Does marrying someone with a bad credit rating affect your score?
You must be reeling in excitement on your big day; after all, you have got a perfect partner with whom you vow to share your journey ahead. Married life is not a bed of roses where you share only happy moments, but you are rather supposed to share serious moments as well. A successful marriage is one in which a couple acts like a unit rather than discriminates between this is mine, and that is yours.
But this begs the question of whether your debts will also be combined or your credit score will also be affected if your partner’s credit rating is bad. After your marriage, you will see a minor change in your credit report, such as an update in your name and address.
Getting married does not combine your credit report
Your credit report cannot be merged into your partner’s report. Your credit file will be maintained separately and show only your accounts. In fact, your credit file will not have information about your marital status. It means your credit score will remain the same as it was before your marriage.
The debt you owe belongs to you only, and the debt your partner owes belongs to them only. You cannot be held liable for the settlement of each other’s debts.
The credit rating of your partner can affect yours
There is one scenario in which your partner’s bad credit rating can affect yours. It is common for couples to take out a joint loan. Suppose you take out instant guarantor loans from a direct lender in the UK together with your partner. Now, your lender will examine your credit rating. As a result, you will end up being charged a high interest rate.
Further, your partner’s name will be added to your account, so your credit points will be lowered. You will struggle to borrow money at attractive interest rates down the line. With a joint loan, you will both be responsible for partly or wholly debt.
In case your partner fails to pay it off, you will have to settle the whole account, and the default made by your partner will also be added to your credit file. This will badly affect your credit score. You should always avoid linking your partner to debt when their credit score is not stellar. Further, make sure you both are capable of making payments.
Debts that you take out individually in your own name cannot affect the credit rating of your partner in the future. For instance, if you take out payday loans on benefits in your name, you will be completely liable for your account. Your lender cannot call on your partner to settle the debt. However, it makes an exception in cases when your partner acts as a guarantor. Despite full and final repayment of your debt, your partner will lose your credit points.
Ways to help your spouse with improving their credit score
A bad credit score is not a good sign, especially if you are looking to borrow money jointly. Mortgages and auto loans can be difficult to secure without your partner with a good credit rating, and therefore, it is vital to keep your credit score good. Here are some tricks to help your partner to fix their credit issues:
- Detect the problems
First off, you need to identify what is actually a precursor of the mounting debt of your partner. Not until you know the exact cause will you be able to come up with a strategy. Maybe your partner’s accounts are in the collection, or they may have maxed out their credit card bills.
Once you understand the cause, think of ways to fix that.
- Suppose you find that the credit score is low because of a high credit utilization ratio. Your partner should settle the whole balance. You can lend them a financial hand; however, make sure you will not face any problems down the line.
- If your partner has accounts in collection, encourage them to come up with a payment plan to get rid of them as soon as possible.
- If you notice a pattern of late payments, make sure your partner begins to pay off all bills on time.
You should openly discuss their financial problems with your partner and suggest ways to deal with them. Make sure you do not talk to them in an accusatory tone.
- Keep a close eye on it
You should discuss the progress with your partner. Do not assume that they will bounce back overnight. A number of times, they will get off track. Make sure you are always there to prevent them from relapsing. You may need to revise your strategy as well.
For instance, once high-interest debts are paid off, check what you can do next. Do not forget to check the credit report periodically.
- Use Experian Boost
Your spouse can improve their credit score by using Experian Boost. It is a free way to do up your credit rating. It will share your payment history with credit bureaus that have never been recorded before. So, if your partner keeps paying bills on time, they will see a boost in their credit points.
- Make your partner an authorized user
You can add your spouse to your credit card as an authorized user, provided they have adopted good financial habits. Paying off the balance in full will be added to the credit report of your partner too. This is how your partner will manage to improve their credit rating.
The bottom line
Marrying someone whose credit rating is poor will never affect your credit report because your accounts cannot be combined. However, you will see a bad impact on you if you link them to yours by taking out a joint loan. In fact, missed payments of the joint loan will also affect your credit rating.
You should help your partner improve their credit score so you do not struggle to obtain lower interest rates for a joint loan like a mortgage down the line.
