Single Again - Refinancing Debt
When working to refinance debt that was acquired with a co-borrower, there are a few things to consider.
The current debt is the contractual obligation of both borrowers. Regardless of divorce decree and arrangements between the borrowers, if the debt is unpaid, both borrowers are held responsible.
Taking a careful look at your credit report, early and often as you start fresh is an important component of a quick transition. Identifying and watching the shared credit obligations on your credit report will help prevent surprises and often lead to a better credit score.
How you time the closing and opening of accounts can significantly impact your credit score, and as a result the rates you will pay on your debt. Discuss the options with a Commonwealth Credit Union loan officer as you get ready to establish new loans and services.