Marriage is quite the adventure. Everything you do suddenly impacts someone else, even more so than when you were dating. And this is particularly true of financial matters.

People can go back and forth about whether or not joint bank accounts are the best things for a couple. And there are good points on both sides. Joint accounts take care of the question of whose account pays for which bills, for example. But other people like to keep things separate, either because that’s just how they like to run things or because their spouse doesn’t have the same money spending or saving habits they do.

There are similar issues for credit cards.

A joint account can be a good idea, as either of you can use it and most purchases will probably be for both of you, but it can also have some bad points.

The Good Point

For the one with the lesser credit score, getting a card together is a chance to get better credit. The card will still need to be paid properly. But if you can both keep from making mistakes you can bring the lower score up over time.

The Bad Points

The flip side of someone with a good credit score getting credit with someone who has a lesser credit score is that if they continue to make mistakes your credit score can go down too. Any combined accounts will impact both of your scores.

This also means that if one of you starts having trouble with money or starts abusing credit, it’s going to impact both scores. While most people trust their spouse, things happen. It’s not always about being unreliable. Sometimes it’s just a bit of bad luck.

Many couples will be able to rely upon each other’s credit with no problems whatsoever. Whether or not you combine or get new joint accounts, the most important thing is to keep each person’s credit score in good shape.

Why?

Let’s assume you come to a time where you can buy a home. Odds are both of your names will be going on that mortgage. You’re buying a home together, after all. If one of you has a poor credit score you will both be stuck with a higher interest rate on your mortgage.

Remember that the only way your credit scores interact with each other is on your joint accounts. If you have trouble keeping up with a joint account, it will impact both scores. But if you keep all your credit accounts separate, problems for one will not mean problems for the other. The credit bureaus do not care if you’re married. Their only interest is how you treat your credit.

Most people know that a good credit score can help you in many ways, even if you don’t want to be in debt. It gets you better rates on loans for those purchases for which most of us need a loan, such as car loans and mortgages.

But a lot of people assume that you need to owe money for a time in order to get that credit score. How necessary is that?

I’ll start by noting that a good credit score is a necessity, unless you earn so much money that you can pay outright for every purchase you ever need to make, including a home. But just about everyone needs to borrow money for such a purchase. You should assume that you do need something of a credit history. It goes beyond purchases. It impacts your ability to rent an apartment, insurance rates and sometimes even your career.

However, being in debt is not the only way to build your credit history. You can have credit cards and just pay them off monthly. That’s showing the kind of financial responsibility that lenders want to see too.

Now, if you really, really feel you need to carry a debt to improve your credit score, make it small. As insignificant as possible. At the best interest rate possible. Why should you pay more than you have to if you feel a need to do this?

Do note that I’m not really recommending that, but since many people feel that’s the way to build credit I mentioned it.

The biggest trouble with the theory of carrying debt to build a credit history is that it makes being in debt a comfortable thing. It should never be comfortable, especially if it’s credit card debt. It’s far better to build your credit history without carrying debt if you can manage it.

It is smart to have some credit available to you, but focus more on saving money. A solid savings account can help you through those rough times that would otherwise result in an increase of debt, or even out of control debt.

There are a lot of issues right now with people being so far into debt that they can’t get out. If you don’t have a credit history now, take a lesson from this and think about how you want to manage your credit score over the long term. A habit of debt is not the smartest way to go about it.

A good credit score matters when you’re about to try to get a particular loan, such as for a car or a house. A small difference in your interest rate will add up through the years, making it very worthwhile to get your credit score in shape before applying for anything. These are some things to consider at such times:

1. Don’t apply for other credit.

Each time you apply for credit, it can impact your credit score. And if you’re getting more credit cards, that’s an impact too.

2. Beward of closing out credit accounts.

A lot of people like to consolidate all their debts onto one card, and close the remaining accounts. This is a bad idea because you lose out on your credit history from those closed accounts if it’s positive. Painful as it may be to not use an open account, keep it open.

