Marriage and Credit Scores

Getting married will not affect your credit score.

When you say, “I do!” in exchanging wedding vows, you don’t mean exchanging credit scores.

“When you get married, you have two individual credit reports,” said Jonathan Ernest, an Assistant Professor in the Department of Economics at the Weatherhead School of Management at Case Western Reserve University. “Getting married in itself brings no change, just like living together in a long-term relationship would not.”

This should explode some of the myths about marriages impact on credit scores, specifically that marriage will lead to a combined credit report and credit score.

A couple’s credit report simply does not exist. Credit history belongs to the individual, and marital status is not included in a credit report. This is why when a couple is married, their credit score remains theirs.

However, any joint debt taken after marriage (think mortgage) will affect individual credit. A married couple’s ability to borrow jointly (keyword) will be judged on the credit histories of both partners. How debt is managed after marriage also will affect both credit scores.

It’s always wise to talk about money before marriage. While it may be uncomfortable, it’s important to know your future partner’s debt, bank account status, and the best approach for future debt. Not discussing this prior to marriage could lead to unpleasant confrontations afterward.

“Discussing a credit score can be useful,” Ernest said. “A lot of a relationship is based on trust and understanding, so it’s probably wise to have that information and talk about it in as friendly a way as possible.”

Does Getting Married Affect Your Credit?

Your individual credit score will not be impacted by marriage.

One of the most misunderstood myths of marriage is that a spouse takes on the other’s credit score. That is simply not true. A credit score belongs to you and you alone, and your credit history remains your own.

Credit history is a record of how a person manages debt and uses credit and is included in an individual’s credit report.

A credit score is a number that estimates the likelihood that an individual will repay a debt. The number comes from an assessment of an individual’s credit reports. The higher the credit score, the better the credit history and the more generous a lender will be.

A good credit score and strong credit history make it easier to obtain a home or car loan, rent an apartment, or qualify for credit cards.

When considering your credit, a FICO score of 800 or above is exceptional, 740-799 is very good and 670-739 is good. Anything lower would be fair or poor.

Will Changing Your Name Affect Your Credit?

Changing your name after marriage is not a factor in your credit score calculation.

A credit score follows the individual, identified by his/her Social Security number.

If you do change your name – a wife takes her husband’s name or both partners hyphenate their names – let your financial institutions and creditors know so they can update records.

These updates should start with a Social Security card. Changes also need to be made to driver’s licenses or state IDs as well as credit cards and bank accounts.

The first step in this process is the Social Security card, which you may be able to do online.

Then update your ID, usually by visiting the local state agency that issues it – often the motor vehicle office.

Next contact credit card companies to ask if the name on the card be changed. Most name changes can be requested online on the card site, with a phone call, or by visiting a branch if the card company also owns banks (Bank of America, Chase). The change is usually completed within 7-10 days.

A credit card company may ask for proof via the Social Security card or driver’s license, thus it’s important to take care of that step first.

In addition, it’s best to have your married name on checks or bank accounts. Again, as long as these accounts are individual and not joint, the change will not affect the credit report. These changes usually can be made with a visit to the bank branch.

Do You Share Debt After Getting Married?

If both partners co-sign a loan after marriage, that debt is shared. Any debts created before the marriage are the responsibility of the individual.

When it comes to spouses and credit card debt,  that debt is the responsibility of the person who made the charges — though the partner could score happiness points by helping pay said debt.

“It might make sense,” Ernest said, “that a husband or wife says, ‘I have income coming in, so I’d like to pay down the debt you brought into the marriage. Eventually, we want to put a down payment on a house, so let’s chip away at that debt in a faster manner.’”

After marriage, loans do not require that both parties apply, so if one member of the marriage has poor credit, loans can be taken in the name of the spouse with good credit.

Communication matters in this instance because legally the person whose name is on the loan is liable for the debt.

One key exception highlights the importance of knowing the laws in your state. Some states are community property states, which legally hold both parties responsible for debts and assets taken out or acquired after marriage, even if only one party signed for a loan.

Community property states in 2024 are Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington, and Wisconsin. Alaska allows couples to opt into a community property agreement, but it’s not required.

Pre-Marriage Debt vs. Marriage Debt

Credit scores and debts from before the marriage do not affect the spouse’s credit score, but any joint actions taken after marriage will.

These might include a joint mortgage loan, a joint car loan, or taking a joint loan for home improvements.

As long as both names are on the application, both parties are liable. If the debt is paid on time and in full, both credit scores will get a boost. If the debt is handled poorly, both credit scores will suffer.

Bottom line: It’s important to be diligent about debt after marriage to ensure the credit scores of both parties are not damaged.

What If One Spouse Has Bad Credit?

One spouse having bad credit will not immediately affect the other spouse’s credit score or report.

However, in this situation, the couple should be cautious about applying for credit cards, mortgages, and/or loans. If both names appear on the application, both individual credit histories and scores will be judged.

“A spouse with a poor credit score could decrease the likelihood of a loan being approved or perhaps lead to winding up with a higher interest rate,” Ernest said.

On the flip side, if one spouse has excellent credit, he or she could somewhat offset the spouse with bad credit.

Regardless, it’s important that any credit card or other debt be handled responsibly, with full payments made on time.

“There are studies that show a correlation between those with similar credit scores being partnered together,” Ernest said. “The more similar the credit scores are, the more likely the relationship is to persist as well.”

Do Joint Credit Accounts Impact Your Credit?

