{"id":8580,"date":"2022-09-18T13:18:47","date_gmt":"2022-09-18T12:18:47","guid":{"rendered":"https:\/\/blinkx.com\/?p=8580"},"modified":"2023-08-24T16:19:08","modified_gmt":"2023-08-24T15:19:08","slug":"does-divorce-hurt-your-credit","status":"publish","type":"post","link":"https:\/\/businessfinancenews.com\/credit\/does-divorce-hurt-your-credit\/","title":{"rendered":"Does Divorce Hurt Your Credit"},"content":{"rendered":"\n<h2 class=\"wp-block-heading\">Does Divorce Hurt Your Credit<\/h2>\n\n\n\n<p>does divorce hurt your credit? The process of divorce is never an easy one\u2014the emotional toll that comes with ending a marriage can significantly impact many areas of your life, whether that\u2019s your living arrangements, your finances or\u2014if you\u2019re a parent\u2014your children.\u00a0<\/p>\n\n\n\n<p>In the midst of all this, you might be wondering what a divorce means for your credit. While a divorce doesn\u2019t directly affect your credit score, your credit can suffer as an indirect result of how you and your ex-spouse handle your finances following a divorce.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">What happens to your credit after a divorce?<\/h2>\n\n\n\n<p>Changing your marital status doesn\u2019t impact your credit score. But the big financial changes that come with a divorce can potentially result in a change to your score. Whether it\u2019s because a lower overall income results in missed bill payments or because you wind up in debt once the proceedings are finished, there are a few things you should be aware of when it comes to what could happen to your credit following a divorce.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Joint accounts remain on your credit reports<\/h3>\n\n\n\n<p>If you have any joint credit accounts with your ex-spouse, they won\u2019t automatically be split in two just because you get a divorce. Both you and your ex-spouse are still responsible for repaying the debt, and the account will still be reported on both of your credit reports.&nbsp;<\/p>\n\n\n\n<p>You might be dealing with any or all of these types of joint accounts:<\/p>\n\n\n\n<p><strong>Joint mortgages:&nbsp;<\/strong>A mortgage can be one of the trickiest accounts to deal with. One option is to refinance the mortgage into the name of the spouse who is keeping the house if they can qualify for a loan as an individual. If neither of you can afford to take on the mortgage on your own, you may have no choice but to sell the home and split the profits.<\/p>\n\n\n\n<p><strong>Joint credit cards:&nbsp;<\/strong>It\u2019s recommended that you settle all joint credit card debt before you finalize your divorce. This can be done either by paying off the joint accounts together or by dividing the debt between the two of you and transferring the balances to new credit cards in each of your names.<\/p>\n\n\n\n<p><strong>Joint auto loans:&nbsp;<\/strong>If you and your spouse share a joint auto loan, one of the best options is to refinance the loan into the name of the spouse who intends to keep the car. This way, the spouse who isn\u2019t keeping the car won\u2019t be affected by the activity on the account.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Divorce decrees won\u2019t void lender contracts<\/h3>\n\n\n\n<p>During your divorce, the court will issue a divorce decree, which assigns the division of your marital assets and debt between you and your spouse. It dictates who is responsible for different debts, as well as any debts that may remain shared. The only issue is that divorce decrees don\u2019t matter to creditors\u2014they aren\u2019t required to abide by them when it comes to debt collection.&nbsp;<\/p>\n\n\n\n<p>This means that even if a judge declares your ex-spouse responsible for paying off a joint account, your credit is still on the line. If your ex-spouse either doesn\u2019t pay or pays late, that negative information will show up on not only their credit report, but yours as well.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Ways a divorce could indirectly impact your credit score<\/h2>\n\n\n\n<p>Costly attorney fees, a change to your credit mix and age and an inability to keep up with your credit card payments are just a few of the potential indirect effects of a divorce. Take stock of some things you might have to face financially following a divorce.