If you were a stay-at-home mom while married, it can be daunting to rebuild your finances after divorce. Figuring out how to do it all on your own can seem impossible at times, but do not lose hope. While divorce can be hard on your finances, it is possible to build yourself back up. One of the best ways to bounce back is by rebuilding your credit.
Having an impressive credit score can help you buy a house, finance a new car, get insurance coverage and process rental applications. Keep reading for some tips from Bankrate about rebuilding your credit after divorce.
1. Develop your own credit history
If your ex-husband had everything in his name, it is time to establish a credit history on your own. The simplest way to start this is by applying for a credit card at your local bank or department store. You might also want to get a small loan from your bank. If you do not qualify for a credit card or loan that is unsecured, you may be able to get a secured card or loan with your own money as collateral.
2. Make payments on time
One of the most helpful ways to rebuild your credit is to pay your bills on time. Whenever you can manage to pay bills early, do it. Pay more than the minimum payments on your credit cards when possible. Money might be tight after divorce, but accomplish these things whenever you can.
3. Pay off your debts
While you are rebuilding your finances, you must resist the temptation to build new debt. Instead, pay off existing debts. The debt you owe significantly impacts your credit score. Avoid investing in new outfits or financing a new car. You should focus on cutting corners and paying off your debts.
It might take time and hard work, but you will be more financially stable once you have a strong credit score.
