.
Your credit score, however, can be a major factor in setting the tone for your life after divorce.
Think about it for a minute. Your credit score will play a role in determining whether you will be approved to rent an apartment or buy a new home. Many employers also conduct credit checks on job candidates, so if you are looking for new work after your divorce, a good credit score is important.
Of course, divorce itself can cause your credit score to take a hit. You have less income, but more bills, so it can be difficult to keep up. Others may have no credit at all if they never had a credit card in their name alone. In either scenario, focusing on maintaining or rebuilding credit is crucial.
Fortunately, there are several ways to start working toward a good credit score after divorce, including:
- Pay your bills on time.
- Get a credit card in your name, use it and pay it off on time.
- Regularly check your credit score so you know how you are progressing.
The divorce process can be scary for many reasons, and the potential negative impact to your finances can induce major stress. It is important to know, however, that it is possible to land on your feet and be in good financial standing when all is said and done.
Source: Forbes, “Getting Divorced? Do Not Ignore Your Credit Score (and How to Rebuild it if You Did),” Emma Johnson, April 8, 2015