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">The cost of divorce could set you back<\/h3>\n\n\n\n<p>The reality of divorce is that it\u2019s not cheap\u2014the average cost of a divorce is $12,900. It\u2019s important to be aware of the associated fees and expenses you\u2019ll need to pay for during court proceedings. Expenses will vary depending on various factors of your divorce, but the costs can add up quickly. These factors can include:<\/p>\n\n\n\n<ul><li>Your state<\/li><li>The cost of your divorce attorney&nbsp;<\/li><li>Whether or not you\u2019re dealing with child support or child custody&nbsp;<\/li><li>Whether or not you\u2019re required to pay alimony, a court-ordered obligation to provide financial support to your ex-spouse after a divorce (keep in mind that any late alimony payments will be reflected on your credit report and potentially damage your credit score)&nbsp;<\/li><li>Whether or not you take your divorce to trial in court<\/li><\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">Joint credit accounts could damage your score<\/h3>\n\n\n\n<p>As mentioned before, a divorce won\u2019t absolve you of your responsibility to make payments on any joint credit accounts you have with your ex-spouse. Even if you do your due diligence and make timely payments, any missed payments made by your ex-spouse will still be tied to your name. All activity on joint credit accounts will continue to be reported to the credit bureaus and show up on your credit report, whether the missed payments were your fault or not. Since payment history accounts for 30 percent of your credit score, any late payments will cause a\u00a0drop in your score.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">You might be unable to pay your bills<\/h3>\n\n\n\n<p>Divorce can be costly, and if you end up having to shell out significant amounts of money to fund your divorce proceedings, you may find yourself with new debt that you weren\u2019t prepared for. Additionally, if your ex-spouse was the primary breadwinner, your income as an individual may not be enough to cover all of your typical expenses.&nbsp;<\/p>\n\n\n\n<p>If your reduced income as a newly single individual doesn\u2019t allow you to keep up with your usual bill payments, you may find yourself missing payments. Late payments will more than likely cause a drop in your credit score.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Your credit utilization could go up<\/h3>\n\n\n\n<p>Even if you manage to make your payments on time every month, your reduced income as a single person could cause you to rely more heavily on credit cards to fund your lifestyle. Another factor in your credit score is your credit utilization ratio, or the amount of credit borrowed compared to your maximum credit limit.&nbsp;<\/p>\n\n\n\n<p>If you\u2019re supplementing your expenses with credit cards, you could end up using too much of your credit and causing your credit utilization ratio to increase. This can damage your credit score if you aren\u2019t careful with how much credit you\u2019re borrowing.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Your credit age could change<\/h3>\n\n\n\n<p>Another factor in your credit score is your credit age, which accounts for 15 percent of your score. Credit age refers to the length of your credit history, and credit bureaus like to see a higher credit age because it provides a better view of your overall credit history and behavior.&nbsp;<\/p>\n\n\n\n<p>If you end up refinancing debts or taking out new loans without your ex-spouse\u2019s name attached to them, you\u2019ll end up with a lower credit age as a result. This could cause your credit to take a hit if you previously had joint accounts that are no longer part of your\u00a0credit history.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Your credit mix could change<\/h3>\n\n\n\n<p>Your credit mix refers to the different forms of credit accounts tied to your names, such as credit cards, auto loans or a mortgage. Your credit mix accounts for 10 percent of your credit score, and credit bureaus favor those with a higher mix of credit accounts if you manage them all responsibly.&nbsp;<\/p>\n\n\n\n<p>Following a divorce, you may find yourself with a lower credit mix if your restructured credit accounts leave you with fewer accounts tied to your name than when you were married. While the impact of credit mix on your overall credit score can be minimal, the financial strain associated with divorce could leave you needing all the help you can get to keep a good score.