If your spouse has the worse credit score than you do then it is not going to lower your credit score in anyway. Your credit score is going to be based on information present on your credit file whereas your spouse’s credit score is based on information present on his or her credit file. Since credit reports are kept individually and secretary for each person the credit scores also remain individual. The only time that your spouse’s bad credit score may affect you is when you try to apply for a loan jointly. Several lenders require that both spouses take some cans of loans jointly such as a mortgage loan. Due to the poor credit score off your spouse you may get higher interest rates or your credit application may be denied completely as lenders have become more stringent and strict with their qualification criteria.
Every consumer in the United States of America has his own credit report. The credit report uses very saddened by such as name and address and social security number to make sure that every information connected to the individual is reported to the credit bureau. Getting married is not going to have an effect on your credit report. Your spouse’s credit history is not going to affect yours and not is the information present on your spouse’s credit file going to find its way on your credit file. However if you open any accounts that jointly after marriage can both these accounts will be reported on the credit file of both husband and wife. This is regardless to who uses the account and who pays the bill. Similarly if the spouse adds another as an authorized user on an account on this account will be reported on the credit file of both the people. The same holds true when one spouse co-signed for a credit application for the other.
There are some common myths that are related to marriage. These myths make people unsure of what is going to happen to their credit reports and scores when they get married. Here are some of the common marriage myths related to credit.
Our credit files will be merged
Credit reports and credit scores continue to be individual and independent even after marriage. Credit files are connected to each individual through their social security numbers. Getting married is not going to join your credit reports.
Marriage will lower credit score
Even if you are marrying someone with a lower credit rating then yours, your credit score will not get affected. Expenses from the wedding and honeymoon done on credit may affect your credit rating but not the wedding itself.
Credit History is erased with Change in the Last Name
This is also one of the common myths. Any change in name, address when reported to the credit bureau by a lender is added to the existing information. A credit report uses several identifiers to connect a credit history to an individual. Name is just one of them. The social security number is an important identifier used. A change in the last name will be recorded in your credit report along with your maiden name. No change in the transaction history will occur. You will continue to have the same credit report.
My Spouse’s poor credit Will Hurt My Score
This is not true. Your individual scores will remain the same. You may feel the effect of a spouse’s poor credit score when you apply a loan jointly. Due to the poor credit score of your spouse, you may get denied the loan or get higher interest rates on credit cards and mortgages.
You automatically become the Join account Holder on the Spouse’s Accounts
Marriage will not make you a joint account holder on your spouse’s accounts. In order to make the accounts joint you will have to file the necessary paper work with the bank or the creditor and your spouse will have to add you as a joint account holder.
Marriage does not have to affect the credit score us and. In case you are getting married and wondering how your marriage is going to affect your responses credit score then stopped to consider the following few things.
What Happens to Your Credit When You Get Married
Nothing is going to happen to your credit rating when you exchanged wedding vows. All consumers in the United States of America have an individual credit report which does not get much. Your spouse’s credit history will not appear on your credit report or will yours appear on theirs because you two got married. So any negative information that is present on your spouse’s credit report will not be combined with yours because of marriage. If your wife chooses to change her name of the marriage the new name will be reflected in her credit report in addition to the original maiden name. Only the name will get updated and no information on your credit file will be changed. A credit file usual is several identifiers such as the social security number in order to be associated with the right person. This is why a simple change in the name or address does not change the information on the credit file and it will continue to contain the same history as before marriage and under her maiden name. Your credit scores also will not drop could increase simply the basis of who you married and there bad or good credit history. Their credit scores will be calculated on the basis of information present in their own individual credit report.
When does your spouse’s Credit Affect Yours
The effect of a spouse’s credit history can be felt when you apply for an account jointly. This happens in every scenario of two people applying for a joint account. The credit history of both the people is checked and the lender makes a decision based on the information present on both reports. If your spouse has bad credit history then it is a possibility that you may be denied the credit or a higher rate of interest may be charged. The newly opened the account will be reported on the credit file of both the people and any discrepancy that arises on the account will be reported on the credit report of both the people. As any other joint account with being any two people both spouses are equally responsible for the joint credit account.
When Spouse Has Bad Credit
As mentioned before better spouse has bad credit then it will not affect you to the time that you need to apply for credit jointly. Certain major loans such as a mortgage loan require a couple to apply for the loan as joint account holders. If your spouse is a bad credit history then this may stand in the way of getting the loan or getting the best interest rate on the loan. When a spouse has bad credit history you may want to consider how to handle credit-based applications. Will the spouse with the better credit make all the applications to get better rates are very jointly apply and accept higher rates to improve the other spouse’s credit score.
