In the midst of a Pennsylvania divorce, many spouses focus exclusively on the property division aspects of their settlement. They may believe that the outcome of that process will leave them in great financial shape and that they have little need to worry about their credit. For spouses who have not played a primary role in the family’s finances, they may have very little in the way of a credit history or have poor credit from previous financial blunders. Regardless of where one’s credit score sits, there is always room for improvement, even if a property division outcome is very favorable.
The best way to begin improving upon one’s credit score is to gain access to a current report from all three credit bureaus. Check carefully for any errors or for old information that should have aged off of the report. If there are any inaccuracies or omissions, take the time to go through the process of challenging those entries.
Next, it is important to establish new credit in one’s own name. Shop for one or two new credit cards, and pay close attention to the interest rate and terms offered. Use those accounts to make modest purchases, always keeping the balance well below half of the available credit limit and always paying the bills on time. Soon, credit scores will begin to rise based on this new activity.
No matter how well a Pennsylvania spouse will do during the property division phase of a divorce, the importance of having good credit cannot be overstated. By following the simple approach outlined above, it is possible to improve one’s credit and be in a great position to obtain new credit if and when needed. It is impossible to predict the future, and having access to a loan or credit card if an emergency or unexpected need arises is crucial to maintaining financial stability.
Source: moneytalksnews.com, “10 Financial Moves That Keep You Sane During a Divorce“, Marilyn Lewis, July 23, 2015
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