How divorce can indirectly impact your credit

How divorce can indirectly impact your credit

| Apr 12, 2019 | Divorce |

Divorce will have many impacts on your life, including your financial life. But, these impacts will not be direct when it comes to your credit score. A credit report does not mention whether or not you are married, which means filing for a divorce will not reduce your credit score. There will, however, be indirect impacts from the divorce that hurt your score.

Have you decided to keep the home in the divorce? This could be a bad idea if you still have a mortgage. Why? The mortgage will need to be refinanced in order to remove your former spouse, which puts all of the debt on you and your credit. That’s why it’s best to sell the family home and split the proceeds.

A drop in income most often happens when both spouses had jobs while married. When you get divorced, you will drop down to just one income. This can impact your ability to get a loan of any kind, could reduce your credit card limits and could lower your credit score.

If your spouse fails to disclose all of their debt during a divorce, your credit score can be impacted immensely. It’s possible that the two of you could be listed on the account that has a balance you never knew about when filing for divorce.

Your credit score will take a hit when you get a divorce if you let the financial aspects of the divorce affect it. You need to understand the various issues that can hurt you financially when getting a divorce so they do not wind up hurting your credit score too.