When you get married, a lot of things change. It means blending your life with another person’s. You’ll be sharing a home – if you weren’t already – and possibly combining your finances as well. It’s a happy time but it can also be one that’s a bit stressful.
One of the most common questions we get at Addition Financial is this:
“What happens to your credit score when you get married?”
That’s a great question to ask – and you should be thinking about all the ways that marriage will change your life.
When it comes to your credit score, there are a lot of myths and misunderstandings related to marriage. Here’s what you need to know.
There are a lot of misconceptions about what happens to your credit score when you get married. Here are some of the most common ones – and the real scoop about what’s behind them.
The takeaway from these myths is that there really isn’t very much that getting married can do to change your credit score. If you’re someone who’s got a long history of prompt payments and responsibility, it’s not going to vanish when you say, “I do.”
We’ve dispelled some myths, but are there any ways that your credit score can be impacted by marriage?
The short answer is yes. Here are some things to consider:
It’s best to be honest with each other about your credit scores and how they might impact your life together. A low credit score doesn’t have to mean that you’ll end up in financial trouble, but it’s not something you want to blindside your spouse with, either.
If you’re worried about your spouse’s spending habits and credit score, there are a few precautionary measures you can take.
The first is to maintain separate accounts. While your score should not be impacted by your spouse’s score or credit history, keeping separate accounts may make you feel better about your finances. You can also open a joint account for shared expenses and each transfer money into it monthly.
The second thing you may want to consider is having the spouse with the higher credit score apply for credit for big purchases alone. That’s not an option with a mortgage, since your combined debt-to-income ratio is one of the deciding factors to quality.
Of course, another option is that the person with the higher score may be able to help the person with the lower score. A joint credit card that’s paid promptly every month can improve your credit score if you’ve struggled in the past – and pave the way for buying a home in the future.
The bottom line is that getting married isn’t going to wipe out your credit history or change your score overnight. It may impact you when it comes to qualifying for the best interest rates and conditions, but that’s something you can work on as a couple.
Need help building your credit? Click here to learn about Addition Financial’s credit cards.