The right of a collection agency to collect a debt from an individual is only limited by the statue of limitation. The statue of limitation states as to how long after the delinquency date can they still go after the debtor to recover the money. Sometimes people get surprised when an ex-spouses debt comes up in the form of a collection of account several years later. The reason for this mostly is the misunderstanding of a divorce decree. Sometimes people misunderstand that is a divorce decree handed the responsibility for a particular loan or a credit account to the other spouse, they themselves have been absolved of all responsibility.
Unfortunately this is not the case. It is the lender that has the power to make the absolute decision whether or not to remove you from a joint account held by you and your ex-spouse. After the divorce decree you have to try and get your name removed from the original contract by speaking about it with the lender. If the lender agrees to let a single person take responsibility for it then you can have your name taken of the account and will no longer be held liable for any future delinquency. However, if you have not taken the step of negotiating with the lender after the divorce decree that it is quite possible that your name is still exist on the account.
Every state as a different policy as to what the time limit is for the statue of limitation. The statue of limitation for the recovery of a debt by a collection agency may extend up to more than seven years. If there was a delinquent account during or before divorce, even though delinquent account may have vanished from your credit report after seven years a collection agency may still come and try to recover the debt from you.
If you had not negotiated with the lender to have your name removed from the concern the account as per the divorce decree then any future late payment or delinquency by your ex-spouse can also result in the creditor or a collection agency coming after you for repayment.
For this reason it is increasingly important that you make a careful note of all the accounts that are jointly held by you and your ex-spouse during before the proceedings of the divorce and have them taking care of. The best thing would be to close all the joint accounts or have them changed to a single name status before the divorce.
A divorce decree is an agreement between you, your spouse and the court as to who will take responsibility for a debt or an account. One of the most common misunderstanding is that this leads to is that people presume that they have been forgone the responsibility for the loan and it will be taken of their credit report. However, this is not the case. Whether or not you can be absolved of the responsibility of the loan altogether depends on the lender. You will need to change the contract that you had put the lender and have him agreed to remove you from the account.
Till the time that this happens the joint account will continue to be reported to both your credit histories and both of you will be responsible for making payments on it. Any late payment or delinquency that actors will impact both the credit reports and damage the credit rating of both the people. Only the lender can agree to alter the original contract so that you are no longer responsible for the debt. Something like this can come back to haunt you even years after the divorce. If you do not have the account report from a credit report by negotiating with the lender then any late payments that might occur years down the line may still affect your credit report. Worse, if the account is passed on to a collections agency in the future the collection agency might decide to come after you.
Apart from negotiating with the lender to have your name removed from it you can work together with the ex-spouse in order to pay it off and close it, if such a measure is possible. Doing this will not remove the account immediately from your credit report but will eliminate the risk of the account influencing your credit score negatively in the future.
While it is true that the divorce doesn’t directly impact the credit rating of the couple involved in most of the circumstances it does lead to complications. A divorce leads to concerns and disagreements on the financial matters. Any joint accounts that get embroiled in the divorce process are likely to suffer which will in turn affect your credit history and your credit rating. Every account that is jointly held is recorded individually in the credit history of both the people. Which means that either of you is liable and responsible to make pavement on the account. Going through a divorce does not change this. But unfortunately owing to the animosity that the two people might feel towards each other payments may be deliberately or accidentally missed. If this happens then the credit history of both the individuals will suffer. It would be ideal if two people could sit down and have a clear and calm discussion as to how to continue making payments on the joint accounts during the proceedings of the divorce. It would also be a good idea to close the joint account or to have the name of the secondary account holder removed from the account before the divorce.
Many people get confused by what a divorce decree stands for. A divorce decree is an understanding between you and your spouse and the court as to who is responsible for the accounts opened during marriage. This however doesn’t change the contract that you have with the lender. If the spouse responsible for the account under the divorce decree is unwilling to take the responsibility for the account then you can still be held liable to make the payment if the contract has not been changed by the lender. The late payment and the subsequent possible delinquency of the account will be reported on the credit report of both the spouses and will have a negative impact on the credit rating of both the individuals.
Once a missed payment or a delinquent account is reported it stays on a credit report for a period of seven years from the date that it was first reported. Worse still it can go into collections which can come back to haunt you years after the debt was undertaken and even belong after it has disappeared from your credit report.
It is a sad but true facts that a windy tape and angry spouse may try to hurt their ex-wife or husband by overextending the purchases on joint credit account with the intent of straddling the other person by a huge amount of debt and trying to wreck their credit rating. What such a person does not understand is that as long as the account is a joint account which is what it will need to be in order for the person to charge it, any unpaid amount will wreck the credit rating of both the people. But in many circumstances are calculating person also may know that the ex-spouse that they are trying to target will make the payments since he or she will not want to ruin his or her credit history.
