Fixing Credit Reports After Divorce, How To improve Credit Score After the Marriage Fails

Depending on your situation,(I suggest), fixing credit before a divorce is final is of the utmost importance.

It's always best if a divorce judgment includes a deadline for the joint credit card debt to be paid in full by each spouse. Action would need to be taken if one spouse does not pay off a joint credit card debt. If a joint account stays open, both spouses are liable for any new charges, even if they are made after the divorce is final. The new debt and any problems associated with nonpayment will then show on both parties' credit reports. The innocent spouse can then become the target of the creditor's efforts to collect. Since fixing credit in such cases becomes much more difficult, there should always be some language included in a divorce judgment to protect an ex-spouse in case the other spouse declares bankruptcy before paying off the credit card debts.

Therefore, prior to the divorce judgment, to identify all joint debts for both parties order your free credit reports from all three credit reporting bureaus. You can request these by calling 1-877-322-8228 or contacting annualcreditreport.com. The reports should be checked carefully to make sure that any debt that hasn't been paid off in full will be allocated to one of the spouses at the final divorce judgment. If either spouse has an account for which the other party is an authorized signer, the authorization should be rescinded.

After divorce, if you have been refused credit, which constitutes an "adverse action" against you, you have 60 days to ask for your report after receiving the notice. You must send the reporting bureau a "dispute letter" notifying them of the items you think are in error. Circle any items you are disputing on a copy of the report. Include copies of any documents that furnish proof of your dispute and send the letter by certified mail, requesting a return receipt. Make sure you have copies of what you sent.

Assuming your reports were, or are now, accurate, you may want to check the state of your credit card(s). To slowly raise your score, pay as much as you can on the card with the largest balance to get it down to 30% of its limit. Don't close out any of your cards, but try to use them lightly in the future so the banks won't close them out. It may still be possible to refinance credit card debt by applying for a new credit card and request a balance transfer. Some banks still offer this.