Credit Card Rules

Outstanding joint debts are one of the thorniest financial problems after a divorce. The divorce court may allocate your assets and debts, but it certainly can not force the creditors to divide the debts. The creditors can easily agree to change the joint accounts into the individual accounts to accommodate account holders who are divorcing, but there is no provision for them to do so. Even with the joint accounts, a person is always considered to be the primary account holder. The account will remain opened as long as there will be a balance on the account.

If you are not the primary account holder, you need to restrict your ex partner from continuing to use the account. You should write a letter to the credit card company stating that you would not be responsible for any new charges made to the account as of a certain date after it has received your letter. Send the letter certified mail after requesting a signature receipt to keep in your files along with a copy of the letter.

The best move from your end would be is to pay down the balance on the card as early as possible. Get a copy of your credit report and review it to make sure that there is not any other problem. Continue to make payments timely on all your bills. After reviewing your credit report, you should apply for a new credit card. If you belong to a credit union, the card is a good choice for one application. If you are rejected, then try for a secured card.

Credit applications are called credit inquiries on your credit report and they remain on your credit report for as long as two years. You do not want to apply for a lot of cards because multiple credit inquiries make you look desperate for credit and which in turn make the lenders avoid lending to desperate people.