Does Getting Married Affect My Credit Score?

What Happens to My Credit Score When I Get Married?

One of the most significant aspects of life that are bound to change when one gets married includes: You may pool money, purchase a property, or begin to address the issues of paying bills and debts together. All of these things affect your credit. Okay now let us look at exactly how marrying somebody impacts your credit score. First, let me tell you what you must learn.

Joint Credit Applications

If you and your spouse are applying for any type of loan, for example, a mortgage, auto loan, or even a credit card, their credit reporting bureau will pull out both of your credit reports and credit scores. They establish the credit limits and the rate of interest according to the one with the low score. Therefore, if your rating is good while your spouse’s credit rating is fair or bad, it will lower the terms of credit that you two will be offered.

While you may not be thinking of making joint credit applications shortly, it is crucial to remain informed of each other’s credit status. It can also cause issues down the road when, for example, both partners decide to purchase a house or a car.

Shared Debt Obligations

For example, you legally have to settle each other's debts after you are married. Marital assets such as your home, vehicle, or bank accounts are not shielded from creditors looking to pay back a debt your partner took on before marriage. Among other things, there include credit cards, medical expenses, college loans, and the like. Understanding that even if the obligation is carried in your spouse's name and only he/she is liable for helps you to realize that, should it go to collection, the debt might damage your credit score.

Before you get married, you should show your spouse all of your debts and responsibilities as well. This helps you to get a shared understanding of how to get it cleared. If agreed-upon payments are fulfilled, having debt combined does not have to compromise one's credit.

Authorized User Status

Using your spouse's credit card as an authorized user will also help you create a credit history. An essential aspect is that should you be an authorized user, the activity of the primary account holder on the card is recorded by the credit bureaus. Your credit will suffer if the card has not had a long, good history of regular payments.

Furthermore noteworthy is the fact that the above is equally valid inverted. Your credit score might also suffer if your partner exhibits poor credit card habits like late payments, charges, or even skipped payments. Anyone should never introduce accounts without first talking about credit standing in marriage.

Change of Name

It is quite common for people to decide to accept their partner’s last name after they get married. Although a rather exhilarating change, it does lead to some ambiguity as to your credit status. This is a result of discrepancies in the name used on your credit report and the name used while applying for credit.

To avoid these issues, it is wise to update the legal name of all the existing credit accounts in the report as soon as possible. Contact all the creditors, including the three credit reporting agencies – Equifax, Experian, and TransUnion. This also helps to maintain name consistency throughout one’s credit history.

Combined Credit Accounts

After you combine your finances, you may want to become each other’s referees or cosigners for the existing credit. But be careful when they transfer credit history as it’s better if the account remains open longer and has a positive history.

For instance, if you include your partner on a credit card that you have been using for 5 years, the credit history is adjusted to the date they joined. This can reduce your overall length of credit and slightly decrease your credit score, but not everything is as simple as it seems since your credit score has more to it than the length of credit. Determine whether it is wiser to have separate accounts instead.

Account Closures

When it comes to changes in financial behavior after the wedding, some people close their old credit cards and open new ones for both of them. However, be wise while doing this because it may reduce your credit utilization ratio and affect your score if you have limited credit.

To get the most out of it, it is advised to keep the first credit card you were issued, as the length of your credit history is very beneficial for your credit score. Before closing any old account, you need to assess it strictly. Also, open the joint accounts first before closing the individual ones.

Adding Positive History

The best thing that married couples can do to their credit is to ensure that they properly handle the joint accounts. Making payments on mortgages, auto loans, and credit cards on time each month develops a good credit history for both parties. Credit card balances are also key to improving scores; you should try to have low balances on your credit cards.

Being upfront about spending and paying off bills will go very far in rebuilding credit together in the future. Ensure that the couple checks the credit report at least once in a while and looks out for any problems that may worsen in the future.

It does become more complex to manage credit when you get into marriage and your partner already has accounts and liabilities. However, being transparent with each other, as well as making payments on time establishes and nurtures good credit for both of you. If you have more questions or concerns about how marriage may affect your financial situation in the future, it is always wise to seek the advice of a professional.

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