Posted by Philip Tirone on August 25th, 2010
I want to share with you a question I recently received about how to repair credit after bankruptcy. Actually, Stephanie wanted to know a few of the bankruptcy facts because she wanted to repair her ex-husband’s credit after her own bankruptcy.
While married, Josh co-signed on a car loan for Stephanie. Stephanie also added Josh as an authorized user to two of her credit card accounts.
The couple then divorced. Six months later, Stephanie started experiencing financial problems. She was late on her car payments, as well as her credit cards. Then Stephanie declared bankruptcy. Though the vehicle was not included in the bankruptcy, the credit cards were.
Unfortunately, Josh was still a co-signer on the car. And he was still listed as an authorized user on the credit card accounts.
So now Josh had late payments from the car and credit cards on his credit report. He was suffering from Stephanie’s financial meltdown, and from her bankruptcy. Stephanie now wanted to correct the problem she caused by learning how to repair credit after bankruptcy.
Fixing the authorized users shouldn’t be a problem. All Stephanie had to do was call the creditors and explain that Josh was not to be listed as an authorized user on those accounts anymore. But the car was a bigger problem. I explained that by co-signing, Josh had made an agreement with the banks. He agreed to be responsible for paying the car in the event that Stephanie could not. Josh and Stephanie were learning an important fact about divorce and credit scores: Divorce does not nullify an agreement with a bank.
If Josh wanted to repair his credit after Stephanie’s bankruptcy, he was at the mercy of the bank. I explained that he could call the bank and explain the situation, but there were no guarantees that the bank would remove the late payment notices.
The moral of the story is this: If you are divorced, split your credit apart! Refinance all loans. Cancel joint credit cards, or have them transferred into one person’s name. Remove your name as an authorized user on your ex-spouse’s accounts, and remove your ex-spouse’s name from your accounts. Learning how to repair credit after bankruptcy is hard enough without adding an ex into the mix!
Posted by Philip Tirone on August 17th, 2010
In last week’s blog, I gave you three tips about renting and credit checks:
Highlight your strengths.
Explain what happened.
Be willing to compromise.
In this week, we will look at three more tips about renting and credit checks.
Renting and Credit Checks Tip #4: Add a 100-word consumer statement to your credit report.
A consumer statement, also known as a...
Posted by Philip Tirone on August 12th, 2010
If you have bad credit, here’s one of the bankruptcy facts about renting and credit checks: most landlords will consider your credit score a primary factor in deciding whether to rent a home or apartment to you.
But fear not! This week, we will look at three tips to overcome this obstacle. And be sure to...
Posted by Philip Tirone on August 4th, 2010
In my last post, I discussed when to apply for a mortgage jointly and when to apply individually. In this post, we talk about the final consideration of marriage and credit.
Marriage and Credit Consideration #4: Leverage Your Spouse’s Credit Score
Is your credit bad? Consider the bankruptcy facts. If you went through a bankruptcy prior to...
Posted by Philip Tirone on July 29th, 2010
In my last post, I talked about the second of four marriage and credit considerations. In summary, each spouse should build his or her own credit score.
In this post, we talk about the third consideration of marriage and credit.
Marriage and Credit Consideration #3: A Wise Approach to Mortgages
Though applying for joint credit cards...
Posted by Philip Tirone on July 26th, 2010
In my last post, I talked about the first of four marriage and credit considerations. In summary, a married couple should not open joint credit cards. Opening separate credit cards allows couples to leverage each other’s credit during financial crises by protecting one person’s credit score.
In this post, we talk about the second consideration of...
Posted by Philip Tirone on July 23rd, 2010
When it comes to marriage and credit, you have two choices: open joint accounts that appear on both spouses’ credit reports, or keep your credit separate. Many people erroneously believe that they should take the former approach, but keeping credit separate has its definite advantages. Following is the first of four considerations I will blog...
Posted by Philip Tirone on July 23rd, 2010
“Would you like to save 10 percent on your purchase today by applying for a retail store credit card?”
Does that sound familiar? Just about every major department, clothing and electronics store has a promotion aimed at getting people to sign up for a store-specific credit card. But what you don’t know about retail store credit...
Posted by PhilipT on July 15th, 2010
How to Remove a Bankruptcy from Credit Report, Credit After Bankruptcy, Bankruptcy Facts, After Bankruptcy – Question #4
Question submitted by: Kathy, Tampa Florida
How can I remove a bankruptcy from my credit report?
Answer:
Kathy – this blog post is going to be completely different than every other blog about how to remove a bankruptcy from your...
Posted by PhilipT on July 15th, 2010
Credit After Bankruptcy, Bankruptcy Facts, After Bankruptcy – Question #3
Question submitted by: Alfred, Parma, Ohio
My credit is ruined, and I mean ruined. How does one recover?
Answer:
Alfred – I want you to act as if you need to reestablish your credit after bankruptcy.
I assume you are getting our video credit lessons on reestablishing your credit...
