Can My Bad Credit Affect My Spouse?

Although your bad credit does not directly affect your spouse's credit score, it can have several indirect effects as you move forward in managing your finances together. Before getting married, you should discuss your credit scores so you don't run into any surprises when you apply for credit together after the wedding.

Separate Scores

Credit scoring is done on an individual basis, so even after getting married, you and your spouse will maintain separate credit scores. You will each have the credit history from before you got married, which means you will be stuck with your bad credit. The good news is that this bad credit does not transfer onto your spouse's credit report. Only accounts that you hold jointly will appear on both of your credit reports.

Borrowing Together

Your bad credit will affect the terms of the credit you and your spouse are offered when you apply jointly. This is most relevant when you apply for a mortgage because the interest rate offered based on your credit could force you to pay thousands more dollars in interest than you would have if your spouse applied alone. In fact, some couples choose to have only the spouse with good credit apply for a mortgage. However, this can result in a lower approval amount because only the applicant's income is considered.

Other Effects

If your bad credit includes unpaid debts in your name, these can affect your spouse indirectly. This is because some of your income must go toward paying these debts, which reduces your ability to contribute to joint household expenses. Another potential effect of your bad credit is that it can affect the premiums you pay on your joint auto insurance policy. Lastly, your bad credit can cause emotional stress in the marriage by causing your spouse to feel that you are the cause of financial problems you have together.

Tips

Work together with your spouse to help increase your credit score. His good money management skills that have led to a good credit score are teachable, so let him help you to pay bills on time and manage your debt wisely after you are married. Another way to increase your credit score is to have him add you as an authorized user on his credit card. This will cause the account history on that card to be added to your credit score, which should boost it.