Maximizing your borrowing options could include using your spouse's income and credit rating. If you need your spouse's income to obtain a credit approval, your spouse should have a history of paying creditors satisfactorily. However, if your spouse has derogatory credit, you may opt to apply on your own. Generally, your spouse's credit should not impact your borrowing abilities, if he is not on the loan. If you have joint accounts that reflect negative credit ratings, the accounts could have an adverse impact on your borrowing capacity.
Credit Ratings
Credit ratings are generally screened before a lender issues a loan. A consumer's credit rating is primarily based on her payment experiences with creditors. Typically, creditors may use your Social Security number, as well as other identifying details, such as your name, date of birth and home address, to report your credit experiences to various credit bureaus.
Favorable Credit
Favorable credit often consists of timely bill payments and prudent credit management that typically leads to an above-average credit rating and credit score. Borrowers with favorable credit might have options to comparison-shop for preferred lending terms.
Unsatisfactory Credit
Unsatisfactory credit could stem from late bill payments or a high usage ratio of your available credit. Borrowers who seek financing with an unsatisfactory credit rating may be denied. If a borrower gains an approval while having unsatisfactory credit, the financing terms could exceed the costs that are offered to borrowers with preferred credit.
Joint Accounts
Joint accounts are displayed on a credit report to reflect the credit experiences of multiple account users. For instance, if you applied for a credit card and your spouse was listed on the application as a co-borrower, activity for respective accounts could appear on your individual credit reports. Your credit report could also reflect a joint account for an authorized user, such as your son, who you've issued a credit card and permission to use your account.
Considerations
A spouse's credit rating could have a positive impact on your borrowing ability, if your spouse has a favorable credit rating. However, a spouse with unsatisfactory credit could reduce your capacity to obtain credit. Generally, a spouse with favorable credit has an opportunity to include income that might enhance your ability to secure a loan approval. Visiting the annualcreditreport.com website could enable you and your spouse to view your credit reports online.
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