Getting Married And Joining Finances? Should You Really Merge All Accounts?

Insurance Blog

When you get married you want to assume that you're starting out a brand new life together, but the truth is that problems from the past can cause financial issues in your marital future. You shouldn't combine all finances if it doesn't make sense, and there are some accounts that are best to leave separate. You may be recognized as a marital couple, but you'll want to obtain the following things independently if it helps you save money.

Credit Cards

Does your spouse have a bad track record with credit cards, a high balance on a card, or a poor credit rating? If so, it may be best to avoid getting a joint credit card with both of your names on it. Instead, you'll want to get separate cards or only have the person with the highest credit rating who can get the lowest interest rate get approved. This way you can save money when you have to borrow or pay for items with the card.

Auto Insurance

If one of you has a great driving record and the other has a bad driving history, you both will have to pay for the person with poor history if you are paying for both people on one auto insurance policy. Instead, shop around so the person with the clean history can get the best auto insurance rate, and then have the person with the less than perfect record get their policy. Once the blemishes come off the driving record, it may make sense to get a joint policy. Also, if one person gets a ticket or in an accident after the policy is taken out, you aren't paying for an increase on coverage for both vehicles and people.

Mortgage

Getting approved for a mortgage can be very time consuming and the requirements are high. You need to have a steady employment history, high credit score, and good track record paying a lease or rent in your credit history. If one of you can get approved but the other person isn't qualified, only put one person on the mortgage but put both on the title of the property.

Talking about finances and credit scores before you get married and before you try to create joint bills is ideal. When you go to get these accounts together, make sure it is the best decision for your own credit and for your checking account. 

For more information, contact a professional in your area or visit a website like http://www.village-insurance.com.

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25 May 2016

Understanding Insurance Policies

When I got married, I knew that there were a few things that I needed to learn about the way the world worked. For starters, I had to figure out how insurance worked since I wanted to make the most of my life without worrying about money. I started focusing on the policies that I had in place and gradually moved towards acquiring new life insurance and the like. Having each of these coverages helped give both me and my spouse peace of mind. We both knew if something happened to me that the other would be okay. Check out this blog to learn more about insurance needs.