Marriage / Divorce / Joint Account FAQs

Why aren't my spouse's accounts displayed on my credit report?
The credit reporting agencies maintain individual credit files for each U.S. resident. They do not maintain combined files for spouses. Therefore, your personal credit report is separate and different from your spouse's. Joint credit accounts you have with your spouse will appear on both credit reports. Community Empower allows you to request a combined joint pull of you and your co-applicant’s credit analysis. The system will separately pull each credit file, and create a separate analysis for each.

 

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If my spouse had bad credit before we were married, will that affect my credit score?
If you hold a joint credit account, have co-signed a loan or have authorized use of another person's credit, these items could affect a score if they appear on your credit report. It's important that joint account holders or authorized users understand that their credit behavior does affect the other joint account holder or main account holder.

 

A credit account held solely in the name of your spouse, child or any other family member cannot impact your credit score. However, in community property states, all debt acquired during a marriage is considered a joint debt, regardless if the account is joint or in the name of an individual spouse.

 

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Does co-signing for a loan affect a credit score?
Absolutely. By cosigning, you are accepting full responsibility for the debt if the other person does not pay as agreed. A cosigned account will appear on both your credit history and the other person's. All loans and credit card accounts that appear on your credit report will impact credit scores.

 

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How does divorce affect a person's credit?
When you obtained credit, you and your spouse signed a contract agreeing to pay your bills. A divorce decree doesn't change that contract. When you divorce, each of you remains fully liable for your debts. There are several ways you can prevent credit obligations from making divorce more difficult - and reestablish your own distinct credit lines after divorce occurs. You may wish to consider the following:

  • Communicate with your ex-spouse. Make as clean a financial cut as possible.
  • Communicate with your creditors. Decide which credit belongs to whom, then ask each company and bank that extended you credit to transfer the debt to the name of the person who will be responsible.
  • During divorce negotiations, keep your joint bills current, even if you ultimately will have no responsibility for the debt. If you don't, your creditors could become more reluctant to release one party from joint liability.
  • Ask the credit grantor to remove your spouse's name as an authorized user or close the joint account to additional charges.
  • If your spouse runs up large amounts of debt, you should cancel as many of the accounts as possible. Inform all creditors, in writing, that you are not responsible for these debts. This may not prevent them from trying to collect, but it does show that you attempted to act responsibly.
  • Upon your divorce settlement, you and your ex-spouse might consider obtaining individual consolidation loans to cover your share of the joint bills. Pay off the joint bills with your individual loans and close all joint accounts. This helps ensure you'll be responsible only for those bills you agreed to pay. It also will help you establish or reestablish credit in your own name.

 

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I have a credit card account that was fraudulently used by a relative/friend. What should I do?
Contact the credit card companies as soon as possible and truthfully explain what has taken place. Ask what their policies are for unauthorized purchases, and work with their customer service department to reach a solution.

 

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