Divorce can be very scary. People don't suffer only psychologically, but financially too. Huge financial problems may rise after divorce and they have to be solved! Many people, especially stay-at-home moms who have never had a job or their own credit accounts are extremely frustrated and confused. It seems that they have too many questions about their financial situation on their minds! They wonder whether they have a credit history and credit score and if they can apply for a credit card. Do you have similar questions after divorce? Here are the answers to these difficult questions!
Even if you think that you have no credit because you have never had your own credit account, in reality you do have a credit history! If you and your husband took a mortgage together or had a joint account, the history of your payments will be reported on both of your reports; it doesn't matter who applied or paid for credit!
Were you an authorized user of your spouse's credit card? If so, then you are not even responsible for the credit card debt that your husband or wife may have, but the credit history will still be reported in your name too.
This will work to your advantage only if your spouse is a wise cardholder and has a good credit. Otherwise, your credit score can be badly damaged! In any case, you should start establishing your own credit history!
First of all you have to remember that both of you have a responsibility to pay off the debt on your joint accounts, so it is a good idea to put a credit freeze on all of them until you decide who is going to pay for what.
If you have difficulties getting a regular credit card, you should consider secured credit card! If you want to get this plastic, you should deposit some money to your bank account as a security. This sum becomes your credit line. Secured cards are pretty easy to get and can be perfect for building good and stable credit history. But you should use this plastic with great responsibility, because your paying information will be reported to all major credit bureaus, that's why you should really prove yourself as a responsible borrower!
If you want to get a car after your divorce, you can do it without problems! The lender makes the risk low, by securing your loan with your car. As you can see a car loan can help you to build a credit history as well!
It is very difficult to start new and independent life after divorce, but you simply have to do it! Now you are fully responsible for your finances, build your history meticulously and slowly. Take control of your own life!
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