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">How to protect your credit during a divorce<\/h2>\n\n\n\n<p>Everyone\u2019s financial situation will look different following a divorce, but ultimately, only you can take action in protecting your credit. There are steps you can take to safeguard your credit and minimize the damage to your score if you\u2019re dealing with the fallout of a divorce.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">1. Establish a civil relationship during divorce<\/h3>\n\n\n\n<p>While we understand this isn\u2019t always possible or within your realm of control, establishing a civil relationship with your ex-spouse throughout the divorce and beyond can remove much of the burden in dealing with your finances. Maintaining a strong financial standing moving forward will be far easier if you can find a way to work with your ex-spouse productively and amicably, and arrive at solutions that are in everyone\u2019s best interests.&nbsp;<\/p>\n\n\n\n<p>Unfortunately, this can\u2019t always be the case, and you may be dealing with a vindictive ex-spouse who has no interest in partnering with you and who may actually try to intentionally make the proceedings more difficult. If this is your situation, it\u2019s imperative that you take every measure you can to protect your credit from being burned.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">2. Close joint accounts<\/h3>\n\n\n\n<p>Ideally, you and your spouse will be on good enough terms to come to an agreement about how your joint accounts will be handled. That means you could close all joint accounts together, split the funds and open new accounts in your own names.&nbsp;<\/p>\n\n\n\n<p>If that\u2019s not possible, you may want to consider contacting a divorce attorney to see what legal actions can be taken to protect your credit from harm. You can still get the ball rolling by making a request to\u00a0close the account\u00a0on your end and completing the associated paperwork, but a joint account can\u2019t be fully closed without both parties\u2019 consent.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">3. Contact your creditor<\/h3>\n\n\n\n<p>If you\u2019re unable to coordinate with your ex-spouse to close any joint accounts you both hold, contact your creditor and inform them of your divorce. You can ask to have your name removed from the account and inform them that you don\u2019t want to be held responsible for any future charges. Keep in mind that you\u2019ll still be liable for any charges up until that point, at least when it comes to what\u2019s documented on your credit report.&nbsp;<\/p>\n\n\n\n<p>It\u2019s a good idea to document all communications and exchanges you make with your creditors. If you spoke with your creditor over the phone, go a step further and also send your notice in writing for further protection. Take care in keeping all documents, dates and proof of communication organized so you can refer to them in the future if needed.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">4. Freeze your accounts<\/h3>\n\n\n\n<p>If you\u2019re worried your ex-spouse may withdraw all the funds from any joint accounts you share, you can contact your bank to inform them of your divorce and request a freeze on the account. This will prohibit both of you from making any withdrawals or initiating any other activity on the account, and it can remain frozen until a resolution is reached.&nbsp;<\/p>\n\n\n\n<p>If you do find that your ex-spouse has drained an account before you could take action, it\u2019s likely that the court will require you to be reimbursed. However, it could take a long time for that money to come in, so it\u2019s best to avoid the risk and take protective measures as soon as you can.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">5. Remove authorized user statuses from credit cards<\/h3>\n\n\n\n<p>If your ex-spouse is listed as an authorized user on any of your personal credit accounts, contact the bank to have their authorized user status removed. This is critical for your protection, since an authorized user can spend the funds of that account without being held responsible for them. You want to avoid debt being racked up in your name that you\u2019ll ultimately have to answer to.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">6. Review your credit report<\/h3>\n\n\n\n<p>If you\u2019ve been married for many years, there may be accounts listed on your credit report you\u2019ve forgotten about that you should address. Even if your divorce isn\u2019t final yet, it\u2019s wise to contact any of the\u00a0three major credit bureaus\u00a0to get a copy of your report. Reviewing your credit report can give you a detailed look at your full credit history and help you identify any individual and joint accounts.