You know it's important to maintain your own credit identity when you're married, but here's what ehadams is curious about: "What happens to credit when you get married? For example, if he has bad (or no credit) and you have excellent credit, what happens?" The answer to this is less complicated than going through the process of changing your last name! Find out what it is when you read more.
In a nutshell, nothing happens to your credit when you get married. Your credit history is yours to keep, but it's important that you continue using the cards you already have in your name so that your credit history stays active. Your names will never appear on a credit report together — reports are generated for individuals only. However, if you and your husband open any joint accounts together those will appear on both of your credit reports.
While there is no such thing as "our credit score," your husband's credit could affect you (but not your credit score) because both of your scores are considered when you apply for joint accounts or a mortgage loan. You might be faced with higher interest rates on these joint finances than if you applied for them on your own. It would be beneficial for him to work on improving his score (or building some of his own history) before applying for a mortgage together or financing another major purchase.
Promod
Karen Millen
Pineapple
Thanks so much for this post because I always wondered what that whole I jsut got divorced an now my credit rating is in the crapper thing is about. I don't plan to get divorced but is there something about your credit score that is effected if you do? I mean do you lose points in the FICO scoring process or something?
1Yeah, thanks for clearing that up!
2Good to know...so when I get married can I still change my last name on my credit cards and have it not effect me?
3Also, his name will appear on your credit report as your spouse in the information section. I don't know if it happens if you have something joint or when you get married. They may take a peek at his credit just to investigate your situation. (i don't know if that's legal or not)
4Thank you Savvy!
5SomethingWicked-
Your credit report will be updated to reflect your new last name, but that won't do anything to the information in the report.
6Actually after what I just went through, I won't get married again, at least not for a very, very very long time.
I paid a huge financial price for "trusting" him to keep his end of the bargain....lesson learned.
7DIVORCE:
What happens when a partner's credit goes way down after a divorce is when the other basically screws them over, wether or not intentionally. If both parties are well off financially and all ties are split then you are fine, but here's a few scenarios I saw growing up...
One party has no $$, so they continue to use a joint credit card. That will still affect the other partner's credit!
One party ends up going into bankruptcy or losses a joint asset or even one that used to be joint but no longer is (like a house that you "give" to the one you're divorcing).
Anything that used to have both names on it, you either have to destroy immediately or take care to monitor it. The credit bureaus and financial industries aren't perfect and will often mess things up when forgetting to sever the ties with divorce, so make sure that you protect yourself! ESPECIALLY if the divorce goes badly or not amicably. Your partner can run up your joint credit cards or accounts before the divorce is even final or a day or two afterwards, really destroying your credit. So Watch Out!
8I didn't grow up in the US, so I had almost no credit history when I got married. I tried to get my history up and running by applying for department store credit cards or charge cards. Two years later, my credit score is only slightly lower than my husband's. We have learned though that having no credit history is worse than having bad credit--at least in our experience. When we tried to buy a house, the loan officer had plenty of questions for me.
9i think that this is really helpful information. my fiance really has crappy credit and i've been consistently trying to maintain mine or better it knowing that we are going to have to rely on my credit to buy a house or get a new car when my lease is up etc.
10Seriously. Thanks so much Savvy.
11What really matters is if you pay your balance due on time, or not.
12If your spouse is the breadwinner and he/she pays the bills, and pays a card in your name late or doesn't pay at all, that will bring your "excellent" score down to a "poor" score. Keep an eye on your credit loans and make sure they are being paid(whoever cuts the checks) and you'll be fine. Divorce is tricky... I had to have it agreed upon in court that I would not be held responsible for any of my ex's defaulted loans that he incurred before we married.
Otherwise, the creditors were so going to come after ME. Shady!
My husband has bad credit, and we got a better loan on our house with just my credit and salary. So, mortgage is just in my name, yay.
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