About Personal Credit Scores & Reports

Dear Audrey,

I recently received my credit report from TrueCredit. I would like to start repairing my credit and improving my credit scores after a divorce so that I can buy a house. I am in a position to start this process, but I am not sure how to go about it. Can you help me in this area?

Mike W.

Dear Mike,

Divorce is a very common cause of financial distress. It's hard to split up your accounts while trying to keep yourself together.

Your first step should be to stop any new damages to your credit reports from TransUnion, Equifax and Experian. Make sure that all joint and co-signed accounts from your marriage have been closed or refinanced. You don't need your former spouse's late payments causing any new harm to your credit. A court decree alone will not stop a joint account from being recorded on each party's credit report. Order your credit reports and look at your financial status carefully. Are there late payments, high balance debts or inaccuracies on your credit report?

Highlight each problem area and make a detailed plan for improvement. Dispute the inaccuracies you find with the creditors or credit reporting agencies. Sign up for automatic bill payment through your bank. Make a plan for reducing your debts to below 35% of their limits. If you have a negative record on your credit report such as a bankruptcy, make sure it is being accurately recorded and know the expiration date.

Aim to increase your score above 650 in order to help qualify for most standard loan offers. If you start working on your credit now, you should be back on track and ready to buy a home soon.

Best wishes,

Audrey O'Dell