How To Repair A Spouse's Credit Report

Knowing how to repair a credit report is essential when you get married and inherit a bad credit report from your spouse. Any loan you apply for together, including mortgage and auto loans, will take into account the credit of both you and your spouse. Instead of fighting over money, as many married couples do, it is best to take proactive steps to resolve the issue.

Make a Personal Loan

If you are comfortable giving your personal funds to pay off your spouse's pre-existing debt, this can help immediately boost the credit score. While entering loan modification and consolidation can hurt a credit score, paying down debt with personal will improve the score. Some couple opt to treat this as a loan where one spouse repays the other, often on no interest. Other couples treat this as shared debt and shared income, meaning there will be no repayment schedule. 

Cosign on Loans

Once existing debt is paid off, you can assist your spouse in gaining some new loans to help repair credit scores. Acting as the cosigner on the account will allow for better rates and terms, but slow down the positive affect any new loan will have on a credit score. If you have patience in the process, though, you will notice difference over time.



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