Apr 232013

Take into account all the pros, cons and responsibilities involved in getting joint credit as a couple. Societies approach to Marriage or Long Term Relationships have changed a lot in the last few years – Credit Rules have not!  Improve your credit literacy.

A joint credit loan includes you and your spouse’s income, financial assets, and most important your combined credit history.

The benefit is that the credit grantor assesses your collectively credit reports and financial profiles; your financial picture may prove much stronger in helping to get approved for better credit terms. You pay less to borrower!

This can be a good thing or not, when it comes to your respective credit reports! If, both partners have R1 credit reports it is a good thing. Banks and finance institutions usually welcome a joint application; it strengthens the deal by adding the paying power of two incomes; limiting the risk factor.  However, if one of the partners is less than R1 in their credit report, this could affect either the approval or the interest rate of the approval.

Understand your obligations – Joint Credit means both of you are responsible for ensuring that debts are paid, no matter where the marriage or long term relationship ends.

You are both responsible for the debt; even if you separate and/or divorce the debt obligations are assigned to each spouse.

The danger here is that a bitter ex-spouse can seriously jeopardize your credit history through these jointly-held accounts.

Joint accounts will appear on both of your credit reports, so if one of the ex-spouses does not pay per contractual agreement, this information will reflect on both credit reports.

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