Three Tips for Re-establishing Credit After A Divorce!

Click on our Advertisement

Apply for a gas card. Gas cards are often the easiest credit cards to obtain. They can be used to buy fuel and services. You will have a low credit limit and will have to pay the balance every month. Some gas cards allow you to carry a balance, but it will have a high interest rate. It's a great way to establish credit.

Ask for credit terms for a large purchase. Many retailers offer credit terms for high-ticket purchases like furniture, appliances or televisions. You can even find zero-interest for a year or two when shopping in competitive markets for high-ticket merchandise, like computers. If you find an interest-free deal, be sure to pay off the balance before the end of the zero-interest period. If you don't, you'll incur interest for the entire period since the purchase on the original price – not on the balance!

Choose a credit card with a low credit limit. Ask your bank or your credit union to issue you a major credit card, like MasterCard or Visa, with a low limit. Make some small purchases and pay them off at the end of the month. You can also find low-limit credit cards through colleges and universities, if you are a student or on the Internet.

The most important thing to remember when establishing credit on your own is to pay your bills or time, every time. If you re-marry, be sure to keep some credit in your name.

A divorce is, above all, a stressful process. But often, it is a lot more than that; those who go through a divorce process can find themselves in a terrible credit situation after the process has finished due to the couple’s credit behavior. Nevertheless, there are things you can do to rebuild your credit and recover your ability to get finance.

The marriage is over, and now you need to establish credit on your own. Ensure to get a copy of your credit report to make sure there are no inconsistencies that need to be corrected. It is often common that creditors report incorrectly or that the information is altered during the reporting process. After taking care of those issues, start slowly to build your credit history.

Building Credit With a Gas Store Card

Apply for a gas card. Gas cards are often the easiest credit cards to obtain. They can be used to buy fuel and services. You will have a low credit limit and will have to pay the balance every month. Some gas cards allow you to carry a balance, but it will have a high interest rate. It's a great way to establish credit.

Request Credit on Stores for Significant Purchases

Ask for credit terms for a large purchase. Many retailers offer credit terms for high-ticket purchases like furniture, appliances or televisions. You can even find zero-interest for a year or two when shopping in competitive markets for high-ticket merchandise, like computers.

But you need to be extremely careful on these credit operations, because as the old saying states, there is always a catch. If you find an interest-free deal, be sure to pay off the balance before the end of the zero-interest period. If you don't, you'll incur interest for the entire period since they are calculated on the original price and not on the balance!

Requesting a Traditional Credit Card

Choose a credit card with a low credit limit. Ask your bank or your credit union to issue you a major credit card, like MasterCard or Visa, with a low limit. Make some small purchases and pay them off at the end of the month. You can also find low-limit credit cards through colleges and universities (if you are a student) or on the Internet.

Summing Up

There are alternative ways to re-establish your credit other than the traditional path. However, these methods should be only used in combination with a healthy credit behavior that is ultimately the only way of truly raising your credit score and improving your credit history.

The most important thing to remember when establishing credit on your own is to pay your bills on time, every time. Always check your credit report to see if your timely payments are being reported and if there are no mistakes that need to be fixed. If you ever re-marry, be sure to keep some credit in your name. Thinking ahead is always the best solution to credit problems.