Do You Know Your Credit History?
Everyone knows it’s important to have a good credit score, but a lot of people couldn’t tell you what their score is, or how far back their credit history reaches.
That’s a problem for a few reasons, but here’s the main one.
If you don’t know your credit history, you don’t know what’s been documented about your financial behavior. The flip side of that, and just as important, you don’t know what isn’t documented either.
Let’s say you’re in a marriage where the credit cards are in your spouse’s name. Maybe you’re an authorized user, and you’re the one who makes sure payments get submitted on time. Let’s say that goes on for decades and then your spouse passes away. When that happens, the credit cards could get closed out, and your history could be gone with it. Because if that credit card company doesn’t report your activity, it won’t exist to the institutions that decide your credit score.
It can get more challenging from there.
Without an established credit history, getting a lease, mortgage, buying a car, or any other scenario where you need a loan becomes harder to navigate. And applying for a credit card at that point could be harder than if you tried earlier in life. By the time most people are widowed, they’re often on a fixed income, and are less likely to engage in the activities that would build credit long term.
For these reasons, we encourage everyone, regardless of their status in life, to be conscious of their credit score and what’s in their history. Sustaining minor habits long term, like having credit card payments be submitted on time, in your name, could be the difference between having some financial stability if your spouse passes and having unnecessary challenges during the most difficult days of your life.
Investment products and services are offered through Wells Fargo Advisors Financial Network, LLC (WFAFN), Member SIPC. Laurel Financial Group is a separate entity from WFAFN.
This material is intended for informational and educational purposes only and should not be construed as investment advice, a solicitation, or a recommendation to buy or sell any security or investment product. Please contact your financial professional for more information specific to your situation.
That’s a problem for a few reasons, but here’s the main one.
If you don’t know your credit history, you don’t know what’s been documented about your financial behavior. The flip side of that, and just as important, you don’t know what isn’t documented either.
Let’s say you’re in a marriage where the credit cards are in your spouse’s name. Maybe you’re an authorized user, and you’re the one who makes sure payments get submitted on time. Let’s say that goes on for decades and then your spouse passes away. When that happens, the credit cards could get closed out, and your history could be gone with it. Because if that credit card company doesn’t report your activity, it won’t exist to the institutions that decide your credit score.
It can get more challenging from there.
Without an established credit history, getting a lease, mortgage, buying a car, or any other scenario where you need a loan becomes harder to navigate. And applying for a credit card at that point could be harder than if you tried earlier in life. By the time most people are widowed, they’re often on a fixed income, and are less likely to engage in the activities that would build credit long term.
For these reasons, we encourage everyone, regardless of their status in life, to be conscious of their credit score and what’s in their history. Sustaining minor habits long term, like having credit card payments be submitted on time, in your name, could be the difference between having some financial stability if your spouse passes and having unnecessary challenges during the most difficult days of your life.
Investment products and services are offered through Wells Fargo Advisors Financial Network, LLC (WFAFN), Member SIPC. Laurel Financial Group is a separate entity from WFAFN.
This material is intended for informational and educational purposes only and should not be construed as investment advice, a solicitation, or a recommendation to buy or sell any security or investment product. Please contact your financial professional for more information specific to your situation.