Question about my Wife's Credit history

[Ime]

Before getting married last month, I ran a credit report on my wife and then on myself.

My credit report came back clean, as I suspected. My wife's credit report came back... ahem... let's just say her credit is as bad as mine is good.

Anyway, anyone have any suggestions as to what I should do to clean up her credit?

My first thought is to have her cut up all her cards, close all her accounts, and transfer all her balances to my accounts (I can take on and pay off her remaining debt easily). Effectively ending her credit history and just running our marriage off my good credit.

Is this a good idea? Bad Idea? Maybe I should do something different?

What do you folks think?

 

[Electric Amish]

I believe that unless you take outrageous steps after you're married, credit purchases will be assessed on a joint credit status.

amish

 

[PsychoAndy]

Originally posted by: Ime
Before getting married last month, I ran a credit report on my wife and then on myself.

My credit report came back clean, as I suspected. My wife's credit report came back... ahem... let's just say her credit is as bad as mine is good.

Anyway, anyone have any suggestions as to what I should do to clean up her credit?

My first thought is to have her cut up all her cards, close all her accounts, and transfer all her balances to my accounts (I can take on and pay off her remaining debt easily). Effectively ending her credit history and just running our marriage off my good credit.

Is this a good idea? Bad Idea? Maybe I should do something different?

What do you folks think?

If you transfer all the balances, I dont think you're solving the problem in the first place.

Why is her credit so bad to begin with IYDM? She just like Prada bags?

-PAB

 

[ElFenix]

Originally posted by: PsychoAndy

Originally posted by: Ime
Before getting married last month, I ran a credit report on my wife and then on myself.

My credit report came back clean, as I suspected. My wife's credit report came back... ahem... let's just say her credit is as bad as mine is good.

Anyway, anyone have any suggestions as to what I should do to clean up her credit?

My first thought is to have her cut up all her cards, close all her accounts, and transfer all her balances to my accounts (I can take on and pay off her remaining debt easily). Effectively ending her credit history and just running our marriage off my good credit.

Is this a good idea? Bad Idea? Maybe I should do something different?

What do you folks think?

If you transfer all the balances, I dont think you're solving the problem in the first place.

Why is her credit so bad to begin with IYDM? She just like Prada bags?

-PAB

you know a deal on prada bags, don't you

 

[RossMAN]

Every credit situation is unique so before offering any advice we need to know a lot more.

How old is your wife?
Do you know what her FICO credit score is? If you don't you could get it online for around $9-$12.
When you say her credit isn't as good as yours, can you specify why? If she has had late payments were they 30, 60, 90, or 120 day late payments? Any charge offs, tax liens, repo's, foreclosures, bankruptcy's, etc? If so which one and when did it occur (month/year)?
How long has she had credit since?
How many cc's does she currently have open? What are their balances and limits, are any of them currently past due?

It is possible to clean up your wife's credit but it's going to take discipline, planning and time (years).

 

[Descartes]

Effectively ending her credit history and just running our marriage off my good credit.

Uhh, her bad credit will be with her for years to come. It doesn't simply vanish when you no longer have open accounts...

 

[Ime]

Originally posted by: PsychoAndy

Originally posted by: Ime
Before getting married last month, I ran a credit report on my wife and then on myself.

My credit report came back clean, as I suspected. My wife's credit report came back... ahem... let's just say her credit is as bad as mine is good.

Anyway, anyone have any suggestions as to what I should do to clean up her credit?

My first thought is to have her cut up all her cards, close all her accounts, and transfer all her balances to my accounts (I can take on and pay off her remaining debt easily). Effectively ending her credit history and just running our marriage off my good credit.

Is this a good idea? Bad Idea? Maybe I should do something different?

What do you folks think?

If you transfer all the balances, I dont think you're solving the problem in the first place.

Why is her credit so bad to begin with IYDM? She just like Prada bags?

-PAB

My wife does not understand the concept of credit. Before we were engaged, if someone sent her a loan application, or offered her a credit card, she would take it. Then she'd max out the account. We had a long LONG talk after that... I'm convinced she will no longer just spend money without asking me first. So far she has kept her word. Of course it would help if I have her cut up all her cards and then give her copies of my cards... then she cannot spend too much.

