VIEWS: 19 PAGES: 1 CATEGORY: Debt & Credit POSTED ON: 11/1/2012
Marriage entitles two persons to share everything especially financial activities. If you are married and are someone who have always been careful with your credit score and financial actions, make sure that you don’t let your spouse’s score affect yours. Instead, try to make corrective measures to improve both of your financial standings.
How Your Spouse’s Credit Can Affect Your Credit Score? Marriage entitles two persons to share everything especially financial activities. If you are married and are someone who have always been careful with your credit score and financial actions, make sure that you don’t let your spouse’s score affect yours. If you see that your spouse’s score is relatively low, immediately make corrective actions to ensure that your credit history will remain clean and free of any financial-related negligence. There Is No Such Thing as a Joint Credit Score A large number of couples make presumptions that their credit scores will be automatically merged when they get married. However, in reality, credit scores cannot be combined. Each individual is given a credit score based on their social security number. This is positive news for a person who works really hard in having a good credit history. But, always keep in mind that joint financial activities can affect your credit score indirectly. If you and your spouse plan on applying for joint car loans, home loans or any type of loans, the lender would have to check not only your score but also your spouse’s. If your spouse has a low score, then there is a chance that you might be refused. This will hurt your chances of getting other types of loans from other lenders because of negative information that will show up on both your credit histories. However, if approved of a loan, expect to be given a higher interest rate. How Will You Be Affected Of Your Partner’s Bad Credit Score? If the credit score of your spouse is relatively low, expect that all your hard work in trying to create a good financial status will be affected negatively. Below are some examples of how your spouse’s score can affect your financial standing. 1. It will become difficult to get your loans approved: The low score of your spouse might result in major setbacks when trying to apply for joint loans. It might give lenders a negative impression and will make them uncomfortable in approving you a loan. There is a chance that you end up getting rejected or approved but with a higher interest rate. 2. It might stall future plans: After getting married, couples usually spend their time in planning to go on lavish vacations, building their homes and buying cars. However, these plans might get stalled if your spouse has a bad credit rating. Bad credit ratings affect your chances of being approved loans, not allowing you to be able to achieve these plans. 3. You will be paying off debts created by your spouse: If you know that your spouse has a bad financial credit record, make sure that you do not make him an authorized user of your credit card. This is not a case of not trusting your spouse, but this is a preventive measure that will help you and your spouse avoid encountering financial problems in the future. Credit card handling needs strict discipline. Thus, make sure that if you are using one, pay the bills on time and always keep an eye on your spending. Do not let your spouse’s credit score affect your marriage. Instead, try to make corrective measures to improve both of your financial standings. This will ensure that you will be approved of loans in the future in case; the time comes when the both of you will need it. Joy is an active blogger who shares extremely interesting finance management tips over the web that encourages people to manage their personal finances & check credit score report regularly. Know more on how an ex-spouse can ruin your credit.
"How Your Spouse’s Credit Can Affect Your Credit Score?"