Part 3 of 4: Divorced? How do you build your credit?
Your credit score is based on several different factors and these things can impact your score:
- Late payments - late payments will negatively impact your score, typically the late payment needs to be 30 days or more late to impact your score, but why risk it;
- High balances - a high balance in your bank account is good, a high balance on your credit card? Not so good. Pay down your cards, starting with the card with the highest interest rate or the highest balance;
- Utilization of credit - maxed out cards will impact your score negatively;
- Opening new accounts all at once - What about that new cell phone account you have to open to separate your account from your Ex-spouse? The cell phone company will run your score before they open the account and that will impact your score too;
- Debt to income ratio, how much debt you carry verses how much income you earn will impact your score;
- Length of credit history - old credit cards are good credit cards (years of consistent payments are a good thing). If you have a hard time controlling your spending don't call and cancel the account. Cut up the card or freeze it in a block of ice to prevent you from using it as closing an account that you've had forever will shorten your credit history.
All Four Parts of How Can Credit Scores Impact Your Dating Life, Marriage or Divorce?
Have questions call or email me:
732-545-4717 x 3859
jmazur@hoaglandlongo.com
