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How Will Marriage Affect Your Credit Score?

Marriage is about becoming a team.

You promise to share your entire life with your significant other when you tie the knot.

You share a house, bank accounts and sometimes you might even share your clothes.

But there’s one thing that you will definitely not be sharing. And that’s your credit score!

What if You Marry Someone with a Bad Credit Score?

There is a myth that goes around which states that marrying someone with a bad credit score will harm yours.

Well, this truly is a myth!

As we mentioned earlier, you cannot under present credit score process have a shared credit score.

Same goes for your credit history. Your spouse’s credit history will not be combined with your credit history upon tying the knot.

And no, opening a joint credit account with your dearly loved one will lower or immediately improve your credit score by itself, although it could lower overall credit utilization which may boost your score.

So what does it matter if your significant other has a bad credit score? It won’t make him or her love you any less.

Anyway, we’re pretty sure that the credit score is one of the last things you think about when you select your life partner.

That being said, make sure you understand that partners views on money and spending as those aspects are critical when it comes to securing the right financial future as a unit.

How Bad is Having a Bad Credit Score in a Marriage?

Imagine that you have a bad credit score and your spouse has maintained an excellent score over the years.

If both of you apply for a joint loan, lenders will consider both your credit scores together.

Just because your spouse has a good credit score, there is no guarantee that your loan application will be approved.

Even if it’s approved, the interest rate may  be adjusted upwards to take into account the higher risk of the poor credit spouse.

But if your spouse applies for the same loan separately, the interest rate will be less than the interest rate of the loan you applied as co-borrowers.

Therefore, it is always wise to improve your credit score before applying for a joint loan to avoid being subjected to ridiculously high-interest rates.

One way of improving your credit score is getting added as an authorized user on your spouse’s credit card.

Now isn’t it better if the spouse with the higher credit score applied for the loan alone?

It is an option. But often, two incomes are required to get approved for larger loans, especially for a home loan, to show capacity of both incomes to cover mortgage payments.


How Can You Avoid Hurting Your Credit Scores After Marriage?

It is important that both you and your spouse maintain good credit behaviors to steer clear of possible financial crises.

Any financial activity that you do jointly will have a considerable impact on your credit scores.

If you have a joint loan, and payments are not made before the due dates, both your credit scores will suffer. This could have a serious impact on your family’s financial future.

Moreover, it will be a good choice if the spouse with the higher credit score takes on this responsibility as he or she has typically demonstrated  good credit behavior such as paying bills on time. One of the simplest ways to handle this is to set up auto payments for fixed payment expenses.

Even if you decide to keep your financial transactions for yourself, working together as partners to improve your marriage life will certainly affect your personal finances.

Therefore, it is important to work together and encourage positive credit behavior within your relationship so that you can look forward to a bright and breezy financial future.

If you like what you have read, please share with your friends and family and let’s keep empowering everyone to take control of their credit and finances.

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