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Protect Your Good Credit After Marriage

Protect Your Good Credit After Marriage

The relationship between credit and income is very strong in our society, and if you have a bad credit history, you will have access to less credit going forward.

It is, therefore, vital that you learn and acquire as much knowledge about credit as you can. As the old saying goes, knowledge is power, and when it comes to credit, this knowledge is invaluable.

Here is how you can protect your good credit after you get married:

Keep your credit separate

 

If you are single with good credit, you may not want to add your new spouse to all your credit accounts.

This is primarily because, if he or she abuses your credit and you wind up getting divorced later on, your will be left with ruined credit, after you have spent many years building it up.

In most cases, there is far more for you to lose by joining your credit than there is to gain. For this reason, it is highly advisable to keep your credit accounts separate.

Of course, certain credit accounts will have to be entered into jointly. For example, when you buy a house, which can often require both of your incomes in order to be approved. However, credit card accounts should never be held jointly, as there is more potential for abuse.

Build strong individual credit reports

 

Newlyweds have a lot more to gain by building healthy individual credit reports, as opposed to consolidating all accounts and building one joint credit profile.

On the other hand, banks and credit card providers prefer couples who join all their credit accounts. The reason being, when you join your credit, the lender then has only one credit liability instead of two. But, if you have difficulty repaying your credit, they can pursue two people for one account, irrespective of who was financially liable.

But, when couples get married and each spouse builds his or her own credit report, they are better able to survive financial difficulties. This is because they have two boats in the water and when one begins to go down, they can jump to the other.

For example, if your spouse has credit difficulties for whatever reason, or is forced to file bankruptcy, you and your spouse will have your credit in reserve to get by on.

Furthermore, if you do happen to get divorced later on, you will each have your own good credit to help you transition to an independent life. This can make a huge difference to your financial future in the short-term and long-term.

Conclusion

 

While some may denounce taking action to protect your individual credit after you get married as being very pessimistic, it is no different than purchasing insurance. You purchase insurance not because you are sure that you will need it, but in case you need it.

Likewise, when it comes to protecting your credit after you are married, you have to plan for unfortunate events that may possibly take place in the future.

Study and apply this advice to your credit management regime and you may be able to avoid some of the financial issues that cause marriages to fail in the first place, while protecting your good credit at the same time.

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