Help for first time home buyers important tips about divorce and your credit

In our previous posts about first time home buyers credit and how it could be impacted by divorce, we talked about: Getting a clear picture, How to handle unsecured credit accounts and How to handle secured credit accounts.

Here are some tips from Linda Ferrari, President of Credit Resource Corporation on how to make sure your first time home buyer credit survives a divorce.
1. MAKE SURE THE BILLS GET PAID-NO MATTER WHAT THE JUDGE SAYS:Regardless of what the divorce decree stipulates, it does not override your account agreements with your creditors. Both spouses are liable and responsible for joint debt regardless of who the judge orders to pay the bill. If the bills are not paid and an account defaults, both spouses can be sued, and both spouses can have their wages garnished. Most late pays occur during the divorce negotiations phase. Don't allow this happen. One 30 day late can drop your score anywhere from 25-75 points, and it takes months to gain those points back.
2. PROTECT YOURSELF IN JOINT ACCOUNT SITUATIONS: The best way to handle joint accounts is to eliminate such accounts whenever possible. Because joint accounts are approved using the information from both spouses' credit reports, a creditor will not remove one spouse's name from an account regardless of the presence of court documents declaring a specific spouse responsible for payment and upkeep.
3. IF YOU DECIDE TO LEAVE YOUR NAME ON A SECURED LOAN ACCOUNT, BE SURE THAT YOUR NAME REMAINS ON THE TITLE: Once your name is removed from the title, you no longer own the asset. This means that if the responsible spouse defaults on the loan, and you have to pay it, you'll be paying for something that you no longer own.
4. FINALLY, putting the action plan to work as early in the divorce process as possible will ensure your credit will be protected to the greatest extent possible. Decisive, quick action will empower you to move forward.

If you're a first time home buyer who is worried about their post-divorce credit scores and would like a FREE consultation with a credit repair specialist, click here.