Credit Repair for Couples

Credit Repair for Couples

If you’re in a serious relationship or are married, chances are you have merged almost everything together. Naturally, many new newlyweds assume their credit scores will be legally combined as well. But this is not true. Even if you’re married, you can’t combine your individual credit history with your spouse’s. Credit repair for couples can be tricky, since there are two credit scores to take into account.

How Credit Scores for Couples Actually Works

Even though your credit scores do not merge, you would be negatively impacted by your significant other’s bad credit score. For instance, if you and your spouse are considering purchasing a house together, both of your credit scores impact the loan offer you’ll receive. So even if you have perfect credit, if your spouse has poor credit, you won’t be able to get the best interest rate on your loan. In fact, if one score is really low, you might not qualify for any joint financing at all.

This is why it can be difficult to build a financial future together. It can be even more challenging when you have a very different credit history from your significant other.

Steps to Repair Credit Together

Thankfully, there are ways that you can work with your significant other or spouse to repair your credit together.

  1. Start by pulling both of your credit reports from all three reporting agencies. Go through all three credit reports thoroughly, item by item, to make note of anything that is a negative listing. If there is a negative listing, send a letter to the credit bureau requesting validation for this debt. This is a process that can take months, but if you do it, it will be well worth it. Even a single negative removal may significantly impact your credit score
  2. Pay off any debt that you and your significant other have. This can be a touchy subject to broach. In some cases, one person in the relationship might have a significantly higher debt than the other. Working to pay off any debt that either party has can be beneficial for both of you. This is especially true if you are able to collectively pay off any debt that hasn’t been sent to collections.
  3. Once you have removed any negative listings from your credit report that you can, and paid off any of your recent debt, consider cosigning a credit card with your partner. If you do this and you keep the card in good standing (e.g. by paying off each of your monthly balances on time), your credit scores may improve.
  4. Naturally, you want to make a budget together and stick with it if you haven’t already. Record every penny. Get a good sense of where your money is being spent so that you can allocate funds as necessary.

Getting Help from the Best Credit Repair Companies

There are companies out there that can help you repair your credit. They’ll go through all of the credit repair steps for a small fee. These companies can provide a great deal of benefit for couples. They provide an even bigger benefit if you sign up together because in most cases you get a great discount for signing up as a couple. There are a handful of reputable credit repair companies that offer couple programs, which you and your spouse might want to use.

  1. Ovation Credit offers couples a 20% discount for both parties signing up.
  2. Sky Blue Credit gives you a couples discount upwards of 16% off the monthly plan, charging you only $99 per month instead of the normal $118 per person.
  3. Lexington Law offers 50% off the first work fee for you and your spouse when you sign up together.
  4. The Credit People give you $20 off when you sign up with a spouse.
  5. CreditRepair.com lets you sign up for just $50 each, and with that you can sign up family or friends too.
Married couple discussing credit repair companies

How Marriage Affects Your Credit Score

How Marriage Affects Your Credit Score

Marriage is a wonderful thing, and yet in one instance it can bring with it a serious problem: credit. Marriage affects your credit score, but it’s often not an issue that newlyweds think about.

How Both Scores Are Taken Into Consideration

When you get married, your credit scores do not combine. However, your spouse’s credit score impacts your ability to get a good interest rate. For instance, if you have very poor credit and your spouse has very good credit, both of these scores are considered when you apply for a joint loan. In the worst case, you might not get a loan at all. In slightly better cases you get the loan but with extremely high interest rate.

Financial Liability

Another major problem is the fact that you can become financially liable if you choose to combine assets. Consider, for example that you have worked tirelessly over the past few years to cultivate a great credit score. You have finally reached the 800 mark, but your spouse has done the exact opposite. If you fail to discuss personal assets and debts before you get married, it can land you in a tight spot. You don’t want to wait until after the honeymoon is over to learn that your spouse has three different accounts sent to collections and a myriad of bills that are not regularly paid on time.

Be Honest

The main learning is that you should have honest conversations. Then, carefully choose whether or not to put both of your names on things. You might think to put both of your names on a car will make it easier to pay the regular bills. But in so doing so, you might not realize that now your credit will be negatively impacted. Doing so without realizing this ahead of time may subsequently drop your credit score as a result.

What’s more, couples who are brand-new to marriage and might not necessarily talk about every aspect of monthly bills might set aside money for a specific mortgage or electricity bill but then one of the parties forgets and doesn’t pay on time. Even small things like paying a bill a few days late can negatively impact your scores.

How Credit Repair Can Help

There are other options if you and your spouse need help. There are organizations that help you to repair your credit as a married couple.

Incorrect negative marks on your credit history and many other things can all be rectified within a few months to help you improve your credit score. This is wonderful news for new couples, especially those who are looking to purchase their first home or maybe their first car together. By taking a few months to work with a professional service and improving both scores, you can set yourselves up for better interest rates when you go in to make a decision.

Credit Repair Companies That Work With Couples

These companies offer great programs for couples who want to work together to repair their credit. The top five companies that you might want to consider include the following:

  1. Ovation Credit offers couples a 20% discount for both parties signing up.
  2. Sky Blue Credit gives you a couples discount upwards of 16% off the monthly plan, charging you only $99 per month instead of the normal $118 per person.
  3. Lexington Law offers 50% off the first work fee for you and your spouse when you sign up together.
  4. The Credit People give you $20 off when you sign up with a spouse.
  5. CreditRepair.com lets you sign up for just $50 each, and with that you can sign up family or friends too.