Next stop: Splitsville. In the United States, half of all marriages end in divorce. That’s a sobering statistic, and one that changes the face of the modern family. But when a marriage ends, there’s more that happens than just a relationship ending. It reaches every part of your life together, and that includes finances. But does divorce affect your credit rating?
How Does Divorce Affect Your Credit Rating?
If you’ve ever gone through a divorce, you know how tricky it can be to navigate the financial stuff. You’re more concerned about the emotions, and often it’s even vindictive. Who can inflict the most pain for the other party? But if you aren’t very careful, you’ll let divorce affect your credit rating. Here’s how.
Bills Go Unpaid
“Those bills aren’t my responsibility. I paid them last month.” Expecting that finances in a messy divorce will be fair is like wishing on a star. It’s a dream that doesn’t often come true. Quite often, bills go unpaid because both people don’t think it’s their turn to pay them, or it’s not their responsibility. It doesn’t take many months of unpaid bills to damage your credit.
You Don’t Have the Same Cashflow
When you were a dual-income family, you had no problem getting approved for a loan. Now, on your own, you don’t make enough money to get a new loan or lease.
You’re Stuck With More Responsibility than You Thought
You fought for the house and the car, and you got it. Now you need to figure out how to pay the mortgage and car payment, and it’s out of reach. What was supposed to be a win for you is suddenly a massive burden! If you’ve gone through it, you know it’s true that divorce affects your credit rating. If your credit has taken a hit, Jay Wolfe Honda can still help you get a new car. Whether it’s because of divorce, job loss, missed payments or otherwise, our finance team will work with you to get you the Honda you deserve. Call us, stop in, or fill out an online credit application to get the process started!