The repercussions of marrying into bad credit

The repercussions of marrying into bad credit

In a relationship, there are many issues that can come about when it comes to money. Credit worthiness can be a tricky subject to delve into with your partner – especially when trying to divulge that your credit rating is a little more red than black. When one partner has excellent credit and begins a relationship with a new partner that has made mistakes in the past leading to a lower credit rating it can be difficult to begin a dialogue.

There are many things to remember when you marry into bad credit. Just because you are signing nuptials, does not mean that you are going to be effected by the lower credit rating. When you apply for a loan, credit card or other type of credit – unless you are applying for a joint account, the creditor does not have the permission to check the credit report of your spouse, unless their name is on the application. If you prefer to keep your credit histories separate, until the bad credit issues have been resolved – it can be crucial to discuss this early on in the relationship.

How are you going to deal with money in the relationship? Are you going to share finances? If one partner in the relationship has had money problems in the past leading to less than great credit, than it may not be a great idea to put this person in charge of the finances, unless they have demonstrated that they have changed their bad credit ways and are making amends to increase their credit score, repay old debts and improve the health of their finances.

Unfortunately, when a couple marries, there are larger loans that the couple thinks about – in order to further themselves in their financial goals. A mortgage is one of these loans. The income of both partners will allow them to obtain a larger mortgage, but – how will the less than great credit affect the outcome of the loan? The higher risk that a consumer appears to the credit card agency or mortgage agency – the higher interest rate that will be offered on the loan. There are many solutions to this problem. Simply waiting until better credit has been established, while saving a larger down payment could decrease the effects of the bad credit score on your partner’s side. Many lenders are more willing to work with potential homeowners that are offering a larger down payment that can be applied against the mortgage.

Until the credit history has been repaired, or is on its way to being repaired it is best to keep the finances separate. The partner with outstanding credit can teach the other partner methods to improve their credit score while co-signing for credit cards to ensure that positive history is being created. Trusting each other while working out of the bad credit process can be an effective way to dealing with a spouse that has a less than favorable credit rating.

3 thoughts on “The repercussions of marrying into bad credit

  1. My developer is trying to convince me to move to
    .net from PHP. I have always disliked the idea because of
    the costs. But he’s tryiong none the less. I’ve been using WordPress on several websites for about a year and am worried about switching to another platform.
    I have heard great things about
    Is there a way I can import all my wordpress posts into it?
    Any help would be greatly appreciated!

  2. Your viewpoint on this issue is very interesting and I hope to see more articles on your website about it. I have bookmarked so I can stay up to date on any future posts like this matter. Awesome! So creative. I like to plan coffee nights at Starbucks (we have one of those new BIG ones)… and our local Round Table Pizza parlor has a room in the back that they let us use for free with lots of table space, and we all bring craft projects and eat and drink and be merry.

Leave a Reply

Your email address will not be published. Required fields are marked *