Is Your Credit Score Really Ruining Your Love Life?


Do you know that having a good credit standing – or a bad one – can make or break your relationship?

There are many disadvantages to having a bad credit. One of them is that you will have difficulty in loaning for a car or a house. Another is that you will have a hard time looking for a job since employers will have to look at your credit history. There is, of course, your credibility and reputation at stake – lenders won’t be able to trust you anymore with loans or finances in general. But do you know that credit scores ruin life – your love life, to be exact? Yes, having a bad credit score can make you break your relationship and the only thing you need to work on is how to fix this.

Here are just some of the things you need to do when fixing your credit score and at the same time, fixing your relationship.

Your Marriage and Your Credit Score

There is great news under the Equal Credit Opportunity Act (ECOA). Your marriage can’t be a factor when looking at your credit rating system. In fact these creditors such as banks or those who lend money can’t even ask you whether you are married or not, divorced or still single. But in those instances where creditors are required to ask about the marital status of an individual, they can use any one of the following: married or unmarried or separated. The bottom line is that your personal credit history doesn’t affect whether you are married or not. When you do apply for a joint account with your partner, your individual credit rating can influence the decision of your financial institution.

Divorce and the Credit Score

When it comes to divorce and your credit score, the process becomes more complicated. You have to be careful, too as this credit score ruin life – but only to some extent. Just remember that when you are divorced, you still need to pay any financial obligation to your spouse. Here are some of the things that you should work out in order not to hurt your credit score in the process.

• Don’t be too angry with your spouse. You need to be civil to him or to her when it comes to discussing financial obligations and other matters. This is so that you won’t aggravate him or her, make your other partner angry and therefore, your credit score ruins life – literally.

• Decide which debt is yours and which one is hers. You need to contact your creditor and see which debt should fall under his or her name. Of course both of you need to be honest so as not to create any misunderstandings.

• When it comes to having joint bills, stay on the path. Make sure that each debt is paid for by the person concerned because if you do not, then both of you could suffer the penalty.

• When you have joint accounts, you need to close it and open one in your name. You can also ask your bank to remove the name of your spouse so this will function as a single account.

• If, however, your better half incurs a lot of debts during the divorce process, the only liable thing to do is to cancel all account under his or her name. Inform all those banks – through a formal letter- that you are not responsible for all of those debts. Of course your bank can still collect from you but doing this action shows how responsible you are in taking care of your books. You can also check the 3 bureau credit reports and see whether you have a good credit standing or not, just to make sure that everything falls into place.

• When your divorce has already been approved and that everything is in its final stages, close all joint accounts and take out consolidation loans when it comes to paying your joint bills. This will not only establish and reestablish your credit history but it shows that you have agreed and is responsible to the debts you need to pay.

The bottom line is, you need to marry someone not just for the money but you need to marry someone because you love him or her. This is simple as that.

Joy Mali is an active blogger who shares extremely interesting finance management tips over the web that encourages people to manage their personal finances, check credit reports regularly and review how credit score changes in different scenarios.