A credit report is more than just a summary of how a person repays their debts. In many ways it can offer a deeper reflection of the character of a person than can any other indicator. On one side is the borrower with a high score, perfect trade ratings and no public records or collections. On the other side is the borrower with the rolling delinquencies, repossessions and collections. Quite often when spouses enter in to a marriage from both sides of the spectrum the end result is divorce.

If you have gone through-or are considering-a divorce, take a close look at the issues involving your credit. Pay attention to the status of your credit accounts. If you maintained joint accounts during your marriage, it is important to continue to pay the regular required payments. As long as there is an outstanding balance on your joint account, both you and your spouse are responsible for payment. Generally, any debt incurred by your spouse is also your responsibility, regardless of whose name is on the account.

If you are contemplating separation or divorce, you may wish to contact your creditors in writing to ask that they close your joint accounts (or accounts where your spouse is an authorized user). The creditor cannot close a joint account because of a change in marital status, but they may close a joint account at either spouse’s written request. The creditor does not have to change a joint account to an individual account, and may ask you to reapply for a credit account as an individual and then, on the basis of your application, extend or deny you credit.

Consulting an attorney regarding these sensitive matters is always prudent.

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Sincerely,

Tim Barlow

Cornerstone Home Mortgage
www.timloans.com
Tel: (360) 570-0106
Fax: (360) 570-1001
Direct:(360) 250-3400
3604 Henderson Blvd. SE
Olympia WA 98501