How to keep credit history for a stay-at-home spouse
For a stay at home spouse, maintaining your credit history may seem like an afterthought, but it is important, even if one parent is unlikely to return to work. If for some reason you split up or the working spouse dies, their credit history goes with them.
It is always important to maintain a credit history, regardless of marital status. Life events can bring unforseen circumstances, such as applying for a mortgage without your spouse. It is essential to remain prepared, especially when it comes to finances. This article from Robb Engen illustrates how simple it is to keep a credit history active, even as a stay-at-home spouse.
Many banks offer low or no fee credit cards, so it may be wise to acquire one in your name only. Limit the use of the card as necessary for you, and make the regular payments to keep a positive credit history for yourself. Always remember that keeping an existing credit product is often easier than applying for one after years of not having a steady income.
Keep some bills in your own name, and ensure they are paid promptly and regularly. It only takes one missed payment to affect your credit score. Finally, if it works for you, keep a bank account in your name only. Merging your assets doesn't have to mean relinquishing financial independence.
Read the full article from Toronto Star's Moneyville here.