The best way to manage financial issues is to try and keep a civil relationship during the divorce and avoid the pitfalls of a vindictive and nasty divorce. Try and close or convert to a single status as many accounts as possible before the divorce.
It is a common enough tactic used by a vindictive and irresponsible spouse to impose further hurt and inconvenience on the other partner by abusing the credit that they might have in the way of joint accounts. All too often one partner decides to inflict pain and hurt on the other by piling up credit card debt thinking that they believed their former husband or wife under the burden of debt. What such a person does not realise is that if any account is jointly held then any damage to the payment history of such an account will damage and true in the credit history of both the people listed on the account.
If you are making payments for your spouses personal accounts that did not have your name on it then you can stop. Any account that does not have your name on it as well will not affect your credit history even if it becomes delinquent. However, as far as the jointly held accounts are concerned you will need to find a way to deal with them. The best option would be if you could somehow have a calm and controlled conversation with your soon to be ex-spouse about this matter. If you could agree to keep making joint payments on account as you did before till the time that the divorce decree has been finalised then that would be the ideal situation.
If payments are missed on jointly held accounts then the creditor is in his right to come after either of you for repayment as either of you is fully and completely responsible for the debt.
Another point to understand would be what the divorce decree stands for. The divorce decree is simply an understanding between you and your ex-spouse and the court as to who will take on the responsibility for which loans and asset. Till the time that you do not negotiate with the consent lender and he agrees to change the contract so as to remove either one of you from the contract as per the divorce decree both of you will continue to be responsible for the debt.
A divorce complicates lot of things about credit. While credit bureaus take every possible precaution to ensure that only you can access your personal credit report someone like a former spouse may have enough identifying information and may know enough about your personal and financial information to be able to pose as you and gain access to credit report. It should be noted right in the beginning that accessing your credit report falsely is considered as fraud and identity kept. It gives you the option of taking legal action against your ex-spouse under the federal and state law which could result in a fine or jail time for the perpetrator.
The credit bureaus use multiple identity checks in order to ensure that only the correct person can access his credit report. If the credit report is ordered to make them it is delivered only to address that is listed on the credit history. In order to update the address on your credit report after a divorce to a new address it will either have to be reported by your lenders or you will have to update it by sending the necessary documents to the credit bureau. If the address that the request of the credit report has come from is not found on the record then the credit bureaus send request asking for additional documents to verify the address at which you will let such as a reverse licence or any other government issued for two identity card, a copy of a current utility bill etc. If the credit report has been fraudulently requested by an ex-spouse after moving to another address then he will not be able to provide these documents. However, if he still lives at the old address and you have not updated your address on the credit report it is possible that he could have the credit report sent to him.
A similar process takes place when a report is ordered online. Response will have to pass a test proved his identity and verify that the owner of the credit report. Unfortunately as mentioned earlier a divorce creates unusual circumstances where a spouse may have enough information about his ex-spouse to pass the identity check. The questions asked to verify the identity of the person online is usually the information that only the owner of the credit report should possess. But an ex-spouse may also have access to all of the personal and financial information. If he knows in detail about your accounts and payment amounts it would be possible for him to excess the report online.
A very good method of checking whether or not your ex-spouse is trying to access your credit report is to sign up for a credit monitoring service. A credit monitoring service will allow you a constant and unlimited access to your credit report which will allow you to seek who when and where is trying to access your credit report. A good credit monitoring service is offered by Experian. Details for this credit monitoring service can be found on www.Experian.com.
Changing the name will not have a negative impact on your credit report or on your credit rating. Credit bureau keeps track of all main variations that are reported to it by the lender. If you formally change your name you can modify the credit bureau by sending in the required documents and proof. If your name happens to change owing to other reasons such as taking on a husband’s name after marriage it will not affect your credit rating.
Just because two people get married it does not mean that one’s credit history automatically starts affecting the other. The only way that the credit history of one of the spouse can affect the other is if one of them and the other as a joint account holder on one of the accounts. If this account has a bad payment history then it could affect the credit rating of the joint account holder as well. Any new accounts that you open jointly will appear on both credit histories and as long as the payment histories are kept positive know damage should occur to either of your credit score.
Having a good credit history as a couple is important because certain kinds of loans such as a home loan require both the husband and the wife to take the loan jointly in most of the cases. In these situations the lender will consider both your credit histories before taking his decision to approve decline your application.