\u00a0<\/p>\n\n\n\n<p>Joint accounts and debts could include any loans or credit cards that you and your spouse acquired together during your marriage, while individual loans or accounts could be those that you opened up before you were married. You\u2019ll also be able to view which accounts have you listed as an authorized user, enabling you to remove your authorized user status from those accounts as soon as possible.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Moving forward: rebuilding your credit after divorce<\/h2>\n\n\n\n<p>If your credit has taken a hit following a divorce, it\u2019s crucial that you understand what you can do to proactively rebuild your credit going forward. There are plenty of ways you can make that happen\u2014the key is to not let your financial situation sit on the back burner while your credit score is hurting.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">1. Create a post-divorce budget<\/h3>\n\n\n\n<p>Adjusting to life as a newly single person can be overwhelming, especially when it comes to your finances. You can mitigate the overwhelming feelings and save yourself trouble by taking the time to create a post-divorce budget that reflects your new lifestyle. You might now be living on less income than you were when you were married, so it\u2019s important to adjust your budget to reflect such changes to avoid taking on more debt or causing damage to your credit score.&nbsp;<\/p>\n\n\n\n<p>Review your current financial situation and make any necessary changes to your budget. It\u2019s likely that you\u2019ll need to downgrade some of your prior expenses and cut out unnecessary spending if it means not having to take on more debt. You may want to consider increasing your income by looking for side jobs or other means of work to fund yourself going forward.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">2. Stay on top of payments<\/h3>\n\n\n\n<p>It\u2019s easy to let bill payments fall to the wayside when dealing with the aftermath of a divorce, but staying on top of those payments is critical for building your credit score. If you haven\u2019t already, set up payment reminders or automatic payments to ensure you don\u2019t rack up interest fees from late payments and cause a drop in your credit score.<\/p>\n\n\n\n<p>You might find it beneficial to seek help from a financial advisor if you\u2019re overwhelmed with managing your bills, debts and credit accounts during this time. They can walk you through different options that may ease some of the stress you\u2019re facing in managing your finances and maintaining a solid credit standing.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">3. Review your credit report often&nbsp;<\/h3>\n\n\n\n<p>Just because your divorce is finalized doesn\u2019t mean you shouldn\u2019t continue to carefully\u00a0monitor your credit report. It\u2019s important to review it regularly to ensure you catch any errors or problems that arise down the line that could be doing damage to your credit score.\u00a0<\/p>\n\n\n\n<p>You\u2019re entitled to one free copy of your credit report per year from each of the three credit bureaus (Experian<sup>\u00ae<\/sup>, TransUnion<sup>\u00ae<\/sup>\u00a0and Equifax<sup>\u00ae<\/sup>) which can be obtained on AnnualCreditReport.com. If you feel like you don\u2019t have the bandwidth to carefully review your credit report regularly, you can\u00a0hire credit advisors\u00a0who have experience finding and removing inaccurate information on credit reports.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">4. Use credit cards wisely<\/h3>\n\n\n\n<p>It can be tempting to lean more heavily on credit cards to fund your lifestyle after you\u2019ve gone through a divorce. Whether it\u2019s because you can\u2019t fully cover your usual expenses as a single earner or you fall into emotional spending habits as you cope with the divorce, failing to regulate your credit card usage can seriously damage your credit score.&nbsp;<\/p>\n\n\n\n<p>In order to protect your\u00a0credit score from dropping, it\u2019s important to stay on top of how much you\u2019re borrowing and keep up with all your payments. Avoid borrowing more than you need to so you don\u2019t increase your credit utilization ratio, and do your best to stick to your budget and gradually improve your credit over time.