How Can Divorce Affect Your Credit Score?
Many people suffer damage to their credit score after going through a divorce, but it is not the divorce itself that causes that damage.
What exactly does cause a dip in credit among some divorcees? Below is a quick overview.
Financial troubles after a divorce
The process of getting a divorce has no influence on your credit score. However, many people who go through a divorce experience some financial difficulties in the immediate aftermath as they adjust to their new lifestyle. Losing one of your household incomes, for example, could make it harder for you to pay loans, credit cards and other bills, which would, in turn, affect your credit rating.
In addition, your credit score could be damaged if you or your spouse do not make payments on accounts you hold jointly. The judge might declare one of you responsible for the joint debt, depending on how he or she decides to split ownership of assets and debts. But if your spouse fails to make payments on those joint accounts, your creditor could hold both of you responsible.
Protecting your credit
Your credit score is primarily affected by your amount of debt and your payment history. By maintaining a positive payment history (i.e. paying your bills on time) and minimizing your debt after your divorce, you stand to reduce the potential impact your divorce will have on your credit score.
The biggest challenge many people face is adjusting their lifestyle to their reduced income. It might take some major changes, depending on your circumstances. But if you are able to make this adjustment, the impact on your credit will not be nearly as severe.
For further information and guidance on how divorce could affect your credit score, speak with an experienced Long Island attorney at Bryan L Salamone & Associates.