Love cares not about credit rating or how good one is at managing their finances, but there will come a point when these more pragmatic issues will become, well, issues. So is there anything to be done if you find yourself in a relationship with someone with really bad credit? What should you expect and what sorts of ways can you mitigate the negative aspects of this predicament? Freedom Debt Relief explores these questions below.
While no amount of love will improve your spouse’s credit profile, Freedom Debt Relief offers a few tips and tricks that can help reduce any problems that this could have on your finances. There are ways that you can help your partner improve their profile, all the while not letting the score dramatically undermine your financial goals in the process.
Check Your Credit Report Regularly
One of the first things that Freedom Debt Relief suggests is to regularly look into your credit report. This is true regardless of your credit profile. A lot of people with bad credit never bother to look at their credit report as it feels rather pointless, but it isn’t. The thing is, mistakes can be made, errors happen, and all of these things can further drag down a credit score. If you spot any mistakes, you can take efforts to remove these errors in a timely fashion.
Keep Your Credit Utilization Rate Down
Something that Freedom Debt Relief points out is that, say you have a credit card, when you use more than about 30% of the available credit line, it starts to look “bad” on your financial record. What is better is to maintain a credit usage of less than 30%. You can do this by ensuring that you always make your monthly payments on time, as interest causes these numbers to really add up.
Start Building Your Spouse’s Credit
A lot of times, people who have bad credit don’t try to apply for credit and they don’t take advantage of credit because they are charged higher interest rates and the like. The problem that Freedom Debt Relief notes is that you have to have credit in order to build credit. This doesn’t mean that your spouse has to take out huge loans under bad terms, but that they should have at least some small line of credit that they can use and regularly pay off, as this will help them to build and repair their credit profile over time.
All of these tips are good ideas for people, whether they have bad credit or good credit. But for those who have a spouse with bad credit, there are ways that you can help them get their credit under control and to begin to rebuild their profile. By regularly checking credit reports to ensure they are error-free, you reduce the likelihood that your profile is negatively effected by something that is out of your control.