Does a Credit Card in a Husband's Name Affect the Wife's Credit?

Marriage often has a huge impact on both spouse's credit ratings, despite the fact that the credit bureaus do not track the marital status of individuals. This happens because couples often join their financial accounts. However, keeping accounts separate can still affect both spouses in some states.

Joint Accounts

A credit card in your husband's name can affect your credit if you co-sign on the account. When you merge accounts, you take on the credit history of that account. This might improve your credit history, or if your husband misses payments in the future, damage it. You might also become an authorized user---an account holder with no liability to repay the debt. Authorized users receive the same payment history on the account as the primary borrower.

Community Property

Some states, such as Arizona, have community property laws. In a community property state, both spouses have liability to pay debts accrued during marriage regardless of which name appears on an account. Thus, a lender can pursue you and your husband in court for a civil judgment, which would negatively impact your credit score.

Considerations

Your husband's accounts can appear on your credit history long after you divorce because of errors with the credit reporting bureaus. Sometimes, the bureaus mix up files, especially when two people share the same address, last name or have similar Social Security numbers. Although you can dispute the accounts with the bureaus, you may need the cooperation of your husband to prove the error to expedite the dispute process.

Tip

Ideally, you and your husband should keep separate accounts through marriage so you can determine whom owes what bills in case of a divorce. If a credit card account erroneously appears on your credit history, you should meet the minimum payment first and then dispute the account. You have a liability to pay a debt as long as your name appears on an account, even if a judge orders your husband to pay. If your husband fails to a pay a debt given to him by the court, you have to go back to the judge to force payment on it.