Often when two come together in matrimony, the question of money and credit will arise. While a husband and wife may love each other, they may not be a match with their credit scores. If one spouse has a significantly worse credit history, does it affect the other? While a couple joins in many ways, their credit history does not have to.
Credit reports are entirely individual and so are the credit scores. There is no such thing as a joint credit report or credit score. Even when a couple applies for a loan together, like a mortgage, their individual credit history is pulled for evaluation. There are no laws requiring spouses to have joint accounts, so you can keep your credit accounts separate.
Loans that are jointly held, like a mortgage or other large purchase, do equally affect both individuals’ credit histories. Nevertheless, your spouse’s past credit problems do not automatically become yours. While you do have the option to add your spouse onto your accounts, it is not required. Often this can be helpful when one person has little to no credit; by adding that spouse onto the other’s accounts… it is like an instant credit history.
Ideally, a marriage should contain a variety of credit accounts. Having joint accounts for large purchases and at least one joint credit card can bring unity to the couple’s credit history and marriage. It is also helpful to maintain a separate credit history with individual accounts as well. This balance will ensure the security of the couple and the individuals through any type of issue or hassle down the road.
Related Articles:
*The Importance of Honesty and Finances in Marriage
*Getting out of Debt and Living within a Budget
*Marriage Choking Points: Compulsive Spending