So maybe you’ve been recently married, or maybe you’re planning on getting married and doing some initial research. You’ve come to the right place. Today’s blog post is titled “Credit Scores & Marriage”, and that is just what we will discuss.
Your credit score is going to play a big part in many of your financial decisions as a couple. Here are a few facts you should become familiar with:
- You and your spouse have individual credit scores. You DO NOT have a joint score.
- When applying for joint income credit, lenders typically will look at both of your income and credit scores.
- Getting a joint account? The accounts activity will affect both your individual credit scores.
Applying For Credit With Your Spouse’s Credit Score
Alright, let’s break this down. You won’t be able to use your spouse’s credit while applying for credit in your name.
For example, if you are applying for a car loan or credit card in your name and you have poor credit, you won’t be able to solely use your name, and run a credit check on your spouse.
The same is true for applying for credit jointly (you and your spouse on the same account or loan). If you have a poor score and your spouse has a good one, you don’t have the option to only use their score and not yours.
It Gets Worse
Your bad credit score can come back to bite you, especially while looking for a mortgage loan. The Reason being, most mortgage lenders will check both of your credit scores when evaluating your loan application; even if your spouse’s good score would qualify for a loan with a good interest rate, your bad score may mean that, as a couple, you would only qualify for a loan at a worse interest rate, or not qualify at all. Dang!
Oh The Shame!
Are you the spouse with bad credit? It can be pretty shameful. You may be the one with good credit and you’re researching how your future partner will affect your available credit as a couple. Either way we can help you.
Give us a call today or visit our website for more info inversioncredit.com >>