Ways Getting Married Impacts Your Credit Score
When you tie the knot, your financial lives become legally intertwined. But what about your credit?
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Getting married won’t directly impact your credit score, according to Capital One. But there are some important things to understand about how marriage can indirectly influence both partners’ credit.
Joint Accounts and Shared Credit History
When you get married, you take on shared responsibility for any joint debts or accounts. If you open a joint credit card or take out a mortgage together, you’re equally responsible for repaying that debt obligation.
The same goes if your spouse is an authorized user on your credit card, or vice versa.
Opening joint accounts or taking out joint loans can help you better manage your money, combining your assets and debt. But your spouse’s credit history can influence your credit score in these situations.
If your spouse misses a payment on a shared card, it could negatively impact your scores. Plus, if they have less-than-stellar credit, it could prevent you from getting the best rates on your loans — or you may get denied.
Learn More: 7 Things You Should Know If You Deposit More Than $10K Into Your Checking Account
Your Spouse’s Debt Is Not Your Own
It is a common misconception that your spouse’s debt automatically becomes yours once you get married. Your spouse’s accounts and debts in their name don’t legally become shared marital debt.
For example, if your spouse has large student loan debt or credit card balances before marriage, you’re not responsible for repaying or co-signing those obligations. Unless you add your name to the account, the debt only stays in your spouse’s name.
Per Experian, in some community property states, debt incurred by one spouse during the marriage can be considered joint debt if you get divorced. So, it helps to understand the laws related to where you live.
How Couples Can Build Credit Together
Getting on the same page financially and establishing smart credit habits can set your marriage up for success. Consider these tips:
Check your credit reports: Identify any issues early to know what you need to improve. You can access free reports at AnnualCreditReport.com.
Build joint credit: Open a new joint credit card or add your spouse as an authorized user to start responsibly managing shared accounts.
Start an emergency fund: Having savings helps you weather unexpected expenses instead of relying heavily on credit.
Communicate regularly: Discuss any substantial purchases or debts before taking them on to keep your spouse in the loop.
Make payments on time: Set payment reminders and automate them so you do not miss shared credit obligations. This can boost both your scores.
Limit hard credit checks: Too many credit card or loan applications can result in unnecessary inquiries on your reports.
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This article originally appeared on GOBankingRates.com: Ways Getting Married Impacts Your Credit Score
