What Happens to My Credit Score When I Get Married?

Getting married changes lives in many ways. For a couple looking to tie the knot, the impact of those two "I do's" on their credit scores needs to be considered. Whether you are marrying "up" to someone with a better credit score or "down" to someone whose financial history is less stellar than yours, it pays to know the ins and outs of credit scoring before making that long walk down the aisle.

Significance

According to the New York Times, "Generally speaking, the higher your score, the more money you can borrow and the less you'll pay for the loan." Credit scores are a weighted score that includes consumer debt and payment history data from credit bureau reports and creates a three-digit FICO score. Since lenders, auto insurance agents, and even employers use this score to assess credit worthiness, credit scores have a direct impact on the price paid for many items.

Misconceptions

Your wedding certificate won't instantly raise or lower your credit score. As Maxine Stuart, Experian's public education expert points out, "Getting married does not cause your credit history to be combined with your new husband's." However, she goes on to warn that if your partner has a bad credit history, it could "impact your ability to get credit together."

Debt Consolidation

Your first impulse as a newly married couple may be to combine debts. As Kiplinger.com's Erin Burt is quick to remind us, "if one of you brought debt into the marriage, it becomes a problem for both of you. You'll need to work together to come up with a plan to pay it off. However, you should never officially commingle your debt. Doing so could hurt the credit score of the other partner and make it difficult for one or both of you to get credit later."

New Loans

When there is a difference in your credit histories, applying for new credit separately maybe be the more economical solution. If the partner with the better credit history has the income to support loan applications or car insurance requests, then solo applications may yield the better rate. For large purchases, like a new home, mortgage lenders will check both partners' credit scores. The mortgage rate and decision is weighted toward the partner with the worse credit history - meaning a higher interest rate or being turned down by the lender.

Solutions

Taking steps to improve both partner's credit score will have long-term benefits. While all accounts held jointly impact both credit scores, many couples opt for individual accounts to maintain a separate credit history. Agreeing on a spending plan, making on-time payments a priority and paying down any old debt can boost credit scores--and ensure both of you reach your financial goals.