Ways to Help Your Spouse Build Credit
To help a spouse build credit, make all bill payments in a timely manner, guarantee a loan for the spouse and pay off the loan on time. Help a spouse build good credit, which benefits both individuals, with information from a financial manager and currency trader in this free video on finance.
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Everyone's nightmare. How do you help your wife or husband improve their credit condition when they're married. You know, that's a very difficult, political thing within a family to make that happen. Well, the easiest way is to make your payments on time, because you're credit history will build together. But, in order to make that work, that loan for sure has to show in the name of your spouse, that may have the credit issue, or lack of credit history in the past. Where in essence, one spouse guarantees the loan for another. As those payments are made, credit for making those loans on time, making payments for those loans on time, will show on your credit history, and banks then will be more willing to lend to that person at some point in the future. The other way to do it would be for somebody to guarantee a loan for a spouse alone. Now legally, in most states, both spouses would be on the hook for that loan. But none the less, from the banks point of view, if your husband or wife went out and borrowed money, and their dad or their mom or their company guaranteed that loan, well the bank would probably then be more willing to make the loan back to your spouse. Again, as long as those payments are made on time, credit history builds the right way in that persons name, and they'll be able to go back in a year or two to that bank and say look, I've done well here over the last year, I've made all of my payments on time. And they will then, credit score will be high. They'll be willing to make you loans at a lower rate of interest than you would have had in the past. I'm Roger Groh.