3. Pay all bills on time.

You might be surprised at what can get reported to the credit bureaus. It’s easier than ever to pay bills on time, with all the online and automatic payment options out there. Take advantage of these, and keep track of everything that you still need to send a check in for or that you need to long on for to pay.

4. Pay down your credit cards.

Companies like to see you using less than 30% of your available credit line. Don’t think that opening new accounts to increase your overall credit line is a good idea, however. It’s better to pay down your existing accounts than to open ones you don’t need.

5. Talk to creditors when you’re having problems.

Or not having problems. If you just want a lower interest rate, call and ask for one. It can happen.

But if you are having problems, call and ask them to help you. If you can even send in a partial payment and make it clear that you will keep paying, they can be lenient.

6. Check your credit report with all 3 bureaus.

You might be surprised at the mistakes that can sneak onto a credit report. If you’re going for a big purchase, you want this information to be as accurate as possible and you need time for incorrect negative information to be removed.

This means don’t leave it for a week before you want to start applying. Start a couple months out so that you have time to gather your information and so there is time for the information to be removed.

It really is necessary to check with all three. They can have very different information.

Some credit cards require good credit. These cards offer better interest rates and terms for the consumer. But you may not be sure that you qualify for them. How do you know?

The first thing to do is be aware of your general credit history. You should have a general feel for this anyhow. Details such as how often you’ve been late or missed a payment, and other such problems you are probably aware of. If you’ve had a lot of these issues in recent years, your credit may not be up to a good credit standard.

You should also look at how much debt you are carrying relative to your income. If this is out of balance, you will be seen as a greater credit risk, and so your score will be lower.

But it’s always a good idea to know more about your credit. You can get your credit report free from each of the credit bureaus annually, and you should consider taking advantage of this regularly.

There are of course other factors, such as how far back your credit history goes, how often you apply for new credit and other issues.

In general, a score of at least 650 is good. The trick is that the credit bureaus may not always show you your score when you get your free report. This is why you have to have a feel for what it all means before you apply.

Technorati Tags: good credit, credit cards for good credit, good credit score

The only bad things about credit cards is that they mean debt and they cost you money. Depending on your interest rate this can be a lot of money. But if you qualify you can pay a lot less than you may be paying right now.

Once you have started to build up a credit history, you really need to look at what you are getting from your current cards. If the rates are high it’s time to reassess what you are getting.

The simplest way to get a low rate on your credit card may well be to call and ask for one. If you’re getting credit card offers in the mail already, use them for comparison of what you could be getting. And if the first person you talk to says they can’t lower your rate, ask for a supervisor. Persistence can pay off big time.

But sometimes you want a new card for one reason or another. Maybe the current credit card issuer you are with is not pleasing you. You need to know which card you are most likely to be approved for at a low rate.

Start out by getting your credit report. You can do this free once every year from each of the big three credit bureaus. Look it over for any problems. Clear them up before applying for anything – this will improve your odds of being accepted with a low APR.

Choose the card you want to apply for carefully. Some low rate credit cards will specify that they are for people with good credit only. If you have problems with your credit report these will probably only cause you to be declined. Being declined for credit is not the healthiest thing for your credit score.

Similarly, you should apply only for one credit card at a time. Odds are you do not need more than one new credit card anyhow. Once again, a lot of inquiries into your account can look bad.

Not all low rate credit cards will demand near-perfect credit. If you have problems with your credit, take a look at the cards for people who have credit problems and see who will still offer a decent rate. But remember that unless your credit is really bad you can probably get a card fairly easily, even without focusing on your problems.

Much as you may feel the need to have a credit card, it is not something you should rush into too quickly. The smarter you can be with your credit the easier it will be to have good credit.

Technorati Tags: low interest rate credit cards, low apr, credit card qualifications

A good credit score is a huge advantage when it comes to borrowing money. It can mean the difference between paying 5-6% interest on a mortgage and paying around 9% on a mortgage. It can have similar or even great impacts on other kinds of loans. It’s worth having good credit.

