So, congratulations: You're married. As expected, your wedding and the honeymoon probably exceeded your expectations; and, of course, so has your life partner.
As each day passes in this new life you've embarked on €" with both of you sharing the same roof, for starters €" you will get to know every detail about your spouse. You share your hopes, dreams, plans for the house, ideas for travel, and even plans to have kids. It's all well and good. And then you discover that your spouse has bad credit.
What do you do?
What is a husband or wife to do when they realize they've entered into a bad credit marriage?
Effects of Bad Credit in Marriage
Bad credit affects a marriage relationship in so many ways, that it can potentially even run this relationship. Learning that your spouse has an unfavourable credit score can result to many negative things. Here are some of the common bad credit effects in marriage:
1. Dishonesty. One effect of bad credit in a marriage is dishonesty. It could be that your partner has lied to you or kept you in the dark about the issue. Since honesty in every aspect of the relationship is vital to a marriage, both spouses need to come clean with each other about their credit scores €" and attempt to do something proactive about it.
2. Lowered credit score of the spouse. If your partner has poor credit and you applied for a new account, your credit score might be affected if you use your married name.
3. Denial of home loans. When you apply for a home loan as a married individual, it may turn out to be a bad credit loan because you share the same name.
What to Do If Your Spouse has Bad Credit
1. Assess your spouse's credit score. You can do this by asking a print out of the credit score from any credit bureau. You have to prepare a certain amount to get credit score information.
2. Keep your credit in your own name. This would make it easier for you to apply for new accounts. You could apply for loans or new accounts together when your spouse's credit score gets better.
3. Study the credit card debt and pay it down. Talk as a couple and pay your spouse's debt at the soonest. Doing so will replenish your spouse's credit score. This can be helped by paying your bills on time. Avoid late payments because they will count against your credit score.
4. Keep your own accounts, separated from your spouse. Only consider a joint account when your spouse's credit score changes for the better. Balances in credit should be maintained below 30 percent of the set limits.
5. Plan your savings and track your financial goals. As a couple, you should be comfortable enough to discuss about your financial goals. Tracking and handling finances could actually bring you together. Try your best to have a monthly savings for emergencies so you won't have make use of your credit cards.
According to Vivi Friedgut of Huffingtonpost, €The opportunities to choose our own path, and the freedom to pursue it, are the purview of those in control of their financial destiny. Being financially dependent can have terrible consequences...€ This is applicable to both men and women. Marriage should not be the solution to having poor credit. Also, it should not be affected by credit at all. A good marriage will be made stronger even with consequences like unfavourable credit scores.
As each day passes in this new life you've embarked on €" with both of you sharing the same roof, for starters €" you will get to know every detail about your spouse. You share your hopes, dreams, plans for the house, ideas for travel, and even plans to have kids. It's all well and good. And then you discover that your spouse has bad credit.
What do you do?
What is a husband or wife to do when they realize they've entered into a bad credit marriage?
Effects of Bad Credit in Marriage
Bad credit affects a marriage relationship in so many ways, that it can potentially even run this relationship. Learning that your spouse has an unfavourable credit score can result to many negative things. Here are some of the common bad credit effects in marriage:
1. Dishonesty. One effect of bad credit in a marriage is dishonesty. It could be that your partner has lied to you or kept you in the dark about the issue. Since honesty in every aspect of the relationship is vital to a marriage, both spouses need to come clean with each other about their credit scores €" and attempt to do something proactive about it.
2. Lowered credit score of the spouse. If your partner has poor credit and you applied for a new account, your credit score might be affected if you use your married name.
3. Denial of home loans. When you apply for a home loan as a married individual, it may turn out to be a bad credit loan because you share the same name.
What to Do If Your Spouse has Bad Credit
1. Assess your spouse's credit score. You can do this by asking a print out of the credit score from any credit bureau. You have to prepare a certain amount to get credit score information.
2. Keep your credit in your own name. This would make it easier for you to apply for new accounts. You could apply for loans or new accounts together when your spouse's credit score gets better.
3. Study the credit card debt and pay it down. Talk as a couple and pay your spouse's debt at the soonest. Doing so will replenish your spouse's credit score. This can be helped by paying your bills on time. Avoid late payments because they will count against your credit score.
4. Keep your own accounts, separated from your spouse. Only consider a joint account when your spouse's credit score changes for the better. Balances in credit should be maintained below 30 percent of the set limits.
5. Plan your savings and track your financial goals. As a couple, you should be comfortable enough to discuss about your financial goals. Tracking and handling finances could actually bring you together. Try your best to have a monthly savings for emergencies so you won't have make use of your credit cards.
According to Vivi Friedgut of Huffingtonpost, €The opportunities to choose our own path, and the freedom to pursue it, are the purview of those in control of their financial destiny. Being financially dependent can have terrible consequences...€ This is applicable to both men and women. Marriage should not be the solution to having poor credit. Also, it should not be affected by credit at all. A good marriage will be made stronger even with consequences like unfavourable credit scores.
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