How to Restore Credit That Your Wife Ruined

When your credit history is ruined, it may not always be your fault. If you share a joint credit card account with your spouse--one in which multiple cards are issued--the effects of the account are felt by both partners. If your partner runs up a large debt and misses a payment, the credit card companies will knock down both of your scores. However, in the wake of this disaster, there are a number of ways that individuals can recover.

Instructions

1

Review your credit report for errors. The first step in repairing credit is to make sure that the information contained in your credit report--the basis for your credit score--is accurate. Obtain your credit report once annually for free, which covers the three main crediting agencies Equifax, Experian and TransUnion, at the Annual Credit Report website (see Resources). Identify all accounts listed in the report and report any errors to both the creditor and crediting reporting agency that may pull down your score.

2

Report any fraudulent transactions to authorities. Legally, only authorized users of a credit card are allowed to use the card to make transactions on the account. Although spouses may frequently use each other's cards, if one spouse ran up a debt on another's card without his permission, this can constitute fraud. If your wife used your card without your permission, contact the card company and your state attorney general's office.

3

Pay down existing debt. One of the main factors weighing down a credit score is the amount of outstanding debt that the person currently has out on the account. This is particularly true of debt for which the payments are late. To raise your score, pay down as much outstanding debt as remains on your account. If possible, pay in full: when a creditor writes off debt, it lowers your score.

4

Even out your balances. According to the Fair Isaac Corporation, the investors of the formula for scoring credit, the closer a line of credit is to being maxed out, the lower this will push the person's score. As you pay down your debt, if you have several credit cards and one of them is close to the limit, shift the balance to another card. This will result in a gain of several points.

5

Take out new credit--in your own name. The only true cure for a damaged credit history is time, and timely payments. To held balance out the blotches on your record, take out new lines of credit and pay down the debt on time and in full. To prevent your wife from committing the same error, ensure the card is issued only in your name and guard it closely.