A the best credit scores are in the 720-850 range, although scores over 700 are still pretty good. Go beneath a score of 560 or so and you are looking at paying a lot more when you owe money.

How Do You Get a Good Credit Score?

Be good with your credit, of course. That’s the simple answer but there’s a bit more to it than just that.

If you have no credit at all, start out by establishing your credit with a card you use monthly and pay off. It will show that you know how to use credit. If you want to buy a home, having some sort of credit history is vital. Just one card is necessary, and avoid paying a fee if at all possible.

If you can’t avoid paying a fee, deal with it for six months to a year, then ask for it to be removed or choose a new card that won’t charge you a fee. There’s no point in paying a fee any longer than necessary.

The one vital ingredient to having a good credit score is treating your credit right. The first thing you need to do is use it wisely. Most important is to always, always pay your bills on time.

This is not just your credit card bills, although these may be the most important, along with any other loans you may have. Any company that loans you money is probably the most likely to be reporting to the credit bureaus, after all. But if they find out that you have been late on any other bill, most credit card companies reserve the right to increase your interest rate.

You also should do everything you can to keep your debt load down. This means try not to use more than 30% or so of your total credit limit available on your cards. Do not max out any of your credit cards.

Go Beyond How You Use Your Credit Cards

There’s one very important step to maintaining a good credit score that all too many people skip. In the past it was no doubt in part because it cost money to do so.

But now it’s free. This would be checking your credit report annually. Everyone has a right to get their credit report for free once a year from each credit bureau. If you want to be sure that your credit is where you think it is, you need to do this.

http://www.annualcreditreport.com/ was created by the three credit bureaus to offer a centralized place for you to ask for your reports. You do not need to ask for all three at the same time, although you can. This is the only authorized site for ordering the free credit reports that you have a right to every year.

Read over your credit report. Note any discrepancies. It is not uncommon to have several. Dispute these as necessary.

Doing this will also help to protect you from identity theft, or at least stop the problems early on. If you become aware of an issue with fraudulent use of your identity early on, there should be fewer issues to fix. It’s well worth the effort.

Technorati Tags: personal finance, improve credit score, debt, apr, interest rates

If you’re one of the fortunate ones who has managed to manage your money well, you may find that sometimes you do wish that you had done more to build your credit score. A near complete lack of a credit history can be quite a disadvantage.

But is it worth it to get a credit card and carry a small balance just to build your credit score?

Carrying a balance – no, not worth it.

Getting a credit card – yes, probably worth it.

The trick is to have it, use is and pay it off each and every month. You don’t have to use it a lot, just enough to show that you are responsible with credit. That’s all you really need to start building a credit history.

One very important thing to avoid is paying an annual fee on a credit card. Very few people really benefit from cards with annual fees. Some do, as they use it in a way that more than makes up for it, but if you’re keeping things to a minimum, there really is no point.

Having a credit score can help you in many ways. You may have saved up enough to buy a car without a credit history, but what about a house? Having a good credit score will help you get the best possible rates on your mortgage.

Similarly, a good credit score can help you get lower insurance rates and can even be relevant to landing a job. Some employers do check these things.

The easiest time to do this is when you are a student. Credit cards for students are quite easily available, as credit card companies know this is an important time to get new customers. But if you aren’t a student, don’t give up hope. You should still be able to get credit with minimal difficulty. You may get a high interest rate and a low credit line, but if you aren’t going to use it much, who cares?

Technorati Tags: credit cards, credit score, building credit score

Before you start shopping for a home loan or auto loan, there is one very important step you must take. You must check your credit and make sure that your record is as clean and accurate as possible. You need to give yourself time to get this done before you start shopping for loans. And that means starting probably a couple months in advance.

The very first thing you need to do is get your credit report from each of the credit bureaus. You can get this free once a year right now. Each of the companies will have slightly different information on you, so getting all of them is very important.

