Posts Tagged ‘couples and credit scores’

No Divorcing Your Credit Scores

January 18, 2012, by FreeScore


divorcing credit scoresIn many divorces, assets are split down the middle. After that, each person moves on and begins anew. Unfortunately, some couples are brought back together by unforeseen circumstances. Rather than a chance encounter at the grocery store, sometimes all it takes is a bold move by a credit card company to get people talking again.

A recent article on The Consumerist details the story of one divorced couple reunited by a credit card company. When it was time for one reader to pay her credit card bill, she simply paid the $500+ bill and went on about her business. It wasn’t until she received an angry call from her ex that she found out Chase had taken the money from his checking account instead of hers. The couple had never shared an account before, but they did use the same credit union and still share a last name. Upon logging into the Chase website, the reader discovered her ex-husband’s account number as the default payment option. She has since repaid her ex for the bill and vowed to monitor her Chase account and checking account more frequently. As the reader points out, the situation could have easily been reversed, with her checking account being debited for someone else’s credit card payment.

This story did not have any far-reaching consequences, but what if that extra $500+ dollars had caused the reader’s ex-husband to miss a credit card payment of his own? His credit scores would have taken a serious hit. And what if he had been trying to get a loan for a house or a car? He could have been denied because of a black mark on his credit reports.

Whatever your marital status, you can avoid the “what-ifs” by signing up for the Power of 3 from FreeScore. You’ll receive access to your three credit scores and reports, as well as 24/7 credit monitoring and automatic alerts. Plus, if someone tries to steal your identity, FreeScore will put you in touch with licensed investigators to resolve the situation. Arm yourself with knowledge by keeping tabs on your finances and credit information and avoid being caught off-guard by unexpected charges.


wedding and creditWhew! We’ve made it through May, one of the busiest months of the year for weddings. Now that the newlyweds are starting to settle into matrimonial bliss, and the soon-to-be-wed are getting their finances in order, it may be a good time to talk about credit scores.

When you get married, all of those insurance policies you’ve held for years – car, health, life, auto, etc. – suddenly need to be combined with another person’s. While you’re shopping around for rates, you should also be aware that you and your spouse’s credit scores will be taken into account when deciding the premium. Since many insurers believe that poorly managed finances will equal more claims filed, your insurance premium is likely to be higher the lower your credit scores are. For example, it’s estimated that consumers with bad credit pay 20 to 50 percent more in car insurance than those with good credit scores.  Rate hikes like that can make a big difference when you’re trying to set a budget and build your future as a married couple.

When you are getting ready to combine insurance policies, don’t let your credit scores catch you off guard. At FreeScore.com, you’ll gain the advantage of the Power of 3: three credit scores from the major credit bureaus (TransUnion, Experian and Equifax), 24/7 credit monitoring that tracks activity like new accounts opened in your name, and 3-bureau credit alerts that provide early warning if something changes in your credit profile. With these tools, you can stay on top of your credit scores and be ready to negotiate the lowest insurance premiums possible.

Did you run into any surprises when combining insurance policies with your spouse?


credit and stay-at-home-parentsMany couples decide to open up joint accounts and combine finances after tying the knot and having children. While this may be convenient, it’s still important for each individual to continue to build his or her credit score, even if one partner doesn’t work, according to CBS MoneyWatch.

Building a strong credit score could benefit the couple when they decide to buy a home or a car, especially if one partner has poor credit. Once a joint application is filed, both partners may end up paying more for a loan, CBS MoneyWatch reports. But applying for a loan using the credit report of the financially stronger partner can lower the interest rate.

That being said, applying for a separate credit card may also help one spouse boost his or her credit score and maintain, or build, a stronger credit history, the website said.

Additionally, as much as no one wants to think about it, divorce or death are both possibilities. If the spouse with the better credit score leaves or passes away, the other will be forced to rely on his or her own score to secure loans or other financing options.


couples and credit scoresA poor credit score may prevent some consumers from getting the most favorable interest rates on their loans.

But it shouldn’t stop them from getting married, according to a recent column in South Carolina newspaper The Herald. Certified financial counselor Jennifer Panther suggested ways for couples to get past one partner’s low credit score.

They’re often able to take out a loan under one partner’s name. The one with the stronger credit history will usually receive more favorable interest rates, allowing him or her to reduce the overall cost of the loan. However, this may not be an option on larger investments, like a mortgage.

“It might take the combination of both incomes to justify a financial institution lending the funds for the purchase,” Panther wrote.

She suggested that couples improve their overall credit standing before committing to a sizable loan. That way, they’ll be able to secure the lowest interest rates and most affordable overall payments.

Payment history accounts for about 35 percent of a consumer’s credit score, according to FICO. Other factors include new credit, length of credit history, types of credit and amounts owed