credit report - Can an Ex Hurt Your Credit?

There are a lot of people out there that don't believe that a spouse's credit can affect theirs. But it can. A loan applicant may look great -- good income, history of savings and strong employment -- but the credit report looks a little off. There are some late pays, even a charge off, on a few accounts. A little code indicates that the applicant's spouse has the credit problem, not the applicant. This often happens when a couple is divorced. Even though the divorce decree clearly states who is responsible for which debt, including credit cards, mortgages, debits and defaluts. Yet these items are still showing up on the applicant's credit report. You, the innocent party, may still be viewed as a responsible party. If you have a situation where you were jointly obligated with someone else to repay on a car loan, a boat or a credit card, you need to do some things before you go in to apply for a mortgage. You have to understand that a divorce decree will do little to remove any joint debt from your credit history. You have to take care of it yourself. The first step is to obtain your credit report to see if your ex is actually hurting your credit rating or not. Even though you make your monthly payments on time, if any joint debt is reported as a derogatory account, your credit rating and ability to obtain a mortgage will seriously be affected -- especially if you wait a long time to change the information. If you find that your credit rating is harmed by someone in your past, you need to be prepared to document everything for your lender. For example, you will need to provide your divorce decree that shows who is responsible for what. If you have agreements from your ex's credit companies releasing you as a responsible party, be prepared with those as well. Sometimes joint accounts can create other problems. For example, your ex agreed to keep the house, take title and make the mortgage payment. Unless the mortgage is refinanced into the single owner's name, you are probably still responsible for paying the mortgage -- regardless of what your divorce decree states. If you see that a mortgage is showing up as active on your credit report in your name, you may find that you aren't able to secure another mortgage. Why? Your credit report shows that you are already responsible for a mortgage payment. You will need your divorce decree in this case. If you can get copies of canceled checks from your ex showing timely payments to the mortgage company for the past 12 months, this will show that you aren't the one making the payments. But the canceled checks will only help you if the mortgage payments are on time. If there are several late payments on the mortgage, your ex may have to refinance the old debt entirely before a lender will give you a new mortgage. Don't be surprised if your old agreements aren't being followed. Before you go to apply for a mortgage loan, take the time to review your credit report. It will save you a lot of trouble later on. Martin Lukac, represents http://www.RateEmpire.com, a finance web-company specializing in real estate/mortgage market. We specialize in daily updates, rate predictions, mortgage rates and more. Find low home loan mortgage interest rates from hundreds of mortgage companies! Visit http://www.RateEmpire.com today. Article Source:http://EzineArticles.com/?expert=Martin_Lukac credit report - Free FICO Score Reports If you are in the market to buy a new car or a house, or even to rent property, your FICO score will be checked. The main benefit of credit scoring, lenders argue, is that they can make decisions faster by using automated systems. You may now ask, "What is a FICO score?" A FICO score is a scoring method developed by the Fair Isaac Corp. to aid the three major credit bureaus, namely, Equifax, Experian, and Trans Union. It is a computer model that assesses your credit worthiness against several other customers. In the past, when you applied for a credit or loan, you were in complete darkness about your credit score. The lender would request the score from one or more credit bureaus and, if you wanted to access such information, you were required to a certain amount of fee. At the present, you can access your credit reports without any charge. You can also have your credit score report send to you via email or post mail free of cost, at a regular time period, such as once monthly. In the past, if there were too many inquiries made on your credit, your credit scores use to go down. However, when you access your credit report now, it doesn't affect your credit score. Scores also vary based on current credit activity. Since credit bureaus only calculate your score at the lender's request, it will be based on the information in your file at that particular credit bureau, at that particular time only. There are also many website and companies that now help customers understand and get their credit reports for free. They guide the customer through the process and teach them how to access such information. You would have seen the popular television advertisement of "Freecreditreport.com" You also see a lot of banner advertisements on the web about the subject.