Overall debt and marriage

[EaglesFan2006]

How do creditors perceive overall debt for married couples? My wife has poor credit, so a majority of CC debt falls in my name, as well as out auto loan. I have good util and no negative payment history, but I sometimes worry about how a high debt balance looks, esp this time of year. Is that ever considered before a creditor determines that your debt is too high? I'm more or less taking about your existing creditors, not new accounts.

[EaglesFan2006]

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@EaglesFan2006 wrote:
How do creditors perceive overall debt for married couples? My wife has poor credit, so a majority of CC debt falls in my name, as well as out auto loan. I have good util and no negative payment history, but I sometimes worry about how a high debt balance looks, esp this time of year. Is that ever considered before a creditor determines that your debt is too high? I'm more or less taking about your existing creditors, not new accounts.

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Just curious if anyone had any thoughts on this...thanks!

[Rikku]

My understanding is that unless it is a joint account (in which both incomes and total debt will be considered, as it falls under both names), lenders don't care whether you're married or not. They will look at the account holder's income and debt level. In terms of applying for new credit, I'd imagine that you'll eventually hit a limit, based on your income, at which lenders do not want to issue you more credit. In terms of AA by a CCC, you'll need to look at your risk factors - but as far as I know, it doesn't matter if you're carrying the debt for two people. If you're the account holder, they look at your info.

[Cprman]

Im confused how you have good util but high CC debt that doesn't make sense. Regardless creditors only look at who's applying for the credit. I bought a car but didn't put my wife on the loan, they only pulled my credit. We bought a house together, they pulled both our credit.

As an aside a good way to help your wife's credit is to add her as an authorized user to some low util cards with longer age. Did this for my wife now her scores are through the roof

[starry1]

He said he has good util now but that it gets high during the holidays.