Thursday, April 10, 2008

Ways to Help Your Spouse Build Credit

If your spouse wants to apply for a loan or obtain financing for a small business, she will need to have a strong credit score to get the best rates. If your spouse's credit score is below 600 or she has a poor credit history, there are a few ways you can help improve her score and build credit in a short period of time. Improving the credit score and managing outstanding debts effectively can increase her chances of obtaining a loan and put her in a better financial situation.

Instructions

    1

    Make a list of your spouse's outstanding debts and your own debts. This will help you conduct a personal financial analysis so you know how much debt you really need to pay down.

    2

    Outline which credit cards have the highest interest rates. Cards with high interest rates should be paid down first; outlining all of these cards will give you an accurate idea of how much your spouse needs to start paying off right away.

    3

    Delete any collection accounts on record. Any collection accounts that have been paid off might still be listed on your spouse's credit report. Ask for a letter that confirms the cancellation from the collection agency and make sure this is sent to the credit bureau for clearance.

    4

    Apply for prepaid credit cards. Prepaid credit cards are a valuable resource for building new credit, and your spouse can start using these cards to improve his credit score.

    5

    Consider adding your spouse as a joint accountholder on your own credit card. Any credit card accounts that you have kept in good standing will be an asset to your spouse's credit score if he becomes a joint accountholder. Adding your spouse to two to three credit cards can improve his overall score.

    6

    Sign household bills over to your spouse. Make your spouse the primary accountholder on any household bills such as telephone or utilities accounts. Making these payments on time can help your spouse improve her credit standing.

    7

    Work out a monthly budget. If your goal is to start paying down credit cards together, pull together all of your income sources and create an expense chart to determine your monthly budget. This can ensure all bills are paid on time and you are not damaging your credit because of missed payments.

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