“Couples with the lowest initial average credit scores are two or three times more likely to end up divorcing with their partners than couples with high credit scores.” That’s according to a 2015 study on the link between bad credit and divorce by researchers at the Federal Reserve Board. Finances have always had an impact on marriages. And, are one of the factors that lead to couples divorcing. Divorces that involve a child are even more complex. If possible, you should handle the divorce amicably. Also, this post shares tips on how to raise your credit score after a divorce. Having good credit will empower you to move forward with your life and to purchase items you need in your life.
Repair your credit report
Major events such as weddings or divorces have a significant impact on your creditworthiness. As a matter of fact, divorces require that you close joint accounts. As a result, your spouse’s financial history is synced with yours. However, information may be misfiled during the process. This could affect your ability to provide for your family. So, a dispute with the credit bureau can be corrected by visiting a credit repair company. The company will follow up and ensure all your information is correct. So, if you want to know how to raise your credit score follow-up with this tip.
The importance of weekly and monthly budgets
The responsibilities of raising a family is diverse and cannot be accounted for all the time. Precautionary funds are hard to determine. Nevertheless, setting up a weekly and monthly budget helps you cut back on expenses. Especially, expenses that eat into your finances. For example, daily expenses such as lunches can be reduced with fresh foods from your backyard garden. Pay utility or credit card bills on time with your savings. This is a great tip on how to raise your credit score too.
Open a savings account
Once you ensure that your credit report is accurate, your next step would be to open a savings account. Saving in a kitty jar is helpful, but saving in a bank account is more ideal. Apart from making budgets and cutting back on spending, you can set up a saving account from your salary. A savings account is a venture you and your family can undertake together. Not only does it improve your credit score, it serves as an example for your children. Encouraging your children to save is a good step.
Raising kids, affording a family vacation or starting a family business are all financial responsibilities a family has to always consider regardless of divorces. If you decide to remarry, the burden can be shared between the spouses. But, you must ensure your credit reports are accurate single or married. So, when you think about how to raise your credit score, remember you must take the right steps. Doing so can improve your credit report.
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