HOW YOU CAN HELP YOUR SPOUSE

If your spouse’s debts and credit score problems are impacting your family, you must try to control their debt use and repair their credit score.

The first step here is to get a copy of your credit report. Credit rating agencies have been mandated to provide customers one free credit report every year. Additionally, you can also avail unlimited free reports on third party websites. With the report in hand, you can start examining the problems in your credit history — incorrect details, instances of delayed payments, high credit usage, or anything that may be hurting your credit score.

If your spouse’s score is low due to missed EMIs, you must start putting a money management plan in place which allows you to get back on track with your loan payment. Failure to repay one loan would be detrimental to your future loan needs, as loan providers can instantly access your credit report during their evaluation.

If unchecked credit card usage is a problem, you must put measures in place to restrict your credit card use. Ideally, you must restrict your credit card use to 20-30 per cent of your spending limit. This, too, must be settled in full and on time every month. Do not opt for the minimum payment route, and use your credit card only when you absolutely need it. At all other times, rely on your debit card, netbanking, UPI, and cash.

If the score is low due to incorrect credit details, you must report and escalate the matter with the credit rating agency and the lending institution where you took the loan from. Lastly, you could combine your incomes to help clear existing loan balances. Doing this would get you out of debt and help improve your credit score.