It is not uncommon for Florida residents to experience a dip in their credit scores immediately after a divorce. The end of a marriage will bring about a number of changes to the financial standing of both spouses, and the property division process may require certain accounts to be closed or divided. Having solid credit scores is important, but the good news is that it is relatively easy to boost one's score.
The best place to begin is by checking a current credit report from all three bureaus. Take care to follow up to ensure that the other party's name has been removed from the proper accounts, or that one's own name has been removed, as agreed upon in the property division settlement. Next, determine how many open credit card accounts exist. Financial experts claim that consumers should have between three and five open accounts in order to maximize credit scoring.
If needed, consider opening new accounts as needed. Be sure to review the terms of existing accounts to make sure that the terms are in line with or better than current credit offers. While it is true that accounts that have been open for a long time will have a positive impact on credit scoring, that benefit is overshadowed if the card also has high fees. Fortunately, there are numerous credit card offers that feature low fees, fair interest rates and a wide range of perks and reward benefits.
Creating a new financial landscape is an exciting prospect for many Florida residents. That is especially true in cases where the property division process has left a spouse with a solid financial base to build upon. Working to improve one's credit can have a lasting positive impact, which can help make the years to come far less stressful.
Source: nerdwallet.com, "How To Assess Your Credit Card Needs After Divorce", Virginia C. McGuire, April 13, 2017