| |
| |
|
Credit Information |
|
|
|
Getting Married? What Are The Finance and Credit Implications?
There is a big difference between looking after your own finances while living alone, or with parents, and living with a partner. The transition can be very difficult, especially if both partners are strongly independent, or one partner is financially weak and the other strong. In fact, it is an area of a new relationship that has many pitfalls if you do not set the ground rules from the start. It is best to sit down together and quietly plan your finances, even before you get married or move in together. Then, when you do so, it is important to be open with each other, and discuss what may go wrong with the domestic finances if you do not plan correctly. That way, you can work on a plan together, and a budget, and set ground rules for a smooth financial future together. It is sensible to bring the use of credit into that discussion, as there will come a time, maybe from day one, when credit cards and other forms of credit become an issue. Agreement on all relevant credit and finance issues will reduce the risk of problems, arguments and misunderstandings later on. An early decision to make is whether to keep finances separate or not; deciding, for example, whether to have joint bank accounts or joint credit cards. The Benefits of Joint Accounts The advantages of consolidating funds into one current account include: 1. Easier record keeping. 2. Should you apply for a loan at any time, there will be less paperwork. 3. Working closely together on the running of the account may help to solidify the relationship and build trust. It gives an opportunity for both of you to bring out your best co-operative nature. There is one drawback, though. With two people actively using the account, it is not so easy for you to keep track of the account transactions and balances, especially if you are both using the account a lot. This can be overcome by discussing openly all expenditure the day it happens. The Benefits of Separate Accounts Keeping separate accounts will allow each person in the relationship more freedom: each will not need to check with their partner over every purchase. In addition, having separate accounts may create fewer complications in the relationship. It will allow them to maintain a sense of independence, and this can be very important to some relationships. One negative to a joint finance arrangement is that it can seem unfair. If one partner earns £40,000 per year, and the other only £25,000, the person with the lower salary may feel there is a lack of trust! If you do decide to have joint bank accounts checking or savings accounts, then you will need to find a system for paying household bills and handling other joint finances together. One option that works well, and that I use, is to have one joint bank account into which you both pay each month for the house expenses. This can work very well, especially if you sit down together and agree the budget first, and what proportion will be funded by each partner. It is important to get this all clear from the start, then there is likely to be less risk of a problem with financial arguments later on. Joint Credit Arrangements Something else to consider with joint finances is credit. This can be considered beneficial, or problematical, depending on your individual credit ratings. At some stage, though, you may both want to apply for joint credit. This is most likely with a big purchase, such as a car or a house. It is best to do that if you have joint credit. With joint credit, you will both be 100% responsible for the debt, even if you co-sign a loan with your partner, or add your name to your partner's credit card account. If, on the other hand, you decide to maintain separate credit, the general rule is that you are not responsible for each other's debt. An exception to this may be if the debt is considered a family expense. Should one person have had a bad credit record before marriage, then it is advisable for the other to keep their credit separate. A joint credit application will be considered based on the two crdit scores, and the lower one will drag down the other. This finance and credit article was written by Roy Thomsitt, owner and author of the Eliminate Credit Card Debt Now website.
MORE RESOURCES:
Credit - Google News |
|
|
|
RELATED ARTICLES
Credit Scoring: What You Dont Know Can Hurt You You've probably heard the term credit scoring. You may have some idea that your credit score can have an effect on your life. Update Your Computer System With Bad Credit Computer Financing The moment I placed myself in front of the computer screen a whole new world beckoned me to join it. And years of strolling have proved incompetent to get me acquainted with the full panorama of computers. The Art of Stoozing to Make Money from Credit Cards Make Money from StoozingStoozing, this is a sophisticated method of making money from credit cards that offer 0% introductory periods, the method requires cast iron discipline in never spending on the cards.But, I hear you all ask - what is stoozing and can I do it?Stoozing, in the simplest terms is borrowing money from credit cards that offer a 0% introductory deals and saving that money in a savings account for the duration of the offer on the credit card. Guide to Credit Terms Listed below is a useful guide to credit card terms. It is a list of definitions of credit card terms that may or may not be familiar to you. Addressing Bad Credit Card Debt Spending HabitsSo you've just got your credit card. The first thing you need to be wary about is that a credit card is very easy to use - afterall you can shop in stores, via catalogs and online with your credit card. Credit and Loan Help for Mortgage Loans Mortgage loans are some of the most difficult loans to receive if you have bad credit because lenders focus heavily on your credit score and history of making payments on time. However, there is credit and loan help for individuals interested in home mortgage loans. Special Credit Information for Married Couples If you are married, establish separate credit accounts.Try to finance real estate in just one partner's name to increase your investment financing potential. Important Things to Know About Divorce and Credit Joint debts remain joint debts.Both spouses signed a legally binding contract with the creditor, and a divorce decree neither amends this contract nor relieves the creditor's investment in you. Balance Transfers Introduction Credit card balance transfer involves using a credit card to pay off the amount outstanding on one or more credit/store cards. The total debt then moves to one card. Student Credit Cards STUDENT CREDIT CARDS With graduate debt averaging over £12,000, the ability to spread the cost of further education using a student credit card is obviously attractive. Adding to their appeal is the fact that these cards are relatively easy to obtain. Why Does Your Credit Card Rate Keep Going Up? Have your read your credit card contract through completely? Do you know when it is okay for your creditor to raise your interest rates? If you are not sure about how and when your rates can be affected over the life of your contract you should take a few minutes to read your contract thoroughly from beginning to end.Creditors must have clauses in their contracts that give them the right to change your interest rates. Getting Married? What Are The Finance and Credit Implications? There is a big difference between looking after your own finances while living alone, or with parents, and living with a partner. The transition can be very difficult, especially if both partners are strongly independent, or one partner is financially weak and the other strong. Ways to Look Good without Selling Your Soul to the Credit Card Sharks 1. Buy clothes at thrift stores. Identity Theft Exploding: Here's How You Can Avoid Becoming A Victim Americans are more concerned about identity theft than unemployment or corporate fraud, according to a survey of 2,000 people conducted by Star Systems.Nine out of ten Americans demand new federal legislation, while two-thirds say the financial services industry needs to do a better job of verifying the identity of customers who open bank accounts (66 percent) and credit card accounts (72 percent). How To Repair Your Credit Report A credit report is run on a buyer when he or she needs to buy something that will take a long-term loan, such as an automobile or a house. The credit report can come from one of three agencies - Equifax, Experian, and Trans Union. The Right Way To Credit Repair If you have a bad credit rating, then you might find that your ability to get financing, loans, and even some jobs is greatly diminished.Once you have a bad credit rating, it might seem like there's nothing that you can do about it? but you don't have to believe that. How To Get a Low Interest Credit Card Consumers often have the first credit card that they ever applied for, never really analizing how the interest rate affects their payments, but many other options exist and can help consumers decrease their payments and achieve financial stability.With interest rates on some credit cards rising to over 23%, even low balance credit card debt can be crippling. Can Credit Search Entries Affect Your Ability to get Approved for a New Loan in the UK? About Search Entries:Every time a lender checks your credit history from your credit file (i.e. My Student Credit Card Adventure And some practical advice too!My first credit card?I remember my college days when it seemed there was a credit card advertisement on practically every bulletin board on campus. The banks would travel to the college and set up application booths on registration day. Useful Tips on Borrowing Money Here are some useful tips on borrowing money. Borrowing money is one of the most common sources of funding for a small business, but obtaining a loan isn't always easy.
|
| home | site map |
| © 2006 |
