Page 12 - aruba-today-20221123

A12 BUSINESS
Wednesday 23 november 2022

Millennial Money: How stay-at-home

spouses can build credit

By SARA RATHNER of Nerd-
Wallet
Spouses share a lot, but
no matter your relation-
ship status, your credit
score belongs to you and
you alone. Even if you’re
100% supported financially
by your spouse or partner,
establishing and building
your own credit score is es-
sential.
It can benefit you both as
you navigate financial de-
cisions together. But should
you divorce or your spouse
pass away, having good or
excellent credit can help
you as you begin to make In this June 15, 2018, file photo, cash is fanned out from a wallet
financial decisions on your in North Andover, Mass.
own. Associated Press
Besides, maintaining some
money independence you both is still in good credit and debt, but there
can keep you both on shape because this can are so many things credit
equal footing in your rela- affect what loan terms, like can be used for.”
tionship. interest rates, you’d qualify Davis likens credit access
“A household’s financial for together. A lower credit to insurance it’s some-
dependence on one in- score can make borrowing thing that’s good to have,
come earner can foster un- money more expensive. whether or not you need it
healthy relationship control Your credit score also at the moment.
dynamics,” said Katherine comes into play when you WAYS TO BUILD CREDIT
Fox, a certified financial apply for a credit card in WITHOUT AN INCOME
planner, founder and advi- your own name, which you Besides applying for your
sor at Sunnybranch Wealth can do even if you don’t own credit card using your
in Portland, Oregon, in an earn an income. So long spouse’s income in your
email. as you’re 21 or older, you application, there are oth-
“Stay-at-home spouses can include your spouse’s er ways to build your credit.
who take steps to protect income on the card appli- You can become an
their credit score and fi- cation. authorized user on your
nancial literacy are do- Moreover, unexpectedly spouse’s credit card.
ing their part to maintain becoming single again is They’d be responsible for
a healthy money attitude the most difficult reason making payments, but if
and dynamic within their nonworking spouses need they pay on time each
relationship.” to build their credit. month and you both avoid
WHY YOUR CREDIT SCORE “Having a solid foundation charging more than 30% of
IS EQUALLY IMPORTANT will help you if you end up the credit limit, over time
Any time you and your alone and need capital this can build your credit
spouse apply for a joint to get started,” says Brit- score.
loan, like a mortgage, both tany Davis, a Memphis, Applying for loans under
of your credit scores get Tennessee-based accred- both of your names, like
evaluated by the lender. ited financial counselor an auto loan or mortgage,
Lenders may use the per- who is an associate finan- can also be helpful as on-
son’s score that falls on the cial planner for Brunch & time payments will be re-
lower end to determine Budget, a registered in- flected on both of your
your eligibility. Ideally, even vestment advisor. “I know credit reports.
the lowest score between some people are leery of “At the very least, stay-at-
home spouses should be
a joint account holder or
added to their partner’s
credit card to help them
build and maintain their
own credit score,” Fox says.
Be sure to also pay other
household bills on time, in-
cluding utility bills and rent
payments. In some cases,
those are also reported to
credit bureaus.q