How to Rebuild Your Credit After a Michigan Divorce

 Posted on February 22,2019 in Divorce

Getting a divorce can be financially costly. With court costs, filing fees and attorney’s fees, the expenses can add up quickly. These are in addition to any other financial issues you may be facing as a result of the divorce, like the monetary impact of going from two incomes to one and selling your shared home. 

Divorce can put a financial strain on even the most affluent couples, and it is not uncommon for people to come out of a divorce with debt or damaged credit. Having good credit is key for obtaining loans for things such as homes or cars, so having a good credit score is pretty important after you are divorced. 

Here are a few tips to help you rebuild your credit after your divorce:

Keep a Budget

The first thing you should do after your divorce is figuring out what your new budget is. Prior to your divorce, you may have had two incomes to support your family. Now that you are single, you are only working with one income for all of your expenses. Make sure you have budgeted enough for you to pay all of your bills and still have some left over for savings.

Take Care of the Credit You Do Have

Chances are, you probably have some sort of credit after your divorce. Before you start trying to rebuild your credit, you should make sure you are taking care of the credit that you already have. Start by pulling your credit report from the top three credit bureaus. Once you have an idea of what your credit score is, make sure you maintain that credit score by closing all of your joint accounts with your spouse and paying all of your bills on time.

Build Your Own Credit

Now, you can begin building your own credit in your own name. The easiest way to begin rebuilding your credit is by opening a credit card. Use the credit card for small purchases and make sure you pay it off every month on time. It is important that you do not rack up debt that you cannot pay or that will negatively impact your credit score. 

Contact a Novi, MI Divorce Attorney Today

A divorce can wreak havoc on even the most financially healthy couple, but a savvy divorce attorney can help you minimize the impact that a divorce can have on your finances. At Elkouri Heath, PLC, we know how expensive divorces can be and how that can put a strain on your newly-single life. Our skilled Oakland County divorce lawyers can help you figure out what your best plan of action would be so that you leave your marriage under the best possible circumstances. Call our office today at 248-344-9700 to set up a free consultation.

Sources:

https://www.thebalance.com/how-to-rebuild-your-credit-after-divorce-960366

https://www.experian.com/blogs/ask-experian/credit-education/life-events/divorce-and-credit/