Clean Up Credit Report-Easy Solution

To Clean Up Credit Report with an easy solution is to begin with writing dispute letters challenging incorrect information in your credit report. First, obtain copies of your credit report from all three major credit reporting agencies. Second, review the reports in detail noting any information contained in the reports that you consider as being incorrect whether related to your personal profile or credit accounts. Third, challenge this information by writing dispute letters to the respective credit reporting agency.

One area that you may want to pay particular attention if you are married and share credit accounts with your spouse  is determining whether you are the owner, co-owner or authorized user of a credit account. Owner an co-owner’s are the individuals who sign the application and are approved for the credit card. As an owner or co-owner of an account the legal responsibility for repayment of the debt is basically the same.

 As the sole owner your are responsible for all charges on the account and the repayment of the debt. If you fail to repay, your credit scores will be affected and you are the individual who can be sued. If you are a co-owner the same applies as to responsibility for the charges and repayment. If you fail to repay or pay late or less than the minimum due both co-owners credit scores will be affected negatively. You both can be sued by the credit grantor either individually or jointly. If you are married it’s a double whammy in that both credit reports will be negatively impacted.

 If you are an authorize user of your spouse’s credit card you have no legal responsibility for the charges or repayment. An authorized user is one whom the owner of the account adds to the account in writing to the credit grantor and the credit grantor issues a separate card to the authorized user in their name. The owner will be responsible for repayment of all charges made by the authorized user.

Tip: If the owner spouse is credit challenged or having difficulty in making payments on the card I would advise having separate bank accounts. If you have a joint bank account as most married people do, when the creditor sues the owner of the account and obtains a judgment with the right to seize bank account funds, any monies deposited into the joint account by the authorized user spouse will be seized as well to pay the debt. Understanding that the authorized user can not be sued on the account since they never sign an application which of course includes the promise to repay. Therefore, if you have separate bank accounts only the funds in the owner’s account can be seized. From a budget standpoint divide up the household and other expenses and each person pays their share of expenses out of their separate bank account.