How to Help Your Spouse Rebuild Credit

You can help your spouse rebuild a credit score through specific joint debts. However, you should be conscious along the way of the fact that your spouse must take individual loans in order to truly build up a good credit report. Look for opportunities to take on debts together and separately so you can both have high credit scores in the future.

Share Large Loans

Large loans, like mortgages, should include both of your names. This will help your spouse build credit, and it will also help you secure higher limits if you each have an income. The lender will use your total income to determine your limits. If your spouse's credit is low initially, this will not matter if he or she makes less than you do. The lender will use the credit score of the higher earner to determine your terms.

Secure Individual Loans

Having joint loans is not enough to build credit. Ensure that your spouse is actively taking individual loans when the opportunity is correct. For example, ensure that your spouse has his or her own credit card, not just a version of your card with his or her name on it. If you are considering financing a small electronic device for your home, this is a good opportunity to allow your spouse to take on the debt alone.

Portion off Debts

If you have a certain degree of debts when you are married, balance these debts between your two credit scores. Neither individual should carry the bulk of debts. However, if your spouse has bad credit and is working to repay costly loans, consider taking on the debts in your name. This will save you money because you are likely to get better financing terms. It will also help immediately to rebuild your spouse's credit.

Did you find this article helpful?