Divorce Can Wreck Your Credit—But You Can Fix It
Divorce is already emotionally exhausting, and the last thing you need is financial stress on top of it. Yet, many people find themselves in credit trouble after separating, struggling to repair credit after divorce. Joint accounts, missed payments, and shared debts can quickly turn a once-healthy credit score into a nightmare.
If your credit took a hit after divorce, don’t panic. You can take steps to repair credit after divorce and regain financial stability. Whether you’re currently going through a divorce or still dealing with financial fallout from a past one, this guide will walk you through exactly what to do next.
How Divorce Can Damage Your Credit Score
Even though credit reports aren’t tied to marital status, divorce can seriously affect your credit. Here’s why:
1. Missed Payments on Joint Accounts
- If you and your ex shared credit cards, auto loans, or a mortgage, you’re both responsible for those debts—even after the divorce
- If one of you stops paying, the missed payments will hurt both credit scores.
2. Increased Debt and High Credit Utilization
- Many people rely on credit cards to cover legal fees, moving costs, or making ends meet during a divorce
- High balances and maxed-out cards negatively impact credit scores and make it difficult to repair credit after divorce
3. Accounts Still Linked to Your Ex
- Even if the divorce decree states that your ex is responsible for a debt, creditors don’t care
- As long as your name is on the account, you’re still legally responsible. If your ex fails to pay, your credit score suffers, delaying your efforts to repair credit.
Real-Life Example:
One of our clients thought she was in the clear after the divorce court ruled her ex-husband responsible for their shared credit card debt. A year later, she tried to finance a new car—only to find out that her credit score had tanked. Her ex had stopped making payments, and because her name was still on the account, her credit took the hit. This is why taking proactive steps to repair credit after divorce is crucial.
Step 1: Check Your Credit Report for Post-Divorce Errors
Before you can start repairing credit after divorce, you need to see where you stand. Get a copy of your credit report from all three major bureaus (Equifax, Experian, and TransUnion) at Creditheroscore.com
What to Look For:
- Joint accounts you thought were closed
- Late payments on accounts you’re still linked to
- Debt that should be in your ex’s name but is still reporting under yours
- Errors or fraudulent activity affecting your ability to repair credit after divorce
If you find mistakes, take action immediately.
Step 2: Remove Your Ex from Your Credit Accounts (or Vice Versa!)
One of the biggest mistakes people make after a divorce is leaving joint accounts open. Even if you trust your ex, you don’t want their financial decisions affecting your credit. Closing shared accounts is essential when working to repair credit after divorce.
How to Separate Accounts:
- Credit Cards: Call the issuer and ask if you can remove yourself (or your ex). If not, pay off and close the account
- Auto Loans & Mortgages: These typically require refinancing a loan after divorce to remove one person’s name. If that’s not an option, selling the asset may be the best move
- Authorized User Accounts: If your ex is still listed as an authorized user on your credit card, remove them ASAP
Tip: Keep a record of these changes! If a creditor refuses to remove you from a debt, having documentation can help in disputes.
Step 3: Dispute Inaccurate Information on Your Credit Report
If your credit report contains mistakes, you have the right to dispute and remove them.
How to Dispute Credit Report Errors:
- Contact the credit bureaus (Equifax, Experian, TransUnion)
- Provide proof (divorce decree, payment records, etc.)
- Follow up to ensure corrections are made
Disputing errors can quickly improve your credit score—especially if your ex’s missed payments are dragging you down.
Step 4: Pay Down Debt and Reduce Credit Utilization
One of the fastest ways to boost your credit score is to pay down credit card balances. Your credit utilization ratio (the percentage of your available credit that you’re using) plays a huge role in your ability to repair credit after divorce.
How to Pay Off Joint Debt After Divorce:
- Snowball Method: Pay off small balances first for quick wins
- Avalanche Method: Focus on high-interest debts to save money
- Negotiate with creditors: Some lenders will settle for less than you owe
Step 5: Rebuild Your Credit with New Accounts
If your credit was damaged by divorce, you may need to start fresh to repair credit after divorce. Opening new credit accounts can help—but choose wisely.
Best Credit-Building Options:
- Secured Credit Cards (require a deposit but help build credit)
- Credit Builder Loans (small loans that boost your score over time)
- Retail Store Cards (easier to qualify for, but use sparingly)
Warning: Avoid predatory lenders that promise “easy approval” but charge high fees and interest rates.
Step 6: Protect Your Credit Moving Forward
Now that you’ve cleaned up your credit, keep it that way!
Smart Credit Habits Post-Divorce:
- Set up automatic payments to avoid late fees
- Monitor your credit score monthly using free tools like CreditHero Score
- Use credit wisely—don’t max out cards or apply for too many at once
Divorce may have set you back, but sticking to good credit habits will get you back on track.
When to Get Professional Help to Repair Credit After Divorce
Sometimes, credit repair is too overwhelming to handle alone. If you’re dealing with stubborn errors, collections, or legal issues, it may be time to get expert help.
How a Credit Repair Company Can Help:
- Dispute negative marks & errors on your report
- Negotiate with creditors to reduce debt
- Create a customized credit recovery plan
At Credit Recovery Group, we specialize in helping people repair credit after divorce. We’ll review your situation, identify what’s hurting your score, and create a step-by-step plan to fix it.
Get a FREE credit evaluation today.
Final Thoughts: Take Back Control of Your Financial Future
Divorce is tough, but your credit doesn’t have to suffer forever. By following these steps, you can repair credit and move forward with confidence.
You deserve a fresh financial start. Take action today, and soon enough, your credit score will reflect the strong, independent future ahead of you.
Have questions? Call us, were happy to answer your questions quickly. Let’s rebuild your credit—together.