3 Ways to Help Your New Spouse Build Credit - NerdWallet (2024)

FAQs

3 Ways to Help Your New Spouse Build Credit - NerdWallet? ›

Open an account together

Opening a short-term joint credit account can help your spouse build and improve their credit while leaning on your financial history. A short-term account might include a vehicle loan or a personal loan with a term of three years or less.

Open an account together

Opening a short-term joint credit account can help your spouse build and improve their credit while leaning on your financial history. A short-term account might include a vehicle loan or a personal loan with a term of three years or less.

Making the right decisions when it comes to bills and repayments can help both you and your partner's credit score improve, and you could start reaping the benefits of a healthy credit score. This could include better interest rates on loans, more manageable repayment terms and access to newer lenders and their offers.

You can protect yourself from your spouse's debt by signing a prenuptial agreement before you get married and avoid taking out joint credit. It's especially important to protect equity in your home during a divorce to ensure you get your fair share, since this is likely the largest asset you have.

What is the 15/3 rule? The 15/3 rule, a trending credit card repayment method, suggests paying your credit card bill in two payments—both 15 days and 3 days before your payment due date. Proponents say it helps raise credit scores more quickly, but there's no real proof. Building credit takes time and effort.

What are the three C's in developing good credit? ›

Students classify those characteristics based on the three C's of credit (capacity, character, and collateral), assess the riskiness of lending to that individual based on these characteristics, and then decide whether or not to approve or deny the loan request.

The fastest way to get a credit score boost is to lower the amount of revolving debt (which is generally credit cards) you're carrying. The percentage of credit you use against the amount of credit you have available is called your credit utilization rate.

Pay on time, every time

One of the fastest ways to build good credit is by paying your bills on time. Creditors like to see a solid track record of responsibility. If you miss a payment – even just one – it will stay on your credit report for seven years. Make paying bills on time your priority.

The five Cs of credit are important because lenders use these factors to determine whether to approve you for a financial product. Lenders also use these five Cs—character, capacity, capital, collateral, and conditions—to set your loan rates and loan terms.

Sharing a credit card can help the partner with the lower credit score start to build their credit and raise their score. There are two options for sharing a card, Kuderna explains. You can open a joint card or have the spouse with the lower credit score become an authorized user on the other's credit card.

Becoming an authorized user on someone else's credit card can help you build credit. In order to build a good credit score, the primary account owner needs to have a good credit score and responsibly manage the account.

If your spouse has a bad credit score, it will not affect your credit score. However, when you apply for loans together, like mortgages, lenders will look at both your scores.

Marrying a person with a bad credit history won't affect your own credit record. You and your spouse will continue to have separate credit reports after you marry. However, any debts that you take on jointly will be reported on both your and your spouse's credit reports.