That joint credit status thing does worry me though. It'd be nice if I could tell creditors. "Look, we're married and I control the money now, so look at my credit not her's".

 

[clarkmo]

Well, without details, it's a little hard to give accurate advice. But, there is one thing you can always do. Ask the credit bureau to verify the information, one account at a time. Request, in a letter, thay they verify info on an account. The procedure is outlined in the credit report. They have 30 days to verify the information and respond. If they do not have the info back from the credit grantor in time, the item must be dropped from your report. If you are lucky some will be dropped just because of the time issue. Credit grantors focus their resources on collections, not compliance. I wouldn't do them all at one time though.

 

[Ime]

Originally posted by: RossMAN
Every credit situation is unique so before offering any advice we need to know a lot more.

How old is your wife?
Do you know what her FICO credit score is? If you don't you could get it online for around $9-$12.
When you say her credit isn't as good as yours, can you specify why? If she has had late payments were they 30, 60, 90, or 120 day late payments? Any charge offs, tax liens, repo's, foreclosures, bankruptcy's, etc? If so which one and when did it occur (month/year)?
How long has she had credit since?
How many cc's does she currently have open? What are their balances and limits, are any of them currently past due?

It is possible to clean up your wife's credit but it's going to take discipline, planning and time (years).

MY wife is 31, I'm 29.
Her credit score was... lemme find it.... 470.
She has had many 30 day-late payments, several 90 day-late payments, and 2 collection agency referals. No repo's, bankruptcy's, foreclosures, or the like. The last collection agency referal was 2 years ago.
She's had credit for about 7 years now. (She came here from the Phillipines 7 years ago)
As far as balances, let me think (that info is at home)... she has around 10 open accounts. Combination of CC's and a couple of signature loans I believe. Total debt is less than $10,000.

As I said, I can pay off her debts easily enough. I'm also sure she will no longer spend money, she's kept her word for a year now. My big concern is how her credit history will affect mine (and I have a nearly perfect credit history).

I get the feeling her credit history is going to hurt mine now that we are married...

 

[Woodie]

I've found one effective solution to be:

Make HER pay the bills with you. Make sure you itemize out how much of a payment is going to INTEREST, and how much is going to the balance. Provide documentation for how long it will take to pay off this debt at the minimum payments (often an infinite number).

Take the CCs, and freeze them in a block of ice. That way, every time she wants to use one, she has to THINK about it, and take the time to unfreeze the card. (can't microwave it, and can't carry it with her for those spontaneous purchases)

Make her record every CC purchase she makes per month, as she does it.

I would also suggest that you leave her one CC, (w/ a low limit), as her "private" one, that she manages, and can use for buying what she wants--but, she has to pay for everything on the card. Make the same arrangement with your own cards. All the rest should be paid out of a "joint fund", to which both of you contribute the majority of your earnings. Note: These "private" cards should also be frozen, and NEVER carried with you. (except on vacation, for emergencies).

Good luck!

As far as the credit stuff, it sounds like it's mostly old stuff, so it shouldn't affect you that much. What do you plan to purchase in the next year? As with many things, the more recent behaviour is far more significant than the older stuff.


edit: Credit Report stuff

 

[roncarter]

Originally posted by: Ime
Before getting married last month, I ran a credit report on my wife and then on myself.

My credit report came back clean, as I suspected. My wife's credit report came back... ahem... let's just say her credit is as bad as mine is good.

Anyway, anyone have any suggestions as to what I should do to clean up her credit?

My first thought is to have her cut up all her cards, close all her accounts, and transfer all her balances to my accounts (I can take on and pay off her remaining debt easily). Effectively ending her credit history and just running our marriage off my good credit.

Is this a good idea? Bad Idea? Maybe I should do something different?

What do you folks think?

i say break up with her

that irresponsible to have bad credit.. meaning she doesnt care about the important stuff. that means she does not care about you

divore her right away man

 

[Ime]

Originally posted by: roncarter

Originally posted by: Ime
Before getting married last month, I ran a credit report on my wife and then on myself.

My credit report came back clean, as I suspected. My wife's credit report came back... ahem... let's just say her credit is as bad as mine is good.

Anyway, anyone have any suggestions as to what I should do to clean up her credit?

