With the number one cause of divorces today being financial reasons, it's no surprise that this is also the greatest cause of stress during and after a divorce too. Divorce can leave your financial situation precariously vulnerable if you are not careful. Our team here at Auto Credit Express knows that no one fully plans for a divorce, but sometimes bad things happen to good people. With careful thought and consideration, you can protect your finances and credit from being damaged due to divorce.
Tips To Keep Your Finances In The Green
After a divorce, you may be faced with many purchases that you need to make. Things like a home or a car will often depend on your credit standing, despite what the recent changes in your marital status are. With that in mind we've put together a few tips to consider when you are facing divorce or even after a divorce to keep your credit in the best place possible.
- Take care of joint accounts.
It's a good idea to close your accounts you shared with your ex-spouse. This includes credit cards or joint car loans. You may come across some companies that will not allow you to close out the account if there is a balance. You should freeze these accounts and make sure the company is aware that you will not be responsible for any future charges made.
- Refinance existing loans.
For loans that are in both your names, choose to refinance and put the name into the loan of whomever will be responsible for it. It some cases, such as a home mortgage, it may be easier to sell the home if neither person wants the home or cannot be approved for the refinance.
- If you don't have credit, establish some.
In a lot of cases, only one spouse really had an established line of credit. If you end up being the spouse without a credit score, now is the time to establish some. You can start with a secured credit from your bank, for instance.
- Make sure the bills are paid.
For any bills that you're not able to separate yourself from, keep a close eye on them and make sure they're paid. At the end of the day, if you cosigned an auto loan before your divorce, a defaulted bill will hurt your credit score even if you're not responsible for it. Creditors will not be concerned with a divorce as they do not have to be concerned with such matters; legally, they are still entitled to the money owed.
As We See It
It may not seem like the most important thing at the time, but down the road you'll be happy that you protected your credit from the start. Having a better financial standing will make it much easier to get the things you need. Sometimes though, your score gets hit by unexpected events. At Auto Credit Express, we can help you still. Take a few moments to complete our quick online application and we'll get in touch with you promptly. We'll find a local dealer in your area that will not only be able to help you, but will also be happy to do so. Recovering from a divorce can be difficult, but we can help you back on to your feet. Apply today and begin fresh.