In the middle of a divorce now, we have 1 credit card that is close to maxed out on its $25k limit, it will be paid off in full and closed as part of the the settlement. This is the 1 and only credit card I have had the last 15 years of marriage. Do I apply now while I have a near maxed out credit card? Or do I wait until it's paid in full and closed out before reapplying? Also, the card was with Bank of America. Is there any benefit to stick with them in terms of getting a higher credit limit/lower rate?
When and where to apply for a credit card after divorce?
byu/RemarkableDonut2676 inpersonalfinance
Posted by RemarkableDonut2676
2 Comments
Apply now while you still have the existing card – closing your only line of credit will tank your score temporarily since you’ll lose all your credit history length and utilization will go undefined. Get approved for a new card first, then close the old one after the divorce settlement
As for BoA, they might actually be hesitant to approve you for a new card if they’re about to eat a loss on the old one being paid through settlement, so might be worth looking elsewhere like Chase or Discover
Do you have your own income? During my divorce I was denied until I got a job and had an income to report