My first thought is to have her cut up all her cards, close all her accounts, and transfer all her balances to my accounts (I can take on and pay off her remaining debt easily). Effectively ending her credit history and just running our marriage off my good credit.

Is this a good idea? Bad Idea? Maybe I should do something different?

What do you folks think?

i say break up with her

that irresponsible to have bad credit.. meaning she doesnt care about the important stuff. that means she does not care about you

divore her right away man

You obviously did not take the time to read the thread. I stated she has changed her behavior in the last year, and no longer spends money like it's going out of style.

The main aim of my posting was to get an idea how badly her bad credit might affect me.

As it stands I have an appointment with a someone who knows alot more about this than I, so they should be able to help me out.

Thanks!

 

[Viper GTS]

Originally posted by: roncarter

Originally posted by: Ime
Before getting married last month, I ran a credit report on my wife and then on myself.

My credit report came back clean, as I suspected. My wife's credit report came back... ahem... let's just say her credit is as bad as mine is good.

Anyway, anyone have any suggestions as to what I should do to clean up her credit?

My first thought is to have her cut up all her cards, close all her accounts, and transfer all her balances to my accounts (I can take on and pay off her remaining debt easily). Effectively ending her credit history and just running our marriage off my good credit.

Is this a good idea? Bad Idea? Maybe I should do something different?

What do you folks think?

i say break up with her

that irresponsible to have bad credit.. meaning she doesnt care about the important stuff. that means she does not care about you

divore her right away man

And here we have an example of someone who achieves the impossible - Walking around with their head embedded firmly in their ass.

Her recent credit record + attitude is far more important than her past. Many people have no clue how to manage their credit, and end up in trouble. Once they've recognized they're in trouble and dig their way out, should you hold the past (which they can't erase) against them? They will drop off in time, the key is that she doesn't get any NEW negative marks.

That being said, 470 is horrible. I have a friend who filed bankruptcy who has (IIRC) a better score than that.

Luckily, though, you can fix it. It will just take time.

Viper GTS

 

[Oakenfold]

Going to be rough going on your own for a few key things.

1. Debt to income ratio----unless you make quite a bit more and then some this could affect buying houses, loans, auto's etc.
2.What if you become injured and can't work? If your credit goes down the tubes what will you do then?

I would help her repair her credit, if any of her accounts are still open I would make sure they are paid on time every month, close out the high interest rate ones but don't close them all as you need to build her credit somehow.

 

[Pacfanweb]

Originally posted by: Ime

Originally posted by: roncarter

Originally posted by: Ime
Before getting married last month, I ran a credit report on my wife and then on myself.

My credit report came back clean, as I suspected. My wife's credit report came back... ahem... let's just say her credit is as bad as mine is good.

Anyway, anyone have any suggestions as to what I should do to clean up her credit?

My first thought is to have her cut up all her cards, close all her accounts, and transfer all her balances to my accounts (I can take on and pay off her remaining debt easily). Effectively ending her credit history and just running our marriage off my good credit.

Is this a good idea? Bad Idea? Maybe I should do something different?

What do you folks think?

i say break up with her

that irresponsible to have bad credit.. meaning she doesnt care about the important stuff. that means she does not care about you

divore her right away man

You obviously did not take the time to read the thread. I stated she has changed her behavior in the last year, and no longer spends money like it's going out of style.

The main aim of my posting was to get an idea how badly her bad credit might affect me.

As it stands I have an appointment with a someone who knows alot more about this than I, so they should be able to help me out.

Thanks!

Her credit history will not affect your at all. She can get all the cards she wants right now (if they'll give her one) and it won't affect your score one point, as long as she's the only one on the account.
You can go out and ruin your own credit and it won't affect hers a bit, as long as all your accounts are not joint.

Paying off all her balances and closing the accounts will bring her score up dramatically. It won't make things perfect, only time will do that, but it will help more than anything else you can do right now.
Having a lot of revolving credit accounts that are close to or completely maxed out just kills your score.

I agree that having her sit with you while you pay the bills may help her understand. My personal opinion is that you're going to have to play detective for as long as you are married to make sure she doesn't open any more accounts. You would be best off to completely take over all the finances and maybe let her have a small card to shop with, until she proves that she is worthy of credit freedom.
It will be better for both of you.

Good luck.