Separated or Divorced

If you have become separated or divorced, an established and acceptable credit record can be an important asset. It makes obtaining credit easier and less expensive, especially at a time when credit could help you achieve adjustments you may be making in your life.

(a) Separated but not divorced

The individual who is separated but not divorced has proven to be one of the most difficult areas for the credit grantor because the financial circumstances for that individual may be so variable.

Often times there may be some animosity between the husband and wife during separation and divorce. Frequently, advice is given not to pay any accounts until the divorce is final. Therefore, some credit granting firms suspend additional credit during this time because of their experience in dealing with problems of this nature.

It is very important, however, to continue payments during this time because the policy of most firms is to report delinquent accounts to the Credit Bureau. As a result, delay of payment may impair future credit.

If circumstances in the relationship change, either party can withdraw privileges to credit by notifying the creditors to stop extending credit. It is recommended that a notice be inserted in the newspaper and one your credit bureau file stating non-responsibility for future credit granted to your partner. However, filing a notice of non-responsibility does not cancel your contract nor exempt you from your agreement to pay your creditors. You are still bound to the terms of the credit contract you have signed.

(b) The Divorced Individual

If, during marriage, individuals have had joint credit accounts at various businesses, it is usually recommended that the joint credit account be closed and new individual accounts be opened. If you have an established source of income in your profession and your accounts have previously been handled in a satisfactory manner, there should be no problem opening the new accounts, and in obtaining future credit. This will enable you to obtain or maintain your own credit history in a satisfactory manner. It is important for you to contact all relevant credit grantors directly to apply for the new individual accounts and to request that they report your account history in your name only.

The Widow/Widower

Once a person becomes a widow or widower, it will be advantageous to change existing credit accounts as soon as possible. Usually all that is necessary to make the change is to complete a new application form with a notation that the account was previously carried in the deceased spouse's name.

The satisfactory performance of the credit account in the past should be sufficient, providing your financial position meets the requirements of the firm, for the account to be transferred to your name.