How your partner can ruin your credit standing

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By: tiarajoseph11
on 19th Sep,2012

You cannot deny the fact that financial distress can ruin your happy married life.
How your partner can ruin your credit standing


You cannot deny the fact that financial distress can ruin your happy married life. So, there's no harm in checking your spouse's credit report from time to time and help him/her to fix the negative items. This is because your partner's financial habits can also ruin your credit, which in turn, can affect your financial future. Here are a few tips to keep financial misunderstanding away from your married life.

 

  • Check out each other's credit reports - When you decide to get married, you should check each other's credit reports to know about each other's financial situations. You should know high debt-to-income ratio can lower the credit score. So, help your spouse to pay down the outstanding debts as early as possible. If one is carrying high debt, sit down and make a debt relief plan by following which you can solve your debt problems. You should also continue checking both of your credit reports at regular intervals so that you're aware of any negative items, which you need to fix or dispute. It is better if any of you take the initiative to check credit reports at regular intervals and then both of you discuss and take necessary actions required.
  • Help your partner to build a credit history - It is quite important to have a credit history in order to obtain loans. So, help your partner to build a credit history if he/she doesn't have one, otherwise it may affect your credit score if you decide to combine accounts. However, as this process takes a while so you can consider combining your accounts a little later till a satisfactory credit history is built.
  • Do not use the entire credit available to you - Always make sure that you and your partner do not use credit cards for each and every purchase. The idea is you should not use your entire credit limit as otherwise it may be harmful for your credit score. It is better to limit your usage to 30% of your available credit limit. And, always pay your bills at every billing cycle and do not carry forward your balances. It will help you have a great score as well as you can save dollars which you otherwise need to make as interest payments.
  • Set reminder for bill payments - Do you know that one single late payment can lower your credit score by about 100 points? Yes, it is true. So, never pay your bills late. Set reminder in mobile phones 2 days before the due date for both of your bill payments and pay them on time. The best way to remember due dates is to paste the bill payment dates on your refrigerator so that every day you can have a look at them.

By following these tips, you can prevent your partner from ruining your credit standing and also helping him/her to have a good credit report. This will help you take out loans at favorable terms and conditions along with lowering your insurance premiums. So, in short, it can be said that a good credit score can help you enjoy a better lifestyle along with enjoying a happy stress life with your family. 

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