Keeping on top of your credit score during divorce

Keeping on top of your credit score during divorce

As someone who has gone through a divorce I know how difficult it can be. At times even making toast is hard and keeping on top of bills and other financial commitments may seem impossible. Here are a few tips to make sure your credit score isn’t affected while you are going through this difficult time.

Pay your bills

As hard as it may be it is essential that you keep on top of your finances during divorce. As an accountant I have met too many people who have become buried in a mountain of bills and debt, ruining their credit score. Even one missed cell phone bill payment is enough to toss your credit score in the trash.

Set up minimum payments

One thing that can help with this is setting up minimum automatic payments to come out of your bank account once a month. That way all your bills are taken care of without you having to lift a finger. Set it and forget it. This can go a long way in protecting your credit score while you are preoccupied in the very emotional divorce process.

Keep on top of your credit

Another way that you can protect your credit is signing up for a credit monitor like Transunion. They will send you a monthly update on what is going on with your credit so you can rectify any issues that pop up immediately and ensure your credit stays as pristine as possible during this period.

Keep up with car payments

Another thing you must watch out for is car payments. If there is a vehicle loan in your name but your ex-spouse has the vehicle make sure you don’t stop making the payments. If you do it is your credit score that will suffer. Resist the urge to get back at your ex and make sure those payments continue to be paid in full. In the end the only person you would be hurting by not making the payments is yourself.

Your credit is important if you want to be able to secure loans and credit cards in the future. Don’t let the stress of your divorce contribute to creating more stress by ruining your credit. Make everything as simple as possible by setting up automatic withdrawals and talk to an accountant if you think you might be getting in to hot water. Your future self will thank you when you emerge from your divorce with a healthy credit score.

About Cathy Sheppard

Cathy is the President and CEO of Sheppard & Associates Ltd. in Kemptville, Ontario. With a business administration diploma in finance Cathy started Sheppard & Associates over 30 years ago and has grown the business from a home office to a staff of 13 employees. Cathy enjoys every day at work and focuses on solving her client's financial problems so they can focus on what really matters to them.