With divorce comes a lot of heartache and havoc. Calgary has one of the highest divorce rates in the country, confirming with the trend in its parent territory, Alberta. The chances that you or someone whom you know has suffered through the havoc of divorce are quite high if you are in Calgary.
And in the run up to the divorce and after, if you also have seen your credit scores plunge, you are not alone. A lot of divorces are accompanied by disastrous credit score drops for unsuspecting spouses.
If your credit scores have suffered during your divorce, it’s time you go about credit rebuilding.
Divorce Doesn’t Affect Your Credit Score
To make it clear, divorce doesn’t directly affect your credit score. But, the mortgage you co-signed with your spouse could be the biggest culprit for lowering your credit score. This is why a divorce mortgage in Calgary can be so important.
Your credit score can take a real hit if the joint mortgage you had taken on with your spouse before divorce wasn’t paid out on time. In all probability, it was your ex-spouse who was supposed to make the regular payments, but he just didn’t bother to or was incapable of making regular payments.
Either way, the joint mortgage that wasn’t paid on time has affected your credit scores adversely!
But, you may already be asking the most pertinent question here, which is why anyone should go with a divorce mortgage. The court may have decreed that the mortgage you opened with your spouse during your marriage is no longer your responsibility. In cases like this, a divorce mortgage in Calgary might be just what is needed to patch things up.
The decree of the court doesn’t free you from the contracts that you already have in place with the lender.
Any missed payments by your spouse who was responsible for paying the mortgage, will affect your credit score.
Now, it is time for you to get to rebuilding your credit!
Rebuilding Credit with Credit Rebuilding Loans
After the mortgage you jointly opened during marriage has sent your credit scores plunging, it might put your finances in trouble.
With the lower credit scores you might find that you cannot find a line of credit for rebuilding your life. If you find yourself in such financial conditions, it’s time you consider rebuilding credit with Credit Rebuilding Loans.
Credit Rebuilding Loans are also called Bad Credit Loans, as they are given to people with bad credit. These are secured loans secured with something you own (home, car, etc) for the perceived high risk of loaning to low credit score customers.
Credit Rebuilding Loans are not offered by banks. These loans are only offered by specialized licensed lenders.
These loans come at higher interest rates and often will give you a lower loan amount.
Rebuild with a Guarantor
Guarantor Loans are another version of Credit Rebuilding Loans, where a guarantor (either family or friend) will co-sign and secure your loan and ensure that the loan is repaid in time if you forfeit.
You will get lower interest rates and higher loan amounts with this type of loan.
But finding a guarantor might often prove to be tricky.
The How To of Rebuilding
Doing the opposite of what undid your credit score would do the trick.
Pay the installments of the Credit Rebuilding Loan or Guarantor Loan regularly. This will help rebuild your credit score.