One of the monumental tasks I had to face after my financially devastating divorce was repairing and improving my credit score. Not that it was a number any one would have been proud of before the divorce, but it did manage to occasionally qualify us for things we definitely couldn't live without, like a 72? plasma television at 29% interest and a new hunting dog.
When you apply for credit and you are sitting there with your fingers crossed, hoping for a positive outcome, your credit score is not where it needs to be. I'm sure most folks probably realize this. What they may not be aware of however, is a low credit score is a huge risk factor for divorce.
In fact, it's probably one of the more reliable predictors of divorce available and one that I use regularly in my family counseling practice.
Most are taken aback when I ask them for their credit score and thank it has something to do with their ability to pay for my services. When I explain to them that it is a consideration I must make in evaluating and developing an effective strategy to try and save their marriage, most just sit there scratching their head.
Here's the thing about trying to help people. A lot of them will actually own up to the poor choices they have made throughout their marriage but will turn around and not tell the truth about their financial situation.
I would imagine this to be a pride thing, but financial difficulty is directly responsible for at least half of all failed marriages and I need to know where I stand in order to develop a plan to help these well meaning, financially strapped liars.
A credit report paints a pretty clear picture as to what is going on in a marriage and I can't understand why other counselors do not use it. Oh yeah, most counselors think they know everything!
Credit reports do not lie and credit scores are accurate indicators of the overall health of a marriage'It?s a simple as that.
Yes, yes, yes there a lot of miserable rich folks out there with wonderful credit and a lousy marriage. I'm telling you that financial difficulty is responsible for half of all failed marriages, not the whole lot. It's just one of the factors that I take into consideration.
Now, if I find that these good folks have a poor credit score, we immediately lay out a plan to improve upon it. NOT so they can get into further debt but so they can get a lower interest consolidation loan and began to eat things other than peanut butter and jelly sandwiches again.
I would urge anyone with a questionable credit score to do the same. Unfortunately, I can do little to increase a couple's income other than waive my counseling fee?uhh, did I just say that out loud?
Good, I didn't think so. Anyway, as I was saying, little can be done to increase a client's income, but we can certainly get control of spending. The higher your credit score, the better interest rate you can get on consolidation loans and mortgage refinance, and thus a recognized decrease in spending is achieved and there's more money for everyone.
My unorthodox methods of counseling, including asking for people's credit scores, are what make me so successful as a marriage counselor.
Another unique aspect of my counseling is the fact that I base it on biblical truths and principles. The U.S. government frowns on the religion this country was founded upon and would never support such a concept, so I'm seen as a bit of a snake oil salesman, but lucky for me, the government cannot regulate me and I can actually help people unlike other licensed therapist with their arms tied behind their backs by bureaucratic red tap.
If you are in a troubled marriage and want to do something that can have a positive and lasting impact, improve your credit score. You can download my 66 page credit repair book absolutely free at my website. This is the same book countless couples, as well as myself, used to improve their credit score and their marriages.
When shopping for a home loan, your credit score is the first and also the most important factor that is considered by lenders when evaluating a loan application. Credit score requirements for many types of mortgages have increased substantially over the last year. And having a credit score that's less than excellent can lead to a higher interest rate for many types of loans, not just mortgages.
So what happens if you find yourself in a situation where your credit score is either too low to qualify for a loan or is too low to get the rate that you would like? One option is to see if your mortgage lender has the ability to do a "rapid rescore". The rapid rescoring process is a special service offered by some lenders that allows them to circumvent the normal 30 to 60 day waiting period that it takes to update information with the credit bureaus. To do this, lenders must have very specific documentation from the creditor that states specifically what information is to be corrected. Here are some common examples of situations that may qualify for a rapid rescore:
1 Change in status of an account, such as paid as agreed. This is common for collection accounts.
2 Change in the balance of an account, such as a credit card, that may raise the score.
3 Deletion of derogatory information, such as late payments.
4 Deletion of accounts that were reported in error, such as instances of fraud, identity theft or a computer error.
As stated before, solid documentation from the creditor is required in order to perform the rapid rescore process. Receipts, cancelled checks and dispute letters do not qualify. All information submitted is usually verified by the credit bureaus as well, so false or unverifiable information will not be considered.
Rapid rescoring is also quite expensive, so most lenders will not use the service unless they are very sure the result will increase the score to an acceptable level. Many lenders also have access to tools such as a Credit Score Analyzer or a Credit "What-If" Simulator, which may show the expected result of making changes to accounts.
Once the documentation is forwarded to the credit bureaus, the process normally takes about five business days to complete. Once the bureaus have updated the information, the lender is contacted to repull a new credit report. If any additional information has changed on any other accounts in between the time the initial and final credit report was pulled, this may affect the total outcome of the credit score. For this reason, rapid rescores do not always produce the intended result. But if there's no other solution and you're pressed for time, your only option may be a rapid rescore
Both Myla Madson & John Rasor are contributors for EditorialToday. The above articles have been edited for relevancy and timeliness. All write-ups, reviews, tips and guides published by EditorialToday.com and its partners or affiliates are for informational purposes only. They should not be used for any legal or any other type of advice. We do not endorse any author, contributor, writer or article posted by our team.
Myla Madson has sinced written about articles on various topics from Home, My Ex and Baby Shower. Get your complimentary copy of Myla Madson's Complete Guide to Improving Your Credit Score at