It is the season of marriages. Wedding nuptials have long been considered as a ceremonious institution bringing together two likeminded individuals who wants to spend the rest of their lives together. However, in today’s fast changing lifestyle, marriage has also turned out to be a financial institution. It may sound a little weird, but it is very much advisable by financial pundits that before you commit yourself to matrimony, ask your partner about his or hers financial positions so that you are not disillusioned and have a clear picture ahead of you. This is to ensure that both of you are credit healthy and get your life rolling together.
With the Indian economy grabbing a center stage on the global front, things like a good credit score and such financial terminologies are garnering importance in our day to day lives. A credit score is basically a thorough report that reflects how much credit worthy an individual is. In India, there are credit bureaus like Cibil and Equifax who collate the data from creditors, lenders and utilities, debt collection agencies that an individual has had a relationship or experience with. A credit score starts from 300 to 900 points and anywhere from 750 to 900 points is considered as decent to excellent.
Now coming to marriage, the question looms large in the horizon as to whether or not the Cibil credit report will affect your individual score or not. Though it is taken for granted that after marriage the couple shares everything, it might not necessarily include the credit report. Both of you will continue to have your own Cibil report indicating your credit history without any influence of your partner’s score. Even if your husband or wife has an incredible Cibil score, it shall in no way make your score reach greater heights. Same is the case with a bad credit score.
However, if you both want to apply for a home loan, car loan or even a credit card, the bank will scrutinize both your credit scores. If both the credit reports are satisfactory, chances are very high that the loan or card will get easily and quickly approved. Moreover, you might also be lucky enough to pay a lesser rate of interest. On the other hand, if both the credit scores are on the lower side of the score card, then chances are slim that your loan will be approved, let alone lower rate of interest.
Also, you have to keep in mind that in case of holding joint accounts, both the husband and the wife is responsible for monthly loan repayments as well as payments on credit cards. In case both the scores are lopsided, you two will have to sit down and chalk out a plan as to whether you want to do it jointly or get rid of this plan entirely. And if you want to stick to it, then it will increase the score of the one with a bad credit rating which will help in the long run. However, if the healthy credit bearer applies for a loan, then interest rates will substantially come down.
All said and done, the bottom line is to see each other through during good times and worse as you had promised while taking your marriage vows. And this essentially includes finances – because money matters! A credit health company that has provided valuable and customized service to its customers is www.creditsudhaar.com
and can be seen as a viable option to improve your credit score.
The author is Co-Founder, Credit Sudhaar