Why Both Spouses Should Each Have An Independent Credit History

Gone are the June and Ward Cleaver days from the show Leave it to Beaver.

Our generation is changing quickly. We are getting married later in life. For women, it’s around 31 and for men, it’s about 34 years of age. First time marriages now have a 67% chance in surviving divorce. Married couples head 84% of our population. Now is the time to understand how important your credit score is for your financial health.

 

Are stay-at-home spouses at a credit disadvantage?

Stay-at-home spouses, male or female, can be at a disadvantage in today’s credit society if they have not already established individual credit prior to entering into marriage. The best advice for both spouses is to build independent credit histories . This is especially important if the marriage breaks-up or a spouse dies. Your partner's credit history is now no longer relevent for you. Also, in case of an identity theft of your spouse, your personal credit rating can support your family purchases until your spouse's credit identity has been restored--only if your credit score is a good one. Obviously if you have bad credit that'll be harmful rather than helpful.

Here’s how to create  your own personal credit rating. 

• Keep some bills in each of your own names after you marry. This will allow for independent credit histories.
• If you don’t have any credit built, apply for a credit card in your name. Make payments on time to create a responsible credit history.
• Getting a personal or car loan in  your name and your spouse's is also another great idea.
• Household bills like water, cable or hydro can also start a positive paper trail in your name.

Awareness is the first step in building a future for your family and strengthening the credit score for you and your spouse. Of course, a strong credit rating comes only from paying your bills over a protracted period of time.

For more valuable information, visit www.prudentcreditrepair.ca

How to Improve Your Credit Rating?

How long will negative effects of bankruptcy affect your credit rating?
There is not a one-sized fits all solution for this question. However, it is important to know that your credit rating can be restored through the right channels.
When you go through a bankruptcy or other large scale social event, you will be able to recover from it within a certain period of time provided you follow the rules of good credit going forward.
The maximum amount of time you can expect to have negative information about your credit history on your account is seven years, but the actual time can vary depending on the event and where you live.

Improving your credit rating will require you to make certain behavioural changes that will help you get ahead. First, you have probably heard this, but you should heed it and always pay all your bills on time. It is better to go without in other areas of your life if you need to in order to pay your bills on time if improving your credit rating is important to you.
If you can't pay your entire bill on time, at least pay the minimum due to avoid future negative credit ratings that will hurt your credit rating and your chances for financial success.

There is another way to improve your credit rating which is called a secured credit card. If you can put down a big chunk of money, say $1000 or more, then you will be able to get a secured credit card. This will make it obvious that you are able to be responsible with credit and that you have good income coming in. A secured credit card is a great way to quickly improve your credit rating.

All in all, it takes time to recover from incurring bad credit. This is not a situation that occurred over night and it doesn't get fixed over night. It is important to remember not to make too many applications for credit when you are trying to recover your credit because every time you are denied it is another black mark on your credit rating. The best thing to do when you are trying to recover your credit rating is to keep a careful eye on your spending.

Don't spend too much and put as much as you can into your bills and staying out of debt. Start to do that and it will heal your credit rating in the long term. For more valuable information, visit www.prudentcreditrepair.ca