Once a divorce is made final, Colorado residents should turn their attention toward building a strong financial foundation for the years ahead. For those who are fortunate, the outcome of the property division process will help to create a solid base from which to build upon. Obtaining new lines of credit is an important part of that process for many people, but it can be hard to know where to begin.
The first step lies in assessing one's current credit situation. List the number of open credit cards. This is also a good time to check that one's ex is not still listed as an authorized user on each account. Part of the property division process involved determining which party would be responsible for credit card debt, so make sure that the agreed-upon changes have been made to open accounts.
Next, consider opening new credit card accounts to bring the total number up to between three and five cards. Experts believe that is the optimal number of open accounts to increase credit scores. Take the time to review both current and new credit card terms, as there may be better options currently available. Reward plans are great options, but be sure to pay close attention to the interest rates, fees and other terms, as that is where credit cards can become expensive.
Crafting a post-divorce financial plan is an exciting process. This is a time to build for future stability and success. Making the most out of the end results of property division and taking steps to boost credit are part of that process. Taking charge of one's financial future can help Colorado residents improve their money management skills, and also bring about peace of mind, which is beyond value.
Source: nerdwallet.com, "How To Assess Your Credit Card Needs After Divorce", Virginia C. McGuire, April 13, 2017