Julie a 20 year old full time college student married Bert a 24 year old medical work. On the day she signed their marriage authorise her credit report score began to change state. Julie knew Bert had been previously married and though that marriage had lasted only two years it was long enough to spread a bad credit virus onto her and Bert's joint credit report score. Bert's ex-spouse. Camille already had delinquent credit before she married Bert. And she had continued being delinquent during her marriage to Bert and after the divorce. Unbeknownst to Bert. Camille's bad credit had passed onto him when he married her and then passed on to his new bride. Julie. Why? Because when couples unify assets; as well as debts change state joint. Unfortunately break does not nullify financial obligations change surface if a adjudicate specifies in a break decree which spouse is responsible for re-paying which bills. But this is just the beginning of Julie and Bert's bad credit horror. Julie had racked-up several thousand dollars in student loans. After she married Bert she dropped out of college and that action initiated the loan repayment period. Like Bert she also has a beat time job but it's hard to pay the debt because of other bills. In the divorce decree with Camille. Bert retained possession of the car which still had loan payments due. Camille received all the furniture in the break settlement. Bert and his new bride. Julie had to acquire new furnishings for their apartment. Additionally they had spent a lot of money on their wedding and honeymoon. Together they had a lot of debts to repay and some bills were being paid late. Their credit score continued to dive. They got an idea. They would balance transfer Julie's credit card and Bert's credit card to a new credit card that offered 0 interest fit transfers for the first six months. Unfortunately since their credit score was bad due to excessive debt-to-income ratio and late payments they were rejected by the card issuer. Bert refinanced his car to displace the monthly payment. Since his credit was bad he had to increase the call (repayment duration) of the loan an additional two years and at a higher interest rate than the original loan but he was able to get $1,000 in equity. He and Julie used the $1,000 to catch up on their bill payments. Six months later now that they had caught up on their payments which also lowered their overall debt-to-income they reapplied for the 0 intro balance transfer credit card and were accepted. They transferred their credit cards to the 0 intro card. Three months later they received a letter from the new card issuer that stated their 0 interest period had been terminated. Why? Because Julie and Bert had mailed an auto loan payment a few days late. The late payment was reported by the auto lender to a credit reporting agency which lowered their credit score. The new card issuer's terms required Bert and Julie to maintain (or improve) their credit score by making all payments (not just payments on the card) on time. In addition to terminating the 0 interest period the issuer also increased their APR evaluate. Other than ordering credit reports before marriage what could Bert and Julie have done differently to avoid the bad credit virus? Before divorcing Camille. Bert should have made sure all debts assigned to her would be repaid and repaid on time. Obviously the only sure way to have done this would have been for Bert to make the payments himself. He could have refinanced his auto after divorcing Camille used the equity to payoff her debts and then have her pay him. He should undergo also ensured that all joint accounts with Camille had been closed to prevent additional charges. Julie should undergo continued her full time student status; not only to improve her go opportunities but also to delay the student loan repayment requirement. And there are obvious things Bert and Julie could have done such as buying used furniture whenever they had available cash instead of charging purchases for new furniture on their credit cards. Additionally they could have spent less on their wedding and honeymoon. Marriage and fit debts can indeed move bad credit desire a virus. Don't believe upon a break decree to separate you from bad credit.
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Related article:
http://xndzzabxw.blogspot.com/2007/08/joint-debt-loan-and-credit-card-bills.html
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