Frequent Contributor
eparker
Posts: 268
Registered: ‎03-10-2009
Credit Rollercoaster

It's been awhile since I've been here on line.  My divorce has been finalized after over a year.  Needless to say, my credit has taken some hits.  About 8-9 months ago my Eq: was 650 and TU: 620.  Not real high but I was in the recovery stage then.  I had gotten several cards with decent balances, all while going through my divorce.  Well my EQ is now 578 and TU is around 590.  I have been current on all of my bills, but my ex-wife's stuff is still hitting my credit.  A car that is financed in both of our names, and she was awarded the car and has been late. (and she cant get in financed in her name) 

 

I'm really hoping that my credit can only get better since the divorce is final.  I just applied for a BofA secured credit card hoping to help me credit while I attempt to get some negatives off.  I guess I will try and reduce or payoff my credit cards, I only have 3 with balances that are fairly low, 200 range and one with a 400 balance.  I am also attempting to payoff my vehicle that has a balance of $4900 in 8-9 months.  I was awarded another vehicle that has a balance of about $3000 that i am also attempting to pay off in 8-9 months as well. 

 

Will the payoff on the vehicles help increase the score since it is reducing my debt?  Both are in good standings.  Need some good advice and encouragement.  Am I on the right track?  

 

I would like to be above 650 in 6-8 months.

 

Signed, recovering..... 

Starting Score: Mid 500's
EQ-663 TU-686 EXP-698
Goal Score:750+

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Epic Contributor
haulingthescoreup
Posts: 28,098
Registered: ‎04-01-2007
Re: Credit Rollercoaster
Is there any way at all that you can get off that car note? Failing that, can you grit your teeth and make payments if you see that she has been late, before the late hits 30 days?

Paying off installment loans like auto loans makes good financial sense, but if you also have CC balances, they should be paid off first, both for FICO scoring and for good finances, assuming that they're not 0% intro or something. Revolving credit util carries way more weight than installment.

Sorry this has been happening. :smileysad: People get awarded stuff all the time in divorces, but if both parties' names are on the account, both are vulnerable to mishandling of credit.
* Credit is a wonderful servant, but a terrible master. * Who's the boss --you or your credit?
FICO's: EQ 781 - TU 793 - EX 779 (from PSECU) - Done credit hunting; having fun with credit gardening. - EQ 590 on 5/14/2007
Moderator Emeritus
MarineVietVet
Posts: 14,556
Registered: ‎07-14-2009
Re: Credit Rollercoaster
Well I didn't even get a chance to start typing and HTSU has already written a thesis!!!  :smileysad:
Moderator Emerita
Community Leader
Epic Contributor
haulingthescoreup
Posts: 28,098
Registered: ‎04-01-2007
Re: Credit Rollercoaster
Shoot, a thesis? For me, that's a sticky note. Post on!
* Credit is a wonderful servant, but a terrible master. * Who's the boss --you or your credit?
FICO's: EQ 781 - TU 793 - EX 779 (from PSECU) - Done credit hunting; having fun with credit gardening. - EQ 590 on 5/14/2007
Moderator Emeritus
MarineVietVet
Posts: 14,556
Registered: ‎07-14-2009
Re: Credit Rollercoaster

haulingthescoreup wrote:
Shoot, a thesis? For me, that's a sticky note. Post on!

No, you just about covered it.

Frequent Contributor
eparker
Posts: 268
Registered: ‎03-10-2009
Re: Credit Rollercoaster

Can't get off, she can't refi the car.  Thought about making payments, have one car note and added an other one during the divorce.  She also hit me for $25,000. from my retirement.  Maybe she will pay it down (doubt it).  

 

Trying to offset the negative I guess.  Applied for a BofA secured card and waiting on results.  

 

I guess I will wait and see.  Paid off one CC tonight, one more to go with a $600 balance.  Trying to payoff the two car loans next, hopefully in 8-9 mths.  

 

As of today, EQ: 573   TU:  569           

Starting Score: Mid 500's
EQ-663 TU-686 EXP-698
Goal Score:750+

NavChek $15,000/NFCU nRewards Visa $12,000/American Express Rewards Gold NPSL/USAA Rewards World Mastercard $7000/USAA Visa Platinum $7000/Barclay $3900/Credit Union Visa $5000/Jareds $7600/BofA Visa $4000/USAA MC $1500/Walmart $1200//Amazon $1000/Discover Card $750/Cap1 $2250.







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Valued Contributor
GregB
Posts: 1,669
Registered: ‎05-24-2007
Re: Credit Rollercoaster

I would sell her car.

 

You might say that sounds drastic but she has been late on a payment and it hit your credit. If your name is still on the title, you can possibly sell it. You would be violating a court order and you would need to consider the ramifications of that. I can tell you that in the almost 6 years that my divorce has been going on, my to-be-ex has violated many, many court orders with ZERO repercussions. She even embezzled my company truck from my separate property business, sold it and I could do nothing. Check with your attorney first might be a good idea.

 

If you have no real attachable assets like a house, you are in an even better position. You might want to make sure her name is not on your car if it has any value above the loan.

Senior Contributor
O6
Posts: 3,626
Registered: ‎10-13-2009
Re: Credit Rollercoaster

GregB wrote:

I would sell her car.

 

You might say that sounds drastic but she has been late on a payment and it hit your credit. If your name is still on the title, you can possibly sell it. You would be violating a court order and you would need to consider the ramifications of that. I can tell you that in the almost 6 years that my divorce has been going on, my to-be-ex has violated many, many court orders with ZERO repercussions. She even embezzled my company truck from my separate property business, sold it and I could do nothing. Check with your attorney first might be a good idea.

 

If you have no real attachable assets like a house, you are in an even better position. You might want to make sure her name is not on your car if it has any value above the loan.


 

I'd probably have to agree.

 

Generally, situations like these suck.  You do have several options, but some of them aren't very pretty and others may end up being ineffective.  You really should consult with your attorney.

 

Some options that I have seen work are ...

 

1.  Make the payment for her, sue her in small claims court for the payment amount and garnish her wages.

 

2.  Make the payment for her and offset the payment amount with what you owe her under a different concept.

 

3.  Sell the car out from under her and then give her the money you received for it.

 

4.  Go back into family court on a Motion to Show Cause and try for a contempt hearing.

 

5.  Go back into family court and get a modification of the decree terms so that you pay off the $5,000 car, but she gets $5,000 less of your retirement.

 

The bad thing in situations like these is that the one spouse (probably her) already has terrible credit so they have nothing to lose by bringing the other (you) down with them.

IAALBNYL
Valued Contributor
Uborrow-Upay
Posts: 2,708
Registered: ‎10-16-2008
Re: Credit Rollercoaster

GregB wrote:  "...in the almost 6 years that my divorce has been going on, my to-be-ex has violated many, many court orders with ZERO repercussions..."

6 years of dealing with all this?  Jeez, GregB...I'd have freaked out by now.  You have my sympathy (and respect).

 

OP, I agree with the advice about selling the car out from under her.  Stop the bleeding (credit-wise) now, and worry about the repercussions later.