Fixing your credit after divorce in California

The financial impact of divorce often goes beyond the cost of the process itself. For many people, divorce can also impact their credit rating. However, it is possible to rebuild credit after your California divorce is finalized.

How a divorce might impact your credit score

Between the costs of the divorce process, the change in income to pay for expenses and the responsibility to pay debts that might not originally have been yours, divorce can sometimes make your credit score take a dive. Some of the ways divorce can impact your score include:

• Having to borrow money to pay for the divorce
• Using your credit cards and running up their balances to pay for bills after the divorce
• Becoming responsible for your ex-spouse’s debt whether through the divorce decree or because they ran up debt in your name
• Struggling with balancing your finances after the divorce

Tips for increasing your credit score after the divorce

If you need to increase your credit score, you must be proactive about your finances. You will need to get a realistic look at your credit history by requesting your credit reports from the reporting agencies. Once you are familiar with your history, some of the steps you can take to improve your credit include:

• Address any errors or inaccuracies in the reports by filing a dispute
• Begin paying down credit cards with high balances
• Make sure joint debts are being paid, even if part of it is assigned to your ex-spouse
• Apply for a credit card, if you do not have one, to begin building credit
• Create a budget that fits with your income, even if that means giving up some things

Your actions after the divorce will go a long way toward fixing your credit score. It might take time, but if you are patient, responsible and resilient, you will see your credit score grow and your financial situation strengthened.