Credit Problems and Divorce - The Bills.com Blog

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Credit Problems and Divorce

Wednesday, Aug 15, 2007

Question: I have gone through a divorce that has left my credit in very bad shape. Most is because mt ex was court ordered to pay and has not paid their bills, and uses my info to make it worse. I have contacted attorney to get that fixed but I do need a loan to pay off some bills and get my car fixed. Local lenders look at only credit scores not the person or reason for the problem. Does a company really give a good person in a bad position a break and show them they can and will make payments. I am looking for about a $5,000 dollar loan. Thank you. Becky.

Answer: Thanks for your question, Becky. Many people who have recently been through a divorce find that their credit rating suffers significantly because of the financial turmoil the frequently accompanies divorce.

The situation that you describe in your question, in which your former spouse has failed to make payments on debts after being ordered to do so by the court, is one of the most common reasons for lingering credit problems after a divorce. You mention in your question that you have spoken with your attorney about your ex-husband’s failure to make his required payments and his continued use of your personal information to incur additional debts; if the court finds that your ex-husband is in violation of the original divorce decree, the court may hold him in contempt until
he repays the debts as required by the court order. Once your ex-husband has started making payments on the accounts in your name, your credit score should begin to improve as the accounts start reporting positive payment histories. BUT - even a court order will not necessarily improve your credit rating.

You may also wish to place a consumer statement on your credit report so that potential lenders who pull your credit report are aware of the fact that your ex-husband is supposed to be repaying these debts, but that he has failed to do so. If you would like to include a statement on your credit reports, you should contact each of the three major credit bureaus (Equifax, Experian, and TransUnion) to find out the procedure for including a statement on each of your credit reports. While a personal statement will not change your credit score and will not necessarily cause creditors to be more willing to lend you money, it should at least explain to situation to potential lenders and may improve your chances of qualifying
for new credit.

There are three major credit bureaus that offer credit reports, if there is something that you want added or removed, you should contact them directly:

Equifax
1-800-685-1111
www.equifax.com

Experian
1-888-397-3742
www.experian.com

Trans Union
1-800-916-8800
www.transunion.com

Since you have been unable to obtain credit though conventional channels, a possible alternative loan resource you may want to explore is www.Prosper.com a site which puts private lenders in contact with private borrowers. A private lender may be more willing extend you a loan than a traditional bank. If you are unable to find a consolidation loan that fits your needs, you may want to look into alternatives such as debt settlement or credit counseling to assist you in repaying your debts. Bills.com offers a wealth of information regarding the various debt help options available to consumers–visit http://www.bills.com/debthelp/ for more information. I hope we can help you find a solution to your debt troubles, and help you Find. Learn. Save.

Best,
Bill
www.bills.com

Also, make sure to get a free financial health check-up with Bills IQ!

User Comments

1. Posted by arens on Friday 5th June 2009 16:42

Over 10 years ago I filed for bankruptcy and under personal statement I stated that it was due to medical bills. Now I have a credit score of 792 and the only mention of bankruptcy is the personal statement that I put in. How can I have this removed?

2. Posted by Bill on Friday 5th June 2009 16:49

I don't think you can get a personal statement removed. You can try writing to the individual credit bureaus.

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