Our society relies on credit for most major purchases ,it is next to impossible to buy a house, or a new car, or even get insurance with poor credit scores, in some cases even getting a job with low credit scores is out of the question. If you are in a divorce, or considering one, it is important to understand how your credit can work for you or against you.

Credit scores are truly the life blood to borrowing money or getting credit. Low/poor credit scores, indicate you are a high risk to lend to, or give credit to, forcing banks and lenders to reject your application and make life a little more than challenging, if you need a loan or credit. Unless you are a cash buyer, poor credit means limited options.

During the divorce process it is critical to monitor your credit like a hawk, this is where most people make Hugh mistakes, Here are some examples:

1)Closing joint accounts. Ask your creditor to remove your name or the name of your spouse. To do this you must ask for a name delete assumtion.If OK’d this procss will eliminate your spouse from the account.The person that ends up owning the account may have to qualify for the account.Unfortunatley you will not be able to do this with credit cards.

2)Opening new accounts in your name only. In most cases this is a very smart idea if your still in control of your finances, and credit.This will prevent problems later, if your credit does turn for the worse, in the course of your divorce you may still be able to keep the accounts that are established and paid on time.

3)Set up a fraud alert on the 3 credit bureaus Transunion, Equifax,and Experian,they will notify you of any new account being opened or any new activity,such as increases in your spending. Basicly provide you with a warning system letting you know of any unusual activity.

4)If you are left with joint accounts,that are not suppose to be your responsiblity by the courts, you are still financially obligated to pay them even if they are joint,you must/should receive updated statements, this prevents you from not knowing if the account is being paid on time, or is falling behind, you may have to pay the account if you care about your credit,this is for your benefit, not your spouses.

5)Change all your PIN numbers and e-mail passwords. Security is critical when you are trying to keep your credit in order. Separating all your accounts will prevent future problems, from you’re soon to be ex-spouse.

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You can visit my web site for more information about this and other divorce related issues:@

www.mydivorceplanning .com

Thank you

Pete Kici

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