\u00a0<\/p>\n\n\n\n<p>Going through a divorce is difficult for a number of reasons, and it\u2019s easy to see your credit score take a hit as the process unfolds. If you\u2019re experiencing credit damage as a result of a divorce, the good news is that it can be rebuilt with time and effort.&nbsp;<\/p>\n\n\n\n<p>Take care to protect your credit during a divorce to the best of your ability, and remember that you don\u2019t have to deal with a damaged credit score forever if you take the proper steps in\u00a0rebuilding your score. You also don\u2019t have to go through the process alone\u2014enlisting the help of a professional\u00a0credit advisor\u00a0can remove some stress from the process and help you get back on your feet sooner.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Does Divorce Hurt Your Credit does divorce hurt your credit? The process of divorce is never an easy one\u2014the emotional toll that comes with ending a marriage can significantly impact many areas of your life, whether that\u2019s your living arrangements, your finances or\u2014if you\u2019re a parent\u2014your children.\u00a0 In the midst of all this, you might &#8230; <a title=\"Does Divorce Hurt Your Credit\" class=\"read-more\" href=\"https:\/\/businessfinancenews.com\/credit\/does-divorce-hurt-your-credit\/\" aria-label=\"More on Does Divorce Hurt Your Credit\">Read more<\/a><\/p>\n","protected":false},"author":10,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_kad_blocks_custom_css":"","_kad_blocks_head_custom_js":"","_kad_blocks_body_custom_js":"","_kad_blocks_footer_custom_js":"","_kad_post_transparent":"","_kad_post_title":"","_kad_post_layout":"","_kad_post_sidebar_id":"","_kad_post_content_style":"","_kad_post_vertical_padding":"","_kad_post_feature":"","_kad_post_feature_position":"","_kad_post_header":false,"_kad_post_footer":false,"footnotes":""},"categories":[44],"tags":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v22.0 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Does Divorce Hurt Your Credit - Business Finance<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/businessfinancenews.com\/credit\/does-divorce-hurt-your-credit\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Does Divorce Hurt Your Credit - Business Finance\" \/>\n<meta property=\"og:description\" content=\"Does Divorce Hurt Your Credit does divorce hurt your credit? The process of divorce is never an easy one\u2014the emotional toll that comes with ending a marriage can significantly impact many areas of your life, whether that\u2019s your living arrangements, your finances or\u2014if you\u2019re a parent\u2014your children.\u00a0 In the midst of all this, you might ... 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Business Finance","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/businessfinancenews.com\/credit\/does-divorce-hurt-your-credit\/","og_locale":"en_US","og_type":"article","og_title":"Does Divorce Hurt Your Credit - Business Finance","og_description":"Does Divorce Hurt Your Credit does divorce hurt your credit? The process of divorce is never an easy one\u2014the emotional toll that comes with ending a marriage can significantly impact many areas of your life, whether that\u2019s your living arrangements, your finances or\u2014if you\u2019re a parent\u2014your children.\u00a0 In the midst of all this, you might ... Read more","og_url":"https:\/\/businessfinancenews.com\/credit\/does-divorce-hurt-your-credit\/","og_site_name":"Business Finance","article_published_time":"2022-09-18T12:18:47+00:00","article_modified_time":"2023-08-24T15:19:08+00:00","author":"J Lipsky","twitter_card":"summary_large_image","twitter_misc":{"Written by":"J Lipsky","Est. reading time":"13 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/businessfinancenews.com\/credit\/does-divorce-hurt-your-credit\/#article","isPartOf":{"@id":"https:\/\/businessfinancenews.com\/credit\/does-divorce-hurt-your-credit\/"},"author":{"name":"J Lipsky","@id":"https:\/\/businessfinancenews.com\/#\/schema\/person\/21ba6b6b8408bf78c37aea43c61d3d61"},"headline":"Does Divorce Hurt Your