Q: I am going through a divorce and closing all the joint accounts with my wife. I have an excellent credit rating, and I intend to open new individual accounts and pay off the balance every month. What type of card is best for me?
Q: I am going through a divorce and closing all the joint accounts with my wife. As a couple, we purchased everything on credit and paid the balance in full every month. I have an excellent credit rating, and I intend to open new individual accounts and use them in the same manner by paying off the balance entirely every month. My monthly purchases will probably be as low as $1000 and as high as $2500. What type of card is best for me?
A: While I'm sorry about whatever happened to cause your breakup, it sounds like money wasn't a core issue. Too often, I hear about couples who split up after one partner runs up huge credit card bills or opens secret credit cards. However amicable your split, you've got only a little time to take action before you see the impact of your divorce on your credit score.
Since you've already mastered the discipline of paying down your monthly balance at the end of every statement cycle, you may be interested cash back credit cards. The best cash back credit cards require applicants to have excellent credit. While it sounds like you probably already have a great FICO score, closing those joint accounts and requesting instant approvals for new credit cards will cause your score to dip for a few months. Try to get your new individual account set up before closing out any of your old credit cards.
Stay in communication with your wife or her attorney to ensure that any credit cards with your name on them get closed completely. Eliminating the potential for confusion now can prevent major hassles during your divorce proceedings and later on in your lives.