Will Marrying Someone With a Lower Credit Score Hurt Your Credit?

Today’s topic is whether marrying someone with a lower credit score hurts your credit.

Darryl in Florida e-mailed me with this question:

“If I marry someone with a very poor credit history and mine is very good, will it change my credit rating?”

Thanks for the question, Darryl.

So what happens if you marry someone with a lower credit score? Does your credit report mix and mingle with theirs and give birth to a new report that contains your and your spouse’s best and worst credit traits? Will your credit score go down if you marry them? Will their credit score go up? What happens?

How a Spouse’s Credit Score Affects You

If the woman or man of your dreams has a significantly lower credit score than yours, there’s no need to panic! You don’t necessarily need to call off the wedding and it won’t necessarily affect your score.

Each person has his or her own separate credit record and credit bureaus don’t mix two credit histories together when people get married. However, if you apply for a loan together with your spouse, you may find it harder to get approved because of your spouse’s lower credit score. And if it’s a big loan, such as a mortgage, and you decide to apply for it alone so that your spouse’s credit history isn’t considered, you may discover that you can’t qualify for it on just one income.

Have ‘the Talk’ About Credit History and Finances

Before getting married, it’s really important to talk about finances and understand your significant other’s credit history and attitudes about money. Agreeing on your financial goals will help keep your finances and your relationship on solid ground when you’re married.

And if you don’t know the credit history of your spouse-to-be, ask them! If they have bad credit, find out why. Is it due to an isolated problem in the past, such as a period of unemployment or illness, or is it an ongoing issue? If it’s a past problem, their credit score will improve with time. If it’s a current and ongoing problem, well now, that’s a bigger issue to resolve.

Should You Have a Joint Account If Your Spouse Has Bad Credit?

The payment history for a loan or credit card you and your spouse have jointly will be reported on both of your credit reports. So if your spouse doesn’t make timely payments on accounts you own together, it will hurt your credit score too.

If your spouse has a significantly lower credit score than yours and you’re not sure whether the cause was just a temporary and past blip, one solution would be for you and your spouse to keep your accounts separate and apply for new credit separately, at least until your spouse’s credit history gets better. 

Remember, the most important thing you and your spouse can do maintain or improve your individual credit scores is to pay your bills on time.

For more tips on how to protect and improve your credit score, check out Episode 5 and Episode 164 of Money Girl’s Quick and Dirty Tips for a Richer Life.  I also have a handy little Quick Tip about how long good or bad credit stays on your credit report, so be sure to check that out as well.

So here’s wishing you healthy credit and happy relationships!

Administrative

And now it’s time for this week’s book giveaway. Today, I’m giving away two copies of The Only Investment Guide You’ll Ever Need by Andrew Tobias. This book explains the fundamentals of creating wealth and successfully investing for the future. This week’s winners are Erin P. and Kelly S. They were automatically entered in the book giveaway when they sent me an e-mail. Congratulations and be sure to check your e-mail for instructions!

As always, everyone’s situation is different, so be sure to consult a tax or financial advisor before making important financial decisions. This podcast is for educational purposes only and is not intended to be a substitute for seeking personalized, professional advice.

Cha-ching! That’s all for now, courtesy of Money Girl, your guide to a richer life.

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