Credit","datePublished":"2022-09-18T12:18:47+00:00","dateModified":"2023-08-24T15:19:08+00:00","mainEntityOfPage":{"@id":"https:\/\/businessfinancenews.com\/credit\/does-divorce-hurt-your-credit\/"},"wordCount":2848,"commentCount":0,"publisher":{"@id":"https:\/\/businessfinancenews.com\/#organization"},"articleSection":["Credit"],"inLanguage":"en-US","potentialAction":[{"@type":"CommentAction","name":"Comment","target":["https:\/\/businessfinancenews.com\/credit\/does-divorce-hurt-your-credit\/#respond"]}]},{"@type":"WebPage","@id":"https:\/\/businessfinancenews.com\/credit\/does-divorce-hurt-your-credit\/","url":"https:\/\/businessfinancenews.com\/credit\/does-divorce-hurt-your-credit\/","name":"Does Divorce Hurt Your Credit - Business Finance","isPartOf":{"@id":"https:\/\/businessfinancenews.com\/#website"},"datePublished":"2022-09-18T12:18:47+00:00","dateModified":"2023-08-24T15:19:08+00:00","breadcrumb":{"@id":"https:\/\/businessfinancenews.com\/credit\/does-divorce-hurt-your-credit\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/businessfinancenews.com\/credit\/does-divorce-hurt-your-credit\/"]}]},{"@type":"BreadcrumbList","@id":"https:\/\/businessfinancenews.com\/credit\/does-divorce-hurt-your-credit\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/businessfinancenews.com\/"},{"@type":"ListItem","position":2,"name":"Credit","item":"https:\/\/businessfinancenews.com\/category\/credit\/"},{"@type":"ListItem","position":3,"name":"Does Divorce Hurt Your Credit"}]},{"@type":"WebSite","@id":"https:\/\/businessfinancenews.com\/#website","url":"https:\/\/businessfinancenews.com\/","name":"Business Finance","description":"","publisher":{"@id":"https:\/\/businessfinancenews.com\/#organization"},"potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/businessfinancenews.com\/?s={search_term_string}"},"query-input":"required name=search_term_string"}],"inLanguage":"en-US"},{"@type":"Organization","@id":"https:\/\/businessfinancenews.com\/#organization","name":"Business Finance","url":"https:\/\/businessfinancenews.com\/","logo":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/businessfinancenews.com\/#\/schema\/logo\/image\/","url":"https:\/\/businessfinancenews.com\/wp-content\/uploads\/2022\/09\/2022-09-22_03-50-50.webp","contentUrl":"https:\/\/businessfinancenews.com\/wp-content\/uploads\/2022\/09\/2022-09-22_03-50-50.webp","width":451,"height":59,"caption":"Business Finance"},"image":{"@id":"https:\/\/businessfinancenews.com\/#\/schema\/logo\/image\/"}},{"@type":"Person","@id":"https:\/\/businessfinancenews.com\/#\/schema\/person\/21ba6b6b8408bf78c37aea43c61d3d61","name":"J Lipsky","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/businessfinancenews.com\/#\/schema\/person\/image\/","url":"https:\/\/secure.gravatar.com\/avatar\/338dd21f6226446418ff37e1d0426ee2?s=96&d=mm&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/338dd21f6226446418ff37e1d0426ee2?s=96&d=mm&r=g","caption":"J Lipsky"},"url":"https:\/\/businessfinancenews.com\/author\/lipsky\/"}]}},"taxonomy_info":{"category":[{"value":44,"label":"Credit"}]},"featured_image_src_large":false,"author_info":{"display_name":"J Lipsky","author_link":"https:\/\/businessfinancenews.com\/author\/lipsky\/"},"comment_info":0,"category_info":[{"term_id":44,"name":"Credit","slug":"credit","term_group":0,"term_taxonomy_id":44,"taxonomy":"category","description":"<div>\r\n\r\nCredit repair companies help you dispute inaccuracies on your reports with credit bureaus and creditors to help improve your credit score, while also helping you understand your credit standing. Since some credit situations are more complex than others, credit repair companies can help you resolve credit issues that would otherwise be hard to do on your own.\r\n\r\nCredit repair companies will start by pulling your credit reports from the three major credit bureaus\u2014TransUnion\u00ae, Experian\u00ae and Equifax\u00ae. Since some credit agencies only report to one credit bureau, there may be errors on one report that won\u2019t appear on another, which is why it\u2019s important for credit repair companies to pull all three.\r\n\r\nWhen reviewing your credit reports, credit repair companies will look for the following errors:\r\n<ul>\r\n \t<li>Incorrect inquiries<\/li>\r\n \t<li>Inaccurate accounts<\/li>\r\n \t<li>Accounts that don\u2019t belong to you<\/li>\r\n \t<li>Duplicate accounts<\/li>\r\n \t<li>Delinquencies and derogatory marks<\/li>\r\n \t<li>Fraudulent activity<\/li>\r\n \t<li>Missing accounts that should be listed on your reports<\/li>\r\n<\/ul>\r\nOnce they\u2019ve identified these errors, they may ask for extra documentation to help prove the inaccuracies. With all the necessary information, they\u2019ll file the disputes and work with the credit bureaus to resolve the issues.