Credit Scores and Wedding Vows
When a couple marries, not only do they combine households, but they combine credit scores as well. Perhaps she is a saver who pays her bills on time. He is a spender who enjoys giving her lavish gifts. Charming initially, but maybe not so much when reality sets in. When the couple jointly applies for a loan, they may have an unpleasant surprise if one or both haven't learned to manage their finances. Each of us has a credit score, which is based on numerous criteria, including the length of a person's credit history, the amount and type of available credit on credit cards and revolving accounts, whether payments have been made on time or are habitually late or missed, and more. Though each credit reporting bureau has its own scoring system, the FICO score is most commonly used by lenders. Scores range from 300 to 850. If a couple jointly applies for a loan, both scores will be checked. The lender may take an average of the two scor...