Credit Problems and Divorce

Many people who recently divorce find 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:

Since you have been unable to obtain credit though conventional channels, a possible alternative loan resource you may want to explore is a peer-to-peer loan from Prosper or Lending Club. Both put 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 the Bills.com debt help page for more information. I hope this information helps you Find. Learn & Save.

Best,

Bill

Bills.com