\r\n\r\nThese companies will also help answer any questions you may have about your credit and once the errors have been disputed, they\u2019ll provide you with information on strategies you can use to help keep a healthy credit profile.\r\n<h3><span id=\"How_to_know_if_a_credit_repair_company_is_legitimate\">How to know if a credit repair company is legitimate<\/span><\/h3>\r\nWhile there are many legitimate credit repair companies the industry is also filled with its fair share of scammers. Doing thorough research on the companies you\u2019re looking to work with can save you time and money. To verify a credit repair company\u2019s legitimacy, you\u2019ll need to know what they\u2019re legally allowed to do and not do.\r\n\r\nThe Credit Repair Organizations Act (CROA) was put into place to help regulate the industry and protect consumers from illegal credit repair scams. Under CROA, credit repair companies are not allowed to guarantee the removal of negative items, cannot offer to create a new credit profile for you and cannot accept payment until after the services have been completed.\r\n\r\nWhen determining good credit repair companies from bad ones, look out for the following red flags:\r\n<ul>\r\n \t<li><strong>They request payment up front.<\/strong>\u00a0All payments must be made after the services have been completed.<\/li>\r\n \t<li><strong>They\u2019re unable to answer your questions.<\/strong>\u00a0Legitimate companies will provide answers to any and all questions that may arise.<\/li>\r\n \t<li><strong>They ask you to lie about your credit history.<\/strong>\u00a0Under CROA, companies are prohibited from asking you to lie or misrepresent your information.<\/li>\r\n \t<li><strong>They fail to provide information.<\/strong>\u00a0Reputable companies will always inform you of your rights as a consumer.<\/li>\r\n<\/ul>\r\n<\/div>\r\n<div>\r\n<p class=\"after-tip\">Legitimate credit repair companies will be up front about how they can assist you and what services they think will work in your favor. They\u2019re here to help you understand your credit standing and want to work with you to improve your credit score.<\/p>\r\n\r\n<h3><span id=\"How_much_does_it_cost_to_repair_my_credit\">How much does it cost to repair my credit?<\/span><\/h3>\r\nHow much you pay for credit repair will depend on the company and your credit situation. Some consumers may only need a few errors disputed, while some may require more in-depth credit repair services. How you pay for these services vary from company to company, as each has its own payment structure. Some companies may require you to pay a one-time flat fee, pay per derogatory mark or charge a monthly payment.\r\n\r\nCredit repair companies cannot charge you until the work outlined in your contract is complete. The contract should also outline your right to cancel without penalty should you wish to do so.\r\n\r\n<\/div>\r\n<div>\r\n<p class=\"after-tip\">We offer a variety of service levels to support every budget and need. Our credit repair service levels range from $95.95 to $139.95 and each option offers unique coverage to fix errors on your credit report.<\/p>\r\n\r\n<\/div>","parent":0,"count":18,"filter":"raw","cat_ID":44,"category_count":18,"category_description":"<div>\r\n\r\nCredit repair companies help you dispute inaccuracies on your reports with credit bureaus and creditors to help improve your credit score, while also helping you understand your credit standing. Since some credit situations are more complex than others, credit repair companies can help you resolve credit issues that would otherwise be hard to do on your own.\r\n\r\nCredit repair companies will start by pulling your credit reports from the three major credit bureaus\u2014TransUnion\u00ae, Experian\u00ae and Equifax\u00ae. Since some credit agencies only report to one credit bureau, there may be errors on one report that won\u2019t appear on another, which is why it\u2019s important for credit repair companies to pull all three.\r\n\r\nWhen reviewing your credit reports, credit repair companies will look for the following errors:\r\n<ul>\r\n \t<li>Incorrect inquiries<\/li>\r\n \t<li>Inaccurate accounts<\/li>\r\n \t<li>Accounts that don\u2019t belong to you<\/li>\r\n \t<li>Duplicate accounts<\/li>\r\n \t<li>Delinquencies and derogatory marks<\/li>\r\n \t<li>Fraudulent activity<\/li>\r\n \t<li>Missing accounts that should be listed on your reports<\/li>\r\n<\/ul>\r\nOnce they\u2019ve identified these errors, they may ask for extra documentation to help prove the inaccuracies. With all the necessary information, they\u2019ll file the disputes and work with the credit bureaus to resolve the issues.