Does Your Spouse's Poor Credit Affect Your Credit If You Have Separate Bank Accounts?

Poor credit makes it difficult to obtain good financing rates and can make it impossible to get a loan. Poor credit affects many areas of life, and it is important to maintain your good credit in cases where your spouse has bad credit. Simply being married does not automatically result in you taking on your spouse's bad credit.

Credit Reports

Every person has a credit report assigned to him. When a couple are married and obtain joint credit, the credit report does not merge and remains two separate credit reports and scores. The only time a spouse's credit will also report on your credit report is if you are both listed on a joint account. A bank account, joint or separate, does not usually show on any credit report unless a loan is involved.

Joint Credit Accounts

Joint credit accounts require both spouses to report their name and income on the credit application, and the creditor will open an account listing each spouse as a responsible account holder. Common types of joint accounts are for mortgages, car loans and many credit cards. It is important to note that an authorized credit card user can also get both positive and negative credit reported to his credit report; therefore, you should never agree to be added to anyone else's credit card as an authorized user unless you are certain the credit card is handled responsibly.

Bank Accounts

Your spouse may have terrible credit, but it is not affecting your credit unless you have joint accounts that were mismanaged. It is safe to open a bank account together as long as the spouse with bad credit ensures he handles the account responsibly. Your credit is only affected by his actions from the point you are on accounts jointly. You should be aware that although his bad credit will not transfer over and affect your credit score, if a previous creditor receives a judgment on old debt, the funds in any bank account with his name on it could be garnished. Separate bank accounts are an option if you are not willing to take any risk.

Bad Credit Prior to Marriage

Your spouse's bad credit from before you were married or even credit that was obtained after you were married but only in his name will never affect your credit. While your credit score will remain untouched, and his negative accounts will not show on your credit report, you may be negatively impacted if previous creditors attempt to sue. Creditors can obtain judgments that will allow the creditor to garnishee wages, garnishee bank account and in some cases tax returns. Actions like this result in lower money coming into the household which do, ultimately, affect both spouses and the entire family unit.