Tag: credit

Credit scores are so… grown-up; but so too are true love and marriage. Sure, money in the bank plays a role for many people, but motivations aren’t nearly as clear when it comes to the intangibility of credit standing. Credit opens doors and opportunities (or prevents them), which can begin to strain even the best marriages.

With that in mind, it's important to understand the what's at stake with a good or bad credit score. Understanding these pitfalls will help you and your spouse move forward.

Millennials today, more than ever, are trying to navigate through the difficult maze of financial independence and security. The problem is many times they may face several challenges along the way primarily because they don’t understand some key points when it comes to their credit scores.

I have a few tips Millennials should consider reviewing with their financial advisor or CPA in the near future.

Are the two of you really ready to buy your first home?

I often help newly-married couples negotiate the purchase of their first home. They are always enthusiastic after driving through preferred neighborhoods and singling out those homes they identify as fitting into their price range. They have saved a down payment, they say, and are ready to not only look, but present offers. It is then that I offer them the following advice—a checklist—of eight practical steps to take before moving forward:

Does your spouse take credit for your ideas? Or do people compliment your spouse for tasks or projects that you did? Do you get the credit where credit is due?

For example, Jill maintains a beautiful garden and takes a lot of pride in it. One day, a neighbor comes to visit the couple and comments to Jill’s husband, Joe, that they’ve got a lovely garden and that it must take a lot of work to maintain it. Joe promptly responds with a hearty, "Thank you!

You or your spouse’s parents are more vulnerable to identity theft because they are more trusting and less aware of the increasing variety of scams. Although they may have no interests in the complexities of smartphones, computers, the internet and online banking, the many whom give it a try leave themselves defenseless against thieves.

The elderly—particularly those who need your assistance in living—can be easily targeted online or through the mail in old-fashioned schemes to steal their identity and ultimately their money.

A credit report is a history of how you or your company borrow and then pay off your credit, including delinquency and bankruptcy. There are currently three main credit bureaus in the United States—Equifax, Experian and TransUnion. If you own a home, have a credit card, lease a car, or apply for or use credit of any sort, this information is reported to one, two or all three of these credit bureaus. In addition, they collect information on how timely you pay your bills, how often you are tardy, how frequently your credit is checked by companies and any changes of address, employment, or personal information.

Buying a home is a priority for many couples, but bad credit scores often thwart the plans of prospective home buyers. If you have a credit score below 700 with a high debt-to-income ratio (above 30 percent) and you’re applying for a loan worth more than 78 percent of the value of your desired home, your chances of getting a mortgage are only 68 percent, according to an Urban Institute study. This means that your odds of being turned down are nearly one in three.