\r\n\r\nThese companies will also help answer any questions you may have about your credit and once the errors have been disputed, they\u2019ll provide you with information on strategies you can use to help keep a healthy credit profile.\r\n<h3><span id=\"How_to_know_if_a_credit_repair_company_is_legitimate\">How to know if a credit repair company is legitimate<\/span><\/h3>\r\nWhile there are many legitimate credit repair companies the industry is also filled with its fair share of scammers. Doing thorough research on the companies you\u2019re looking to work with can save you time and money. To verify a credit repair company\u2019s legitimacy, you\u2019ll need to know what they\u2019re legally allowed to do and not do.\r\n\r\nThe Credit Repair Organizations Act (CROA) was put into place to help regulate the industry and protect consumers from illegal credit repair scams. Under CROA, credit repair companies are not allowed to guarantee the removal of negative items, cannot offer to create a new credit profile for you and cannot accept payment until after the services have been completed.\r\n\r\nWhen determining good credit repair companies from bad ones, look out for the following red flags:\r\n<ul>\r\n \t<li><strong>They request payment up front.<\/strong>\u00a0All payments must be made after the services have been completed.<\/li>\r\n \t<li><strong>They\u2019re unable to answer your questions.<\/strong>\u00a0Legitimate companies will provide answers to any and all questions that may arise.<\/li>\r\n \t<li><strong>They ask you to lie about your credit history.<\/strong>\u00a0Under CROA, companies are prohibited from asking you to lie or misrepresent your information.<\/li>\r\n \t<li><strong>They fail to provide information.<\/strong>\u00a0Reputable companies will always inform you of your rights as a consumer.<\/li>\r\n<\/ul>\r\n<\/div>\r\n<div>\r\n<p class=\"after-tip\">Legitimate credit repair companies will be up front about how they can assist you and what services they think will work in your favor. They\u2019re here to help you understand your credit standing and want to work with you to improve your credit score.<\/p>\r\n\r\n<h3><span id=\"How_much_does_it_cost_to_repair_my_credit\">How much does it cost to repair my credit?<\/span><\/h3>\r\nHow much you pay for credit repair will depend on the company and your credit situation. Some consumers may only need a few errors disputed, while some may require more in-depth credit repair services. How you pay for these services vary from company to company, as each has its own payment structure. Some companies may require you to pay a one-time flat fee, pay per derogatory mark or charge a monthly payment.\r\n\r\nCredit repair companies cannot charge you until the work outlined in your contract is complete. The contract should also outline your right to cancel without penalty should you wish to do so.\r\n\r\n<\/div>\r\n<div>\r\n<p class=\"after-tip\">We offer a variety of service levels to support every budget and need. Our credit repair service levels range from $95.95 to $139.95 and each option offers unique coverage to fix errors on your credit report.<\/p>\r\n\r\n<\/div>","cat_name":"Credit","category_nicename":"credit","category_parent":0}],"tag_info":false,"_links":{"self":[{"href":"https:\/\/businessfinancenews.com\/wp-json\/wp\/v2\/posts\/8580"}],"collection":[{"href":"https:\/\/businessfinancenews.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/businessfinancenews.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/businessfinancenews.com\/wp-json\/wp\/v2\/users\/10"}],"replies":[{"embeddable":true,"href":"https:\/\/businessfinancenews.com\/wp-json\/wp\/v2\/comments?post=8580"}],"version-history":[{"count":1,"href":"https:\/\/businessfinancenews.com\/wp-json\/wp\/v2\/posts\/8580\/revisions"}],"predecessor-version":[{"id":17984,"href":"https:\/\/businessfinancenews.com\/wp-json\/wp\/v2\/posts\/8580\/revisions\/17984"}],"wp:attachment":[{"href":"https:\/\/businessfinancenews.com\/wp-json\/wp\/v2\/media?parent=8580"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/businessfinancenews.com\/wp-json\/wp\/v2\/categories?post=8580"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/businessfinancenews.com\/wp-json\/wp\/v2\/tags?post=8580"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}