I have several credit cards in my name only in which I have fallen behind in payments. I plan on paying each one off one by one, lowest balance first, therefore I can at least see progress! I have decided against a credit counseling agency and I am planning on negotiating with the creditors myself when I have the funds to pay the balances off. I do know how this is going to effect my credit score. Unfortunately,, this is the route I needed to take in order to learn a huge life lesson. We had excellent credit up until now. I stoped working back in May and this is what the consequences of that decision are. My concern is that this will effect my spouse’s credit score as well. Our home mortgage is in both of our names. In the future we may sell our home,(that would be when I would pay-off all of my debt) however the next mortgage would be in his name only. I would appreciate any advice-thanks…..
If credit cards are in my name only will my spouse’s credit score be effected if I default on a payment? ?
23
Mar
Steve D
March 23, 2010 at 3:09 am
If the cards are truly in your name only, they will not harm your spouse’s credit – just make sure that he keeps on top of his credit reporting by getting his free report every year from each of the three credit bureau’s.
I applaud you for making the commitment to pay off your cards. If you plan on negotiating with the companies, start now – don’t wait. Also, if you can, make any payments, but do it in reverse order of interest rate – paying as much as you can on the highest rate card first, while making minimum payments on the others. This will save you money in the long run.
rennickelizabe
March 23, 2010 at 3:48 am
it should nt affect his as everyone has their own credit score good for you as i am planning to do the same as you
The German
March 23, 2010 at 4:17 am
I don’t believe the credit issues you have will affect your spouse’s credit score because those cards are attached to your social security number and not your spouse’s. I think it is a good idea to kill the lowest balance first. You will get momentum and then either cut up the card if you still are tempted and close it or you may want to keep the account open, but cut up the card so you can’t use it. If your account is open that is a length of credit history that does affect your score, but not as much as pay history. The longer you have an account with someone the more it helps your credit score.
Just consider that if you both were to be on a mortgage, the mortgage company will use the lower of the two scores for a conservative credit approach resulting in a higher rate and probably a higher down payment. If your spouse’s credit and income are only used, then you may qualify for less money than you did with both of your incomes. First things, first. Pay down the credit card balances. Credit card debt is the #1 reason people have poor credit. Worry about a new mortgage when all your credit cards are paid off and you can start fresh.
surelycoolgirl
March 23, 2010 at 4:33 am
If they are in your name ONLY it will not effect his credit score. That was a wise decision on your behalf to put credit cards in your name alone. That way if something did happen like it has, it will only effect you and he can go the loan for anything the family may need until you can get your score back up. You are also wise in not dealing with a credit counseling agency as in my eyes, are a rip-off.
Good luck- I hope everything works out for you! We all have to learn life’s lessons and sometimes it is the hard way.