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Identity Theft and Credit Card Fraud Statistics for 2019

Identity Theft and Credit Card Fraud Statistics for 2019

For more information and to view the full report go here: www.fool.com/the-ascent/research/identity-theft-credit-card-fraud-statistics/

The post Identity Theft and Credit Card Fraud Statistics for 2019 appeared first on Karen "KJ" Lodrick.

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credit during divorce

10 Tips For Protecting Your Credit During Divorce

credit during divorce

 

Divorce isn’t pleasant for either party. While dealing with the emotions surrounding the divorce, the idea of entering the dating scene again, or starting a new life as a single person, financial issues can seem like an even larger problem to manage.

Don’t let finances be overlooked as you handle the relationship aspects of the divorce. When you separate or divorce your spouse, you need to protect your money and financial future as soon as possible. Here are actionable ways that you can keep your finances and credit intact during the divorce process.

Protecting Your Credit During Divorce

1. Close all joint accounts

If you and your spouse hold joint bank accounts, you’re equally responsible for them, especially any debts. Don’t risk your spouse accumulating more debt or making late payments. Because both of you are named on an account, both of your credit scores will be impacted by actions on the account itself.

2. Call your Creditors

Once your joint accounts have been closed, you should contact any remaining banks, lenders, or credit card companies about the divorce. Many institutions will require a certified letter. When you speak with the creditors, request a current account statement and let them know that you will not be liable for any debts after the date on the certified letter. You should also request the account be set as inactive. This will prevent any new charges from being made. Let them know that once any balances are paid in full that you would like the account to be closed entirely.

3. Request Monthly Statements

For any accounts that are currently outstanding, request that monthly statements be sent directly to you. You should also request this for accounts that are not able to be closed or accounts that will be remaining open. Keep an eye on the accounts and track that payments are being made on time.

4. Make a Decision about Owned Properties

Often after a divorce, women want to stay in the home especially if there are children in the picture. Depending on the housing market where you live, it may or may not be a great decision to keep the marital home. If the market where you live has consistently appreciating value, you may want to continue to build equity in the home. If you can afford to stay in the home and the market it good, you should consider doing so. However, if there is a large amount of debt in the home and you cannot afford it, it is more of a liability than an asset to you.

5. Keep Your Contact Information Up To Date

If you do move following the divorce, be sure that you submit a change of address request with the post office. You’ll want to ensure that your bills, financial statements, and any other important documents are being sent to your new residence. Missing payments on bills because you didn’t change your address is an overlooked way to damage your credit quickly.

6. Don’t Spend Money to Get Revenge

It’s common for people going through a divorce to try and “get revenge” on their ex-spouse by spending huge amounts of money on shopping sprees. This tactic will usually come back to haunt you financially or even in the divorce proceedings. Try to maintain your normal spending habits and get control of any debts that you have. A shopping spree during a divorce will likely be marked by a judge as marital debt and order the individual who did the shopping to be responsible for it.

7. Think before you use your credit cards

If you’re still using credit cards during your divorce, be wise about how you use them. Try to pay all of your credit cards on time, or at least make the minimum payments towards the balance. Don’t max out credit cards if you have large legal bills or other expenses that are divorce-related. A large portion of your credit score is based upon the credit card debt that you have. An individual with a high credit score will have low credit card debt. You’ll want to avoid any of your accounts from going to collections. For more information on removing collections from your credit report, read this blog post from Crediful.

8. Monitor Your Credit Reports

Once your divorce is completely finalized, you should continue to monitor your credit report. Check for any errors that might arise from the time you were married. There are many online options to request a free annual copy of your credit report.

If you believe you may be at risk for identity theft or your ex attempting to open joint accounts after the divorce is finalized, you should also consider utilizing a credit monitoring service, especially if your ex knows your social security number and other personal data.

9. Put a hold on any of your credit files

If you’re concerned about your ex going on his own revenge streak, you should put a hold on your credit accounts or a fraud alert. By doing so, any action that is made on your credit accounts will freeze your credit files and prevent your ex from opening new credit card accounts in your name or using your social security number.

10. Utilize civil court actions if necessary

Even if your ex was ordered to pay specific debts when your divorce was finalized, if they don’t pay you’ll want to pay off those debts or risk damaging your credit. While this doesn’t really seem like a fair situation, you can try and recoup the money by taking your ex to civil court for not following the court order.