Check each report for accuracy. They may range from quite accurate to wildly inaccurate. People have been know to find information from completely unrelated, unknown people.

For each individual inaccurate piece, you want to write a letter to the credit bureau that has that information. Include documentation if you have any.

One of the most common mistakes is to have the same account listed two times, with the information differing just slightly. This makes you look like you have more debt than you actually do, which lowers your overall score.

Another is to fail to show when an account has been paid off. Show that the debt is paid off, and you can bring your score up a little.

For each item, the credit company that listed it has 30 days to dispute what you have said about it. If they do not, the item is corrected.

It can also be good to ask companies that you are paying regularly but not showing on your credit report to share their information with the credit bureaus. Most will do this if asked.

All of these steps are things you can do quite legitimately and without paying someone to do it for you.

The challenge, of course, is remembering to do this enough in advance to do you any good. You have to request the credit reports, receive them, find the paperwork that supports any changes you want made, then wait at least 30 days to see what happens. Obviously there is a huge advantage for those who plan ahead.

There is one final way to improve your credit score. Pay down your current debts so that you don’t owe so much. Do not close the credit card accounts you pay off; long established accounts in good standing are beneficial to your credit history, more so if they are still open.

Technorati Tags: improve your credit, clean up credit, free credit reports, credit bureaus

When your debts start to make trouble for you, it’s time to really work on them. Check that. You should work on them long before that. The less unnecessary debt you have in your life the better.

Some debt is often necessary for a time. Buying a home, for example. Even buying a car. But when your debts get beyond where you can pay them easily, it’s time to figure out what to do.

Too high a debt load is bad for your credit score. This means that knocking your debts down is one of the most basic forms of credit repair. And you can do it yourself with some determination.

If you start falling behind, the first thing you need to do is contact your creditors. Don’t wait for them to send your bills to collection agencies. Most companies would rather work directly with you than pay an agency to handle it, so long as you keep it reasonable. Talk about what you can do and what you would like them to do for you.

As you work with the credit agencies, you need to figure out how to manage your budget with what they expect of you. If you can keep up on your agreed repayment plan you will be in much better shape overall. Living on a tight budget will be worth your while if it means you can improve your credit score.

Technorati Tags: credit repair, debt management

It happens to many of us. You apply for a credit card, only to be told that you can’t have one. Your credit score just isn’t good enough.

Now what?

If your credit is good enough that it shouldn’t have been rejected, you may want to consider the possibility of human error. Did you fill the form out correctly and completely? Legibly? Could you have miswritten any of the information required to make a good decision about offering you credit?

What about your credit report? How long has it been since you checked that? Since you can get one free annually, there’s no good excuse to not be checking on that regularly. You won’t always be aware right away when your identity has been stolen, and the inability to get credit you should have qualified for might just be your first indication.

On the other hand, maybe you just don’t have the credit score for the card. That doesn’t mean you’re doomed to spend life without one; it just means that the particular card wasn’t the one for you. You may have to reassess the kind of credit card you want to try for.

If this is the case, you definitely want to improve your credit score. You need to think about the factors that may have caused your score to be low.

A common reason is that you have been missing payments or making them late. This doesn’t have to just be on your credit cards – any place that you make payments to can report to the credit bureaus. The phone company, for example. The electric company. Even your landlord.

If you’re behind on anything, get caught up. If they’re reporting to the bureaus, this should help your credit score.

Another possibility is that you have just too much credit extended for your income level. Credit card companies won’t be willing to extend you additional credit if you are overusing your ability to get credit already. This means you need to pay down any high balances you may have.

However, you do not necessarily want to cancel excess accounts. Cancelling them can mean they will drop from your credit report, and if you drop too much, your score itself may drop. A part of your score hinges on your ability to have credit that you aren’t using.

Wise use of your credit should make it relatively easy to get credit cards when you need them. But failing to keep up with payments and not keeping track of what your credit report shows can quickly mess you up.

Technorati Tags: credit card applications, poor credit, declined credit