How Will My Boyfriends Bankruptcy And Credit Affect My Credit?

August 3, 2011 by  Filed under: Bankruptcy 

In this report you will discover how your boyfriend’s bankruptcy and credit will or will not affect your credit.

The answer to this really depends on your financial relationship. Here are a few situations that will help to further explain how your boyfriend’s bankruptcy can credit may or may not affect your credit.

Future Marriage
Finances would definitely be a topic of discussion before getting married if there has been a bankruptcy. How long has it been? Has he begun to reestablish his credit? Or will this continue to be an issue throughout your marriage? Learn the circumstances behind his bankruptcy.

Bankruptcies are tracked through social security numbers. If you are planning on getting married, the good news is that credit ratings are not transferable from one social security number to another. Therefore your credit will not be affected once you walk down the aisle. Just as his poor credit rating will not hurt you, your positive credit rating cannot help him either.

Cosigned Contracts
If you and your boyfriend are partners on any contract such as an automobile or cell phone and he defaults on these with the bankruptcy, you could be affected. In this case, each person that went into this type of financial agreement is responsible for the borrowed money. To avoid this situation damaging your credit, do not allow him to discharge any of these types of loans or contracts. Be sure to continue to pay these bills on time. If this is not done, then yes, it will affect your credit negatively.

Mortgage Loan
If there is a mortgage in both names and you are in arrears on the loan, this could impact your credit in a negative way. If the amount in arrears was included in the bankruptcy, this will show on your credit rating. If there were no arrears and a plan is made with the lender to continue making the mortgage payments as normal, you will want to be sure to adhere to that agreement to avoid damaging your credit.

Purchases in the Future
If you plan to purchase a home in the future, your boyfriend’s bankruptcy and credit will affect you. Lenders typically combine the two credit scores and take an average of these, creating a combined credit score. This will result in a higher interest rate and create more difficulty when trying to obtain a loan for a house. Any bankruptcy is a red flag to mortgage companies.

Reestablishing Credit
A bankruptcy will remain on your boyfriend’s credit report for 10 years. As soon as possible, he will want to get a secured credit card, make his payments on time to begin to reestablish his credit. He needs to regain the trust of lenders, by slowly building up his credit score.

By the way, do you want to learn more about how I show my clients to save money on their vehicles?

If so, download my free eBook here: How to Buy Smart so you’ll know if you are paying the right price for your vehicle.

Article Source:
http://EzineArticles.com/?expert=Mike_Reitz

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