Bad Credit from a Relationship Breakup? It Happens

July 28th, 2017 by

A bad relationship comes to a boil, and suddenly it’s over. Whether it’s a marriage that ends in divorce or it’s something less defined, there’s a sad finality when it’s all said and done. But you’ve been tied together financially too, and that’s a factor that most people don’t consider. When a relationship breaks down, one or both people could unexpectedly find themselves with bad credit.

Financial Unknowns Can Lead to Bad Credit

If you have a mortgage or a credit card, rent payments or a car loan, it’s usually not at the front of your mind when you’re dissolving a relationship. It’s a messy time where neither party is paying close attention to who is paying the bills. And you know what that means: no one is paying them.

It takes a very short few months before your credit rating has taken a serious hit. You have late and missed payments, your credit card might be cancelled, and notices show up in the mail daily. It can take years to dig out from the financial mess, and bad credit can follow you even longer.

It’s Not Too Late

If you find yourself in the midst of a relationship breakdown, don’t forget about the numbers. Credit bureaus won’t ask if you need to talk or how you’re doing without your ex – they just want their money.

Before you’re stuck with a bad credit rating that you can’t shake, stay on top of all your payments. Make the minimum payment if you must, or talk to the creditors to make arrangements if you can’t make the payment at all. You can save yourself years of trouble down the road.

…Or If You Need Help

If your ex has taken you to the cleaners or you’re already saddled with a bad credit rating, there’s help available. One of the best things you can do is get right back on the credit bandwagon.

  • Get a credit card. Even a prepaid credit card will help you rebuild your credit rating as you use it.
  • Take a small loan. Borrow a small amount of money, then repay it the following month. A loan repaid in full looks great on your credit score.
  • Buy a car. Even if you aren’t eligible for a subvented interest rate, buying a car can get your credit rating on the right track.

Make sure you make every one of your payments on time to keep your credit rating trending on the up.


Posted in Finance