Why Both Spouses Should Each Have An Independent Credit History

Gone are the June and Ward Cleaver days from the show Leave it to Beaver.

Our generation is changing quickly. We are getting married later in life. For women, it’s around 31 and for men, it’s about 34 years of age. First time marriages now have a 67% chance in surviving divorce. Married couples head 84% of our population. Now is the time to understand how important your credit score is for your financial health.

 

Are stay-at-home spouses at a credit disadvantage?

Stay-at-home spouses, male or female, can be at a disadvantage in today’s credit society if they have not already established individual credit prior to entering into marriage. The best advice for both spouses is to build independent credit histories . This is especially important if the marriage breaks-up or a spouse dies. Your partner's credit history is now no longer relevent for you. Also, in case of an identity theft of your spouse, your personal credit rating can support your family purchases until your spouse's credit identity has been restored--only if your credit score is a good one. Obviously if you have bad credit that'll be harmful rather than helpful.

Here’s how to create  your own personal credit rating. 

• Keep some bills in each of your own names after you marry. This will allow for independent credit histories.
• If you don’t have any credit built, apply for a credit card in your name. Make payments on time to create a responsible credit history.
• Getting a personal or car loan in  your name and your spouse's is also another great idea.
• Household bills like water, cable or hydro can also start a positive paper trail in your name.

Awareness is the first step in building a future for your family and strengthening the credit score for you and your spouse. Of course, a strong credit rating comes only from paying your bills over a protracted period of time.

For more valuable information, visit www.prudentcreditrepair.ca