Three Trips For Re-establishing Credit After Divorce

The marriage is over, and now you need to establish credit on your own. Be sure to get a copy of your credit report to make sure you and your ex have no errors or accounts that need to be caught up. After taking care of those issues, start slowly to build your credit history.

Apply for a gas card. Gas cards are often the easiest credit cards to obtain. They can be used to buy fuel and services. You will have a low credit limit and will have to pay the balance every month. Some gas cards allow you to carry a balance, but it will have a high interest rate. It’s a great way to establish credit.

Ask for credit terms for a large purchase. Many retailers offer credit terms for high-ticket purchases like furniture, appliances or televisions. You can even find zero-interest for a year or two when shopping in competitive markets for high-ticket merchandise, like computers. If you find an interest-free deal, be sure to pay off the balance before the end of the zero-interest period. If you don’t, you’ll incur interest for the entire period since the purchase on the original price – not on the balance!

Choose a credit card with a low credit limit. Ask your bank or your credit union to issue you a major credit card, like Mastercard or Visa, with a low limit. Make some small purchases and pay them off at the end of the month. You can also find low-limit credit cards through colleges and universities, if you are a student or on the Internet.

The most important thing to remember when establishing credit on your own is to pay your bills or time, every time. If you re-marry, be sure to keep some credit in your name.