According to one of our surveys, the most common hidden debt among couples is credit card debt. If you are among the 36% of Canadians who rarely or never say money to their spouse, it may be time to have this conversation to make sure you are not adversely affecting your financial health.
Your financial behavior and the behavior of everyone with whom you share credit is very important since it is one of the ways in which your credit score is assessed. Your credit score is a judgment on your financial health based on your credit behavior. It reveals the risk you represent for lenders. If you or your spouse with whom you share credit miss payments or pay your bills late, this could have an effect on each of your credit scores and scores.
How is your credit affected?
Any debts you share with another person can affect your credit score and personal credit score. This means that if you have co-signed a loan, a mortgage, or have both your names on a credit card, the other person’s behavior can affect your financial health. And the opposite is also true. If you share a credit card with a spouse and miss a payment, your credit score and credit score and that of your spouse may be affected. Therefore, you may have difficulty obtaining loan approval in the future or you may not be getting the best interest rate due to your credit history.
The same goes for an ex-spouse with whom you are no longer in a relationship, but still with a shared credit. If you are separated or divorced but still have joint debts, such as a mortgage, car loan, or credit card, their behavior continues to affect your credit score as long as you are a co-signer on a loan.
Manage your credit to get a good score
Anytime you miss a payment due date on an invoice or credit card payment, it has a negative effect on your credit score. If you depend on a spouse to make payments on time or in full on a joint debt and they are not made, it can affect your score more than you think, even if it is not you who is responsible. missed the payment.
Also, did you know that when you use more than 30% of your credit limit, lenders recognize you as a higher risk and your credit score is affected. Try to keep your credit usage below 30%, that is, if you have a line of credit of $ 10,000, try not to use more than $ 3,000 when you can in order to maintain a good credit score.
This article sets the record straight by explaining 5 credit myths that can help you better understand and manage your credit score and score.
So can a spouse affect my credit score? The answer is yes. If you are a co-signer on a loan or credit card, everyone’s behavior could affect each of your credit scores. Talk to your spouse to make sure you are in good financial health.