Marriage and CIBIL Score Guide
When you get married, it affects many things in your life personally as well as financially. It may not have a direct impact on your financial circumstances, but it does affect your credit score indirectly because of the actions of your partner. Your credit score is not left behind from this effect if you are getting married to a person with low credit. You should know about a few things that you could use to have a great credit report to enable your spouse and you to get the loans and credit at the time of need. Both of you must have a financially disciplined living. Your spouse’s CIBIL score may affect you in the following ways:
No direct or immediate impact
When you get married, it does not have an direct or immediate impact until you hold individual credit cards and accounts.
When the CIBIL of your spouse is low
The CIBIL of your spouse may not pull down your credit score. However, when you plan to apply for a joint loan, the bank may charge higher interest on it.
When the CIBIL of your spouse is high
If the credit score of your partner is higher than your score, it will not improve your CIBIL. In fact, you may have to pay higher interest when you apply for a joint loan.
Most couples hold a joint account. If your spouse does not show responsible behavior to pay his/ her debt, it may be a pain for your credit score in case you hold a joint account. In order to protect your rating, you can take a few measures. For instance, do not endorse for joint agreements, restrict authorized users, keep your individual checking account, etc. These measures can help you maintain a good credit score and control your finances.
Applying for joint loan
Like all other aspects of your life, marriage may give you great synergy for financial managements. Although both partners should maintain individual credit score, you can depend on your partner’s credit score when in times of need. When you apply for loan jointly, the bank considers the CIBIL rating of both partners. In most cases, couples do take a joint loan because of its advantages such as you can get more amount of loan jointly, have tax benefits, and the responsibility of repayment is shared.
What females should remember while getting married?
These tips are helpful for women a few years after their marriage:
If you are going to change your name after marriage, you must inform about the same to all the concerned institutions such as banks, credit card issuers, passport office, CIBIL, lenders, etc. It will make sure that these institutions make necessary changes in your records. Your credit rating will be maintained with your new name.
You should not surrender all the credit cards and close the bank accounts held in your previous individual name and choose to have only one joint account or have an add on credit card. You should maintain your own credit score and have your individual bank accounts, credit cards, which can prove useful for you in future. In case of an unfortunate event in your family, if your partner is not able to maintain his CIBIL, your credit rating may prove beneficial. You can take small loans and keep them going rather than prepaying them to maintain your credit score.
If you do not possess your separate credit trail, you must start it after marriage. You can take a personal loan for six months and pay it responsibly to establish your good credit behavior.
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