Tag Archives: accounts
Relationships With Credit Are You And Your Partner Ready For It?
As you found the love of your life at last, one of the most acute problems that your couple faces is how to manage the both partners’ finances. It is usually no easy for the partners to determine how they will spend together and how they will own the property in possession. There are some guidelines to help couples organize their spendings according to their choice and lifestyle and the way they make their relationship.
– You and your partner are free to share or not share your property and earnings. There are a number of models to organize the financial aspect of your relationship:
– You spend as a married couple: that is you have joint accounts and are both reliable for payments, plus both of you are involved in the ownership. You also make credit card applications in both names, building a joint credit history.
– Partnership for spending: you can get joint accounts for certain expenditures, such as rent or household payments, on other needs each of you spend on your own.
– Keeping independence-model: each partner pays for himself and you manage to pay for mutual needs (household, food, holidays) in turn or making equal contributions.
When living together, young people can’t usually do without big purchases. A TV, a sofa or a washing machine sooner or later the couple gets in need of such sort of things. No wonder, a loan or a credit card plays the main part in this case. It goes without saying you should be careful and wise to play it fair and safe. Remember, you should be 100% sure of your partner before putting your name on an application or agreement.
These are some possible threats that each of you should be aware of when some of you decides to apply to the bank.
– Be careful becoming a co-signer. If your partner fails to pay off the debt or you fall apart, you will have to pay off the balance, as a second responsible person. Besides, it is fraught with damage to your credit score.
– Joint accounts for credit cards or loans seem to be a good option, but not in cases when the relationship is unstable and seems to be not to last long. Though in this way you can build your credit rating together and both of you are responsible for payments, there are pitfalls to beware. If some of you fail to pay or exceed the limit, the other’s credit history can be damaged and he or she will have to pay the balance and all the penalty fees.
– If one of the partners has bad credit, it is required that it should be under repair, in order to prevent future problems with approvals.
– Before taking the decision to apply for mortgage or a car loan, which are long term and money consuming types of lending, you should know for sure you can trust your partner. Mistakes in this matter can cause serious troubles like bankruptcy.
Love has nothing to do with money. So if you want to be protected, it doesn’t mean you do not love your partner. Create your relationship and do not forget about future and financial security.
Tips on How to Rebuild Credit after Bankruptcy
Many consumers today are very conscious about their credit scores. This is because they know that their respective credit ratings directly determine the terms and rates of interest that will be imposed on the financing deals that they might be taking in the future.
These consumers are also well aware of the fact that a bad credit report can significantly reduce their chances of being granted low interest credit programs. They know that having bad credit marks such as tax liens, foreclosure, court judgments and of course bankruptcy can cause lenders to shy away from extending them the financing deals they need.
Let us consider the effect of bankruptcy. A bankruptcy record is usually retained on your credit file for a period of seven to ten years. This means that you will have a very difficult time searching for lenders, willing to provide you credit lines, for a very long time. You will have to wait for a minimum of seven years before your bad credit report will be dropped and before you can receive again offers for low interest credit accounts.
Still, this does not mean that you have to wait that long before you start repairing your credit history. It is possible to gradually rebuild your credit reputation even after your debts have been discharged under bankruptcy. But how can you do this? You will find the answer to this question in the succeeding paragraphs of this article.
Three Tips on Rebuilding Credit History After Bankruptcy
Even if you cannot eliminate bankruptcy from your credit records, you can do things that will help improve your credit score. Below, we have listed three tips that you can employ to do so.
1. Regularly check your credit report. Always obtain a copy of your credit file from the three credit reporting agencies -Experian, Equifax and TransUnion. You can do this by ordering your free annual credit report from Annualcreditreport.com.
Once you have received your credit report, you must carefully check the entries reflected on it. Scrutinize your personal information, as well as your existing credit accounts. In case you find an error or misprint, immediately file a dispute letter with any of the three credit reporting firms. This way, you can prompt them to investigate your credit records and verify your claim. Should they find your claim valid, they will issue you an updated and more reliable credit file.
2. Seek professional assistance. There are many non-profit organizations that provide free credit repair services. By enrolling in these programs you can certainly learn effective tips that you can use to gradually regain your credit reputation. Not only that. Credit repair guides also provide advice on how you can manage your finances as well as your credit accounts responsibly. This way, they can assist you to avoid falling into new debt traps and encountering bigger financial problems in the future.
3. Make a conscious effort to avoid debts. The two tips we have listed above will not work unless you resolve to change your spending habits. So, we encourage you to avoid incurring new debts. Apply the money-management tips that you have learned from your free credit repair sessions. This way, you can succeed in regaining your credit worthiness and in recovering your financial health.
Follow these three tips and for sure you can successfully rebuild credit even after you have filed for bankruptcy.