A joint credit account — a credit card or loan shared by two people -– will affect your credit. That’s because both parties on the account are equally responsible for the debt.

A married couple who applies jointly for a mortgage or credit cards will both be responsible for making payments. The lender does not care which partner makes the payment, but both are responsible for the payments. How both treat the loan will show on their credit history.

When applying for a loan jointly, both credit histories and scores will be checked by the lender, and both names will be on the account. If the account is handled poorly, that will be reflected on each one’s credit report. Conversely, if the account is handled well, the positive steps will be reflected on both credit reports and the credit scores may improve.

How to Build Healthy Credit—Together

If one person in a marriage has bad credit, it is possible for the couple to work together to bring the low credit score up.

Doing so will take honesty, openness, and communication. If couples do that and are responsible for their debt, they can successfully raise the low credit score.

Do not worry – debts for one will not affect the credit score of the other. However, if the couple takes out joint loans and pays them in full and on time, the credit scores for both will benefit. Conversely, not handling joint loans properly will hurt the credit score of both parties.

What steps can couples take to improve a low credit score for one of their partners? Here are a few:

• Pay bills on time. A clear and beneficial step.
• Don’t overuse credit cards. Stay below your credit limit and keep your credit utilization ratio low. Experts recommend using 30% of available credit.
• Consider a new credit card for the partner with poor credit. The best way to build credit is to handle debt responsibly. Using a new card and paying the balance monthly will help.

Solving this challenge will take diligence on the part of the person with bad credit and understanding and perhaps even generosity for the other partner. He or she could help with the debt, which in turn eases the couple’s financial burden and helps the struggling partner build credit.

Get a Handle on Existing Credit Scores and Debts

It’s important you understand your situation so do some research.

Start by assessing your credit report. It provides an understanding of any debt issues. A free copy of a credit report is available at AnnualCreditReport.com.

If there are issues on one report, talk them through to understand what led to the situation. Get a firm grasp on outstanding debts.

From there, act responsibly with debts so that they become less of an issue. When it comes to the debt a spouse brings into a marriage, communication is essential.

Pay Down High Balances

Ongoing debt requires attention to detail and following strategies that will reduce and eventually eliminate debt.

Budgeting is a good first step. This helps married couples understand what money is coming in, and what is going out. When budgeting, take care of necessities first, then see what extraneous spending can be cut. It is often surprising to find out how much money is spent in unnecessary ways.

Other techniques include paying more than the minimum required on credit cards or making a payment more than once per month.

Some advocate paying the highest debt first, but this could take time. This is why others recommend using the snowball method, which pays the smallest debt and then moves to the next smallest. This method at least provides a mental boost when debts are eliminated.

Another way to attack debt is through the avalanche payment. This means paying the debt with the highest interest rate first with the intent of reducing the overall interest paid.

Finally, consider consolidating debt. A nonprofit credit counselor could help guide a couple through consolidation. This free discussion could lead to a debt consolidation plan that involves combining multiple debts into a single payment with a more favorable interest rate and a more affordable monthly payment. The result is that you pay off debt faster while saving money.

Utilize Authorized User on Accounts

An authorized user account can help someone with poor credit.

With these accounts, one person signs for the card but allows a spouse or partner as an authorized user.

While the responsibility for the card is in the name of the person who acquired it, the authorized user may use the card. As long as the card is paid in full and on time, the authorized user benefits because it will help him or her establish credit and build a credit history.

Note: To help the spouse with poor credit, this account must have a strong payment history with no history of negative balances. Also, if the card helps your credit, removing your name from the account could affect you as well.

Communicate & Work Together Towards Your Goals

Marriage is a partnership, with shared goals and experiences. Though a wife or husband with good credit is not obligated to pay the other’s debt, he or she can help the spouse build credit.

Being open with each other and sharing financial responsibility builds the needed partnership. Talk through the budget together, talk openly about what’s realistic when you try to qualify for a mortgage, and develop a system that works for both when it comes to paying bills and eliminating debt.

Budgeting Tips & Tools for Married Couples

Financial strain can cause serious issues in a marriage. An Experian survey revealed that 20% of divorcees believe finances played a big role in their breakup, and more than twice as many said it played some role.

To avoid this pratfall, it’s important to learn how to handle money with your spouse. Here are some important considerations:

• Start with a budget. Budgeting for couples is not difficult, but it does take time. And it involves more than just listing income and expenses. Couples need to decide goals, how they will attack debt, how they will pay for vacations and even how they will pay for a college fund if they plan to or already have children.
• Find the best way out of debt for the partner with bad credit. Debt relief when you have bad credit is available, but it will take some evaluation and assessment to find the best option. There are many ways to reduce debt, including debt consolidation loans, debt management plans, nonprofit debt settlement, for-profit debt settlement and credit card balance transfers. Not everyone’s financial situation is the same. What option is best won’t be the same, either.
• A joint debt management program can help a couple pay off debt. A nonprofit credit counseling agency can help develop the right plan for your situation. Most people who enter into debt management programs – about 89% – say they do it because of credit card debt.
• Credit counseling can help assess a situation and lead to eliminating debt. Credit counseling at a nonprofit agency like InCharge Debt Solutions can help with budgeting and provide solutions for debt. The first session, which can be completed on the phone, is free and will lead to the best solution for your personal situation. Credit counseling aims to provide a solution that helps you achieve debt relief and get on a financially healthy path.