Many people have misconceptions about how getting married affects your credit. Let’s clear up some common myths!
Myth 1: Your Credit Scores Merge When You Marry
Fact: Your credit history remains separate from your spouse’s, even after marriage. Your credit score is based on your own individual financial history.
Myth 2: All Your Accounts Become Joint After Marriage
Fact: Accounts you had before marriage remain separate unless you specifically decide to make them joint. Joint accounts will appear on both credit reports.
Myth 3: One Partner’s Bad Credit Affects the Other’s
Fact: Your spouse’s credit history doesn’t directly impact yours unless you have joint accounts or co-sign on loans together.
Myth 4: Marriage Automatically Improves Your Credit
Fact: Getting married doesn’t magically boost your credit score. Your credit is based on your individual financial behavior, not your marital status.
Myth 5: You Must Have Joint Finances to Buy a House
Fact: While joint finances can make buying a house easier, it’s not mandatory. You can still qualify for a mortgage with separate finances if your combined income meets the lender’s requirements.
Myth 6: Changing Your Name Changes Your Credit
Fact: Changing your name after marriage won’t affect your credit history. Credit bureaus have systems to track name changes and maintain your credit information.
Important Considerations:
- Joint Accounts: Opening joint accounts can benefit both partners, but it also means you’re responsible for each other’s debts.
- Authorized Users: Adding a spouse as an authorized user on your credit card can help build their credit, but it doesn’t affect your score. They don’t necessarily need to use the credit card and they are also not legally responsible for the charges.
- Separate Finances: Maintaining separate finances can protect you in case of divorce or financial hardship.
You can read more at 3 reasons couples should be on the same page about credit. | TransUnion and Sharing a Credit Card With a Spouse? Avoid These Pitfalls – NerdWallet
By understanding these myths and facts, you can make informed decisions about your finances and credit as a couple.
If you’re dealing with high interest debt payments as well, see what you can save with Parachute’s Debt Management Plan https://parachutecreditcounseling.org/dmp-calculator/
Would you like to meet one-on-one with one of our Financial Counselors to talk specifically about your credit? Check out our Credit Report Review Session at https://parachutecreditcounseling.org/services/credit-budget-counseling/#credit-report-review or call 716-712-2060.
