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JM Collins: Shared credit card accounts and divorce

“There is no ‘divorce’ variable in the report – so the [credit] score is not formulaically impacted,” says J. Michael Collins, faculty director of the Center for Financial Security in this interview with WalletHub. “But pulling apart income, liabilities, and debts can change debt utilization ratios, ages of accounts and other items that will impact scores. Bankruptcy – which one or the other ex-spouse might pursue – will have a starkly negative impact for several years.”

There are three things that you need to remember when dealing with a shared credit card that has an existing balance:  1) Credit card companies just want to get paid, and they don’t care by whom; 2) Card issuers aren’t beholden to divorce agreements; and 3) The payment process waits for no one.

Read the full article at: https://wallethub.com/edu/cc/credit-card-debt-divorce/25552