When You Get Married Does Your Credit Reflect On Your Spouse?

Nearly all, if not all married couples swear to love each other no matter what. They promise to stick with one another through the good times and bad times, in plenty and in poverty. Granted, while credit scores and credit histories may not ring in your mind at the start of your romance and your nuptials, they are forever tied, one way or another once you’re married.

But why would anyone consider the other party’s credit score when they’re getting married? After all, you are in love with the person. However, a simple survey will also show you how many new divorcees are out there. There are also thousands of individuals suffering from credit complications coming from their past marriages. Examine how marriage may affect both your credit reports and scores and protect yourself and your spouse from potential problems.

Effects of marriages on your credit score

Marrying someone doesn’t affect your credit score in any way –though it may after you say “I do”. Both of you will continue receiving separate credit reports on your individual credit history. This means that neither of you will receive credit information attributed to the other party. Banks scrutinizing credit scores for the both of you will receive separate scores for the each of you.

This principle also applies in the event of name changes to include the names of their respective partners. If your wife changes her name to yours, you’ll still receive separate credit scores and credit reports based on how each of you pays your individual bills. Any omissions as far as bill payment is concerned on related to your partner will only affect them. This also applies to your individual bill paying history including loans, mortgages, and other debts.

Credit risk factor in marriages

While the credit history of your spouse will not appear on your individual history, a number of things may happen in a marriage situation and have some level of influence on your credit history; possible even causing harm to your credit score and report.

One scenario that may occur is in the event you apply for joint loans. Banks will look at both your individual credit scores before they will make a decision to loan to the two of you. If one of you has a bad credit score and history, this is the scenario in which it will pinch the most. Depending on the lender, you may be denied credit, or be charged a higher interest rate for the joint loan. In the event the loan is approved, payment or default statements will appear on both your credit reports.

Having joint accounts and the subsequent joint credit cards will result in the credit history for that particular card appearing on the both spouses credit report. This may be one of the riskiest points where your spouse’s financial behaviors may affect your credit including your score and your report.

How to protect your credit in a marriage

From the above mentioned scenarios, the only sure way to protect your credit score and history in a marriage is to always keep your finances, loans, and accounts separate. However, with the closeness marriages bring, separating everything, including finances also has its negative effects. Credit managing tips for newlyweds include limiting your expenses to necessities, consistently paying bills (including joint loans and accounts) and conducting due diligence on your partner’s financial discipline can help. The other credit managing tips for newlyweds are ensuring that you play an active role in your spouse’s financial management, especially where joint accounts are concerned.

The importance of credit monitoring cannot be over emphasized enough in relation to protecting your credit. Monitoring your credit regularly can save your credit in the long run, especially if you operate joint accounts where just one of you is the overall custodian.

Generally, marriage can affect or not affect your credit report and score depending on how you decide to manage your finances as a couple. Of course there are a number of risks which stem from sharing loans and joint accounts in which you will have to monitor in order to have personal control over the outcome. Married couples should all know the importance of credit monitoring as it can help them maintain good credit scores of their own. Couples should also actively manage their finances together as this can truly help them avoid scenarios which hurt their joint credit.

Joy Mali is an active blogger who is fond of writing articles on Finance and educating people to monitor their credit report on regular basis to minimize the risk of fraud. Follow her on Twitter to know more on how marriage can affect your credit.