4 Life Events That Can Affect Your Credit Score

4 Life Events That Can Affect Your Credit Score

Your credit score gives banks and lenders a snapshot of your financial history. Though your credit score is based on economic data, your finances reflect your life situation. When you work with credit reports, you realize that you can often tell a lot about a person’s past by the things listed in their report. Everyday situations that most people face can have predictable effects on their credit. Here are four life events that can affect your credit score and how you can handle them.

Student Loans

The U.S. student loan debt is believed to exceed $1.5 trillion, a debt so high that it exceeds credit card and auto loan debt. Many former college students have trouble paying these loans, and the debt can have a significant effect on credit score. Unlike other debts, federal student loans are not subject to the statute of limitations and cannot be discharged through bankruptcy. Besides hurting your credit score, defaulting on student loans can lead to collections, wage garnishment, and tax refund offsets. Alex Miller Credit Repair helps people with student loan issues by showing them options to repay the loan and get out of default status.

Military Service

Members of the military face unique challenges regarding their financial situation and credit and these scenarios can show up in credit reports. When service members are deployed overseas, their accounts back home can become delinquent if they don’t have access to them while on deployment. To combat these situations, the Serviceman Civil Relief Act (SCRA) was created to protect soldiers’ credit and finances while they are deployed. The act gives them protection against default judgments, since soldiers may not be able to make a court hearing. If you find yourself in this situation, Alex Miller Credit Repair can help you get your case reopened.

There are also rules related to the maximum amount of interest that can be charged to active duty service members and remedies for evictions that occur during a deployment or relocation.


Divorce can be expensive, and it can wreak havoc on your credit if you aren’t prepared. When you get divorced, it’s a good idea to cut off access to any joint accounts that you are responsible for. Removing their access to joint accounts prevents situations where your ex-spouse can take money from the account or use it to open lines of credit. Similarly, you should check your credit report to ensure there are no charges that the court said you would not be responsible for paying. Recently divorced individuals also have to resist the temptation to live beyond their means. It’s not uncommon for newly divorced people to increase their credit card debt at a time when they need to be thinking about reducing their expenses.

Identity Theft

Unfortunately, identity theft is becoming something that many people experience at some point in their life. Online services have made it easier for people with stolen credentials to open lines of credit and make unauthorized purchases. For some people, the first sign they have of identity theft trouble comes when they get a call from a collection agency about an account they never opened. Other victims see unexpected and unrecognized charges on their open accounts.

Going through your monthly statements with a fine-tooth comb is the best way to catch identity theft before it goes too far. Identity theft can also affect your credit report. Victims will see accounts on the report that they never applied for. Another indicator that something is amiss is when you see a hard inquiry on your credit report for an account you never asked for. Alex Miller Credit Repair can help resolve issues on your credit report related to identity theft.

If you want to fix your credit quickly, contact Alex Miller Credit Repair. We can help you see improvements in your credit score within a couple of months. Send us a message online to schedule a consultation where we’ll discuss the things we can do to help you.

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