After a divorce, both parties typically just want to move on personally and financially. If you can take action as soon as possible, you can mitigate potential credit and debt problems from adding more stress to an already stressful situation.

The post 10 Tips For Protecting Your Credit During Divorce appeared first on Divorced Moms.

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divorce can impact your credit score

How Divorce Can Impact Your Credit Score

divorce can impact your credit score

 

Divorce doesn’t directly affect your credit score, because your credit score doesn’t rely on your marital status. However, a divorce can impact your credit score.

Learning how the indirect effects of divorce can bring down your credit score allows you to navigate the waters in advance so you can retain your credit rating and continue to make purchases.

6 ways divorce can impact your credit score.

Your Ex-Spouse Doesn’t Pay Your Joint Bills

If you have any joint credit accounts with your ex-spouse, such as credit cards, car notes or a mortgage, someone has to pay these expenses. If the judge in your divorce case rules that your ex-spouse has to pay certain bills after the divorce, it’s important that you make sure that they do. If your ex-spouse isn’t so worried about his or her credit, then they may not have an incentive to pay unsecured bills or even bills that are secured with assets that belong to you.

Whoever has their name on the account will be responsible for payments of the bills. If they are in both names and don’t get paid, then both parties’ credit scores are at risk of being lowered. The solution is to be on decent speaking terms so you know if the other party is paying their portion of the bills.

If you are not on good terms, the option for you is to pay both parties’ portion of the bills no matter who is responsible for them according to your divorce agreement. You can try to recover the money by reporting your ex-spouse’s nonpayment to the court. You just don’t want it to have a negative effect on your credit score.

Non-Disclosure of Debt

During the divorce process, both parties are required to disclose all of their financial accounts. Some people are not forthcoming about their finances and assets. You can run a credit report for yourself to ensure you are aware of every account that has your name on it. Sometimes a spouse will put your name on an account you are unaware of and then you will also be responsible for payments.

You are Unable to Pay Your Bills

If you went through a messy divorce, you likely have spent a large amount of money on an attorney. If your spouse was the source of primary income in your marriage, you may now have trouble paying the bills by yourself. This can lead to late payments on your part or high credit usage to pay bills with your credit cards. The most important item that makes up your credit score is your payment history and even anything less than perfect on-time payments of even 99 percent may hurt your credit score. If you can’t pay your bills, your credit score will likely decrease.

On the other hand, if you are using your credit cards because of lack of income, then you can be using too much of your credit. Using any balance to limit ratio over 30 percent can decrease your score and limit your financial options for the future.

You can free up more cash to put toward your bills by increasing your income or decreasing your spending. The best scenario is to do both simultaneously. To earn more money, you can seek a higher paying job or work overtime, take a second part-time job or freelance in your spare time. You can cut spending by cutting back on cable fees or subscription costs and limit your personal care and restaurant spending. Do you really need a $5 cup of Starbucks each day? You get to decide which areas you are most willing to give up discretionary spending.

A Vindictive Ex-Spouse

Many marriages end on a sour note and a spouse can be vindictive. If there is a lot of drama and your ex-spouse is angry and has access to your credit accounts, they may decide to use your accounts and rack up phenomenal debt in your name. This is common when you get a credit account in your name only, based on your credit rating and allow your spouse to be an authorized user of the account. If this happens, you may not be able to pay the bills for your credit accounts or credit cards and it can severely hurt your credit score.

The best solution to this predicament is to remove each other from all individual credit cards or credit accounts as soon as possible–even better if you are able to do this before the divorce is finalized.

Decreased Credit Limits

Many creditors and lenders will check on their clients at regular intervals to see if they have a change in their income level. Most credit card agreements have a statement that your credit limits can be decreased at their discretion. If one spouse made a significantly more amount of money and the credit accounts are separated, a creditor can choose to low the credit limit for one or both parties. This can affect your credit score and your ability to get more credit.

Refinancing the Home

In order to get the marital home into one ex-spouse’s name, most lenders will require that your mortgage is refinanced using only the one spouse’s credit. This can put a great strain on the spouse that is awarded the home if they can’t make the payments easily and it can potentially add a lot of debt for them too.

The best idea is to try to be amicable with your ex-spouse. Let’s face it; sometimes a household bill will go unpaid as an oversight during the divorce proceedings. Each party should communicate with each other over the shared financial responsibilities in order to work together and ensure that everyone’s credit remains in good standing.

The post How Divorce Can Impact Your Credit Score appeared first on Divorced Moms.

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