Many men and women find themselves on shaky financial footing after a divorce. In some cases, a spouse may have damaged one’s credit rating. In others, the spouse may have been the one with the strong credit, leaving the other financially abandoned.
One highly effective way of quietly but surely rebuilding one’s credit is the clever use of multiple savings accounts. For example, take $400 and open a savings account at a new bank. Then request a short-term loan secured by the new savings account funds. Typically, banks are happy to loan between 70 and 100 percent of funds secured within a savings account.
After that first short-term loan has been acquired, take those funds and open up another savings account at yet another bank. Again, request a short-term loan against the deposited funds. This can be repeated with as many institutions as you are comfortable. The funds from the final loan should be used to make payments on the previous loans.
The benefits to your credit rating here are coming from two separate sources. On the one hand, lenders can see that you have more than one healthy savings account in good standing. Secondly, paying off multiple loans increases your credit even further. And it’s good to remember that the money in these savings accounts does continue to earn interest, which can offset–to a degree–the interest being charged on the loans themselves. Following a divorce, one can feel vulnerable and somewhat powerless. Taking control of your finances is one way to get the rest of your life back