Does Divorce Impacted Your Credit Score?

Divorce doesn’t directly impact your credit score. In other words, if there were two people with the same credit histories, the same jobs, and the same expenses and debts, but one was divorced and one wasn’t, they would have the same credit score. However, just because divorce isn’t a factor on its own doesn’t mean that the effects of divorce can’t impact your credit score.

The most common issue arises when it comes to joint accounts. Accounts that were previously held jointly may either no longer exist or may no longer be joint accounts. When such accounts are closed, they not only no longer affect your credit score moving forward, but they may also shorten the length of your credit history. A shorter credit history can result in a lower score. 

As accounts are closed and reopened, it may change the total credit available, the total credit used, and the mix of credit accounts, all of which impact your credit score. Although it is unlikely to be one of your top concerns at the time, do begin working on recreating your former credit profile.

Another issue comes when accounts that should have been closed or separated remain jointly held. That means your ex-spouse’s credit behavior is still associated with your credit behavior. Their late payments count against you just like they were your own, so ensure that such accounts are taken out of your name as soon as possible.

Finally, if your spouse was in charge of paying the bills or knowing where all the accounts were and how to access them, it might take you some time to understand how everything works. Unfortunately, during that time, if you miss payments, that will hurt your credit score. Fortunately, many lenders are understanding of new circumstances and will grant some leeway, so be sure to ask if you need some. Otherwise, a few missed payments here and there can be quickly overcome by a growing positive credit history.

Need help with credit repair after a divorce? Contact Key Credit Repair today and request a free consultation. We can help!