Dr. Judith Gerhart, CFP
Certified Divorce Financial Analyst 
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Finances a Mess because of Divorce?
November 22, 2008
1. Pay all of your bills, especially your credit cards, car loan, student loans and monthly mortgage payments, on time.
Each time one of your creditors or lenders reports a late payment to the credit bureaus, your credit score takes a negative hit which won’t begin to rebound until you’ve demonstrated a track record of three, six or 12 months of consistent on-time payments.
2. Don’t apply for multiple credit cards or other types of loans within a short time period.
Having multiple inquiries appear on your credit reports, regardless of whether your application(s) are approved or denied, will have a negative impact on your credit score.
3. On each of your credit cards, keep your outstanding balance less than 35 percent of your overall credit line.
For example, if your credit limit is $1,000 on a credit card, keep your month-to-month balance under $350.
4. Don’t allow any of your bills to be turned over to a collections agency due to lack of payment.
This includes utility bills, cellular phone bills and medical bills. Having a collections account listed on your credit report causes a significant drop in your credit score.
5. Have any erroneous or out-of-date information on your credit reports removed.
Most trade lines will remain on your credit report for seven years. After that period, you can have the information removed by contacting the credit bureaus. If you notice errors on your credit report, contact the creditor or lender, plus file a dispute with the credit bureaus.
By: Jason Rich
Posted by Judith Gerhart on November 22, 2008 | Permalink | Post a comment
Topics: Divorce, Finance, Tips |
