Credit Repair

Can You Help Your Spouse in Improving Credit?

The worst thing about bad credit is that it doesn’t go away easily. When it comes to , there are plenty of things that a person can do, but the process can become much easier and smoother if he/she gets help and support from his/her spouse. You can help you spouse in getting rid of the bad credit situation. Following is a brief rundown on how to go about it.

Bite the Bullet Together

The payment history is the most important factor that influences the credit worthiness of a person. If your spouse has been making defaults or has been late on the monthly installments, you can offer help in making the repayment. For example, you can consider using your credit card for this purpose, especially if you have good credit. You can then accelerate the credit improving process by making gradual payments on the amount, obviously without making further defaults. The faster the debts are eliminated, the sooner your spouse will be able to achieve a better score.

Open a Joint Bank Account

A joint bank with a positive balance can be very helpful in improving credit over a certain period of time. You should see a significant improvement within six months provided the account doesn’t face any major problems. When you open a joint bank account, your spouse may get very limited access to it. You can ask the bank representatives to explain what you can do to remove those limitations. Follow their advice.

Transfer the Utility Bills in the Name of Your Spouse

The idea is not to transfer the liability. You just have to put these bills on your spouse’s name while you can continue making the payments from your credit cards or checks. It doesn’t matter much that who is making the payments. The point is that when your spouse is getting utility bills in his/her name and all those bills are getting paid in a timely manner, it will also have a very good effect on his/her credit score. Remember, if you do not pay the bills in time, it will further damage the credit situation of your spouse. You have to be financially disciplined if you are serious about helping your spouse in improving credit.

Co-Sign Loans

A proven way to increase the credit worthiness is to obtain new loans and pay the installments regularly. It should improve the credit situation within a few months. Since your spouse may not be able to qualify for low-rate loans because of his/her poor FICO score, you should consider becoming a co-signer. When you co-sign a loan, you become liable to make the repayment in case the borrower fails to do so. You just have to make the repayment on schedule to achieve a better credit for your life partner.

While you are trying to help your spouse to get out of the , you have to be very careful in your approach. Follow only those strategies for improving credit that you can afford to follow. It is not worth damaging your own credit situation in order to build better credit for your spouse.

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Posted in Build Your Credit, Credit Repair | 2 Comments »

2 Responses to “Can You Help Your Spouse in Improving Credit?”

  1. Michael says:

    Very informational tips! This article basically gives the fruitful information to help and improve in Credit System. It is very right that you should transfer the utility bills in the name of your spouse. With this process, the bills will be pay in time and your spouse can get the good credit score and be more responsible. Also, if we open a joint bank account, it can be helpful in improving credit over a certain period of time. But, there should be a condition that either one of you or your spouse has a good credit record. If you will provide the help and support to the spouse, it will improve the process and become very easier and smooth. It is also important that you should always pursue those strategies that you can offer to follow. According to me, the following are some easy and smooth points to get the same.
    - You should be much disciplined in financial terms.
    - You should pay the installments at exact time. Never late on Monthly installment.
    The nastiest thing about bad credit is that it does not move easily. It is my personal experience and I suggest every one to track on above mentioned tips. These tips can help your spouse in getting free of the bad credit situation.

  2. katrina says:

    Bad credit will definitely affect the spouse in future. If a one person has good credit scores and if partner one has less credit score then it advisable to take all the financial decision on the person who has good credit score because it will be approved with better rate of interest. This will not only maintain a good relationship with creditors but also the amount given can be at lower rate. Some married person they both apply for credit jointly in order deal with this issue. Some time it is not approved or leads to pay very high rate of interest. So the solution of this problem is to improve your spouse credit score by paying the amount on time. If your spouse credit score improves then it will help you to apply for credit jointly .Every one should have to compare their score with their partner and improves if necessary. Through this way they can definitely save lot of money.

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