Marriage is a happy time in peoples lives. It also becomes a complicated time. When you marry someone, you not only marry them, your credit status gets married also. Establishing good credit is essential after marriage. You will need credit cards, mortgage loans, car loans, and even joint bank accounts. To obtain these, you should start working on building up a great credit history so you will be able to use it when you need it.
Here are some simple tips to help you start establishing a great credit history. It is not rocket science but it does take some vigilance and responsibility. To begin working on your credit, you first must know what your standing is. The first and foremost task that you need to do is to obtain a credit report.
Getting A Free Credit Report
Regulations allow for you to request one free copy of your credit report per year. This gives you the opportunity to monitor your credit and make sure that there are no errors on your report. To get your free copy, you must contact each credit bureau directly. There are also many online sites which offer access to your credit report for free.
If monitoring your credit feels like it may take too much of your time, there are many credit monitoring services you can use. These services will help watch your credit history and help you when inaccuracies appear on your report.
When you have no credit or very little credit, it can be difficult to get financing for loans. If you find yourself in a situation like that, it is not the end of the world. It is still possible to get loans, but you may have to offer the lenders some collateral. It is suggested that using your car as collateral is a good idea to help you get started. Many lenders will accept a car as collateral to secure a loan.
If you do not have anything to offer for collateral, you can also build your credit history by applying for a secure credit card. With a secure credit card, you will have to make cash deposits which will act as your credit limit. It is like a calling card in the sense that the amount of money that you put on it is the amount of money that you can spend. The benefit of this is that the credit card acts like a normal credit source and the more you use it, the more credit history you will build. Since you can only spend what you put on it, you will be building a clean credit history.
Obtaining a mortgage loan and making your payments on time is a key point to getting better credit. Without credit, you will first have to offer a high down payment for the mortgage. This in theory shows the lender that you have the ability to save and will have the ability to repay the loan.
Getting a co-signer who has good credit is another great way to secure a loan. A co-signer becomes responsible for repaying the loan if you fail to make payments.This makes lenders feel safer if you don’t have credit to begin with because they have a guarantee on getting repaid. Every time you make your payments on time, you are bettering your credit history and making it easier for you and your loved one to obtain better loans and credit.
When you get married, your need for credit will increase. By starting out early and monitoring your credit, you can ensure that you have great credit for when you need it. Start to build your credit and in the future, you will have no problems buying that new house for you and your family.