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Personal Credit
Taking on debt never sounds like a good idea, but it's actually
a good thing when it helps to establish your credit history.
When you go to apply for a home, auto, or personal loan, the
first thing the lender's going to check is your credit report.
In fact, maintaining your own credit history even after you
marry can benefit both spouses--especially if one spouse has
a better credit history than the other. In some cases, a woman
can qualify for a mortgage based on her own credit, even if
her husband's credit is overextended due to student loans
or starting a business.
The following tips are designed to help you establish good
personal credit in order to apply for a loan:
- You should establish your own credit history before getting
married.
- A local bank or department store may approve your credit
application even if you don't meet the more stringent requirements
of major credit cards.
- Even after you're married, hang onto some of your individual
credit accounts, such as credit cards or a car loan.
- If you have had credit before under a different name or
location, ensure your local credit bureaus have complete
and accurate information about you in a file under your
current name.
- If you share accounts with your spouse, ensure that creditors
are reporting these accounts to credit bureaus under both
names.
- If you were married or divorced recently and changed your
name, ask creditors to change your name on your accounts.
- List your best credit accounts as references on credit
applications, including accounts you share with your spouse
or former spouse.
- Do not apply for too many credit lines at one time.
- If your credit application is denied, you are entitled
to request a free copy of your credit report as well an
explanation of the specific information in the report that
led to the denial.
If you are thinking about taking out a loan, use our tools
to help you answer the following key questions: How
Large a Line of Credit Can I Obtain Tool; What
Will It Take to Pay Off My Line of Credit Tool; and Should
I Consolidate Debts Tool.
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