Money Management Tips for Newlyweds

Here are some money management tips for newlyweds courtesy of ARA Content:

Winter weddings are magical. The bride’s gown reflecting the color of fresh snow, the bridesmaids dressed in shimmering velvet with satin trim, and the groom and groomsmen handsome in their black tuxedos.

To get to this point, the bride and groom will spend months working out every tiny detail to create their memorable day — color scheme, music, food for the reception, and gifts for the wedding party. During those months, the happy couple is likely to spend quite a sum of money — $25,000 or more for some.

But chances are that even in the midst of all the budgeting, check-writing and credit card swiping, the bride and groom will never discuss their individual approaches to spending and saving money or their current financial situation. As awkward as it might be, this is a talk every couple should have as soon as possible.

As you start your married life, you probably have specific financial goals. Some of these may involve the purchase of big-ticket items such as a car, new furniture or major appliances. You also may want to move, either to a bigger apartment or your own home. Because most lenders rely on credit scores during their evaluation of a credit application, your credit history will affect your ability to realize all these goals. Now is the time for both you and your future spouse to request copies of your credit reports and scores and set aside some time to review them together to help ensure your future financial health.

Credit scoring is almost always used when you apply for a credit card, auto loan, auto insurance, a mortgage, or an apartment lease. It is sometimes even used by prospective employers. “Credit scoring is a way for lenders to evaluate a person’s credit worthiness based on their demonstrated ability to manage credit and debt as reflected in their credit report. Scoring models compare the past credit performance for consumers with similar credit reports to predict who is most likely to repay a debt,” explains Maxine Sweet, vice president of consumer education for Experian. “In most models, a higher number indicates a lower credit risk. Having your credit report scored for your personal review is an important tool for helping you understand what you are doing right in managing your credit and what you can do to improve your credit habits and reduce your risk.”

Credit Tips for Newlyweds

Taking a few minutes to check your credit report and credit score gives you the knowledge you need to plan for your future together. As you merge your lives and your finances, here are a few things to keep in mind:

• Notify creditors if you change your name. They will update your name with the credit reporting agencies when they next report your account information.

• Share your credit reports with each other. If either you or your spouse-to-be has had trouble getting credit alone, try setting up a joint account to capitalize on your shared income and the other person's stronger history. The joint account will be reported in each name so each credit history will benefit from a positive account paid as agreed.

• Check your credit scores. According to Experian’s National Score Index (www.NationalScoreIndex.com), the national average credit score is 675; for men the average is 673, for women 680. NationalScoreIndex.com also lets you compare your credit score to the average in your state and local area.

• If you discover that your credit history is not as good as you would like, you can take steps, such as paying your bills on time or paying down debt, to make it less risky.

• Keep in mind that your credit report is always changing based on information provided by creditors. It is important to check your credit report regularly, so you can stay on top of changes before they impact your credit rating. Consider signing up for a credit monitoring product, such as Experian’s Triple Alert (www.TripleAlert.com), which provides daily monitoring of all three of your national credit reports and sends email alerts that report key changes.

These simple steps will ensure that your credit history will speak in your favor when you need it.

Learn more about credit at www.NationalScoreIndex.com.

Comments

[Blaine Moore (First Time Homeowner)]

My wife and started going through the process of buying a house before getting engaged, and bought it before getting married, so we had already gone through all the intimate sharing of details stuff.