Rebuilding Credit After Divorce

Why Credit Suffers After Divorce

Divorce can impact your credit in several ways: closed joint accounts, missed payments during proceedings, high legal expenses on credit cards, and reduced income to pay bills.

Step 1: Check Your Credit Reports

Get free reports from all three bureaus at AnnualCreditReport.com. Look for:

• Joint accounts still showing
• Ex-spouse listed as authorized user
• Errors or inaccurate information
• Accounts you don't recognize

Step 2: Separate Joint Accounts

• Close or remove ex-spouse from joint credit cards
• Refinance joint loans in one person's name
• Remove authorized users
• Open new accounts in your name only

Step 3: Build Your Credit Score

• Pay all bills on time (set up auto-pay)
• Keep credit card balances below 30% of limit
• Don't close old accounts (hurts length of credit history)
• Consider a secured credit card if starting fresh
• Become an authorized user on a trusted friend/family card

Timeline to Recovery

• 6 months: See improvement with consistent payments
• 12-18 months: Significant score increase possible
• 2-3 years: Full recovery to good/excellent credit