How Does Marriage Affect Credit Scores?

Marriage is one of those ares where money problems can keep couples from living a happy, stress-free life together.

Some money problems — or potential problems — are myths that can hold couples back from making financial decisions that could make their lives easier, such as getting separate credit cards.

Credit scores, however, don’t drop just because two people get married and one person has a low credit score. Married people don’t have the same credit score and credit history.

Same names, different scores

“Sharing the same last name doesn’t mean you share the same credit score or credit history,” says Harrine Freeman, a financial expert who has written a book about how to get out of debt.

[pull_quote align=”left”]”Both persons have a unique Social Security number and different credit scores and credit history. They may have joint accounts but will still have different credit scores,” says financial expert Harrine Freeman.[/pull_quote]”Both persons have a unique Social Security number and different credit scores and credit history,” Freeman says. “They may have joint accounts but will still have different credit scores.”

Each person in a marriage has their own credit score and should check their credit report each year.

This is true even in joint or community property states. If your name isn’t on an account in a community property state, then activity on that account won’t be reported on your credit report.

If both people in a marriage are listed in a joint account for a credit card, for instance, then each person’s credit score will be affected by how that account is used. It doesn’t matter if you’re listed as an authorized user or the primary holder of the account.

Have 1 separate credit card in marriage

It’s a good idea to have some credit in your name, in case you get divorced and the joint accounts have to be closed. With a separate credit account during marriage, you can build your credit rating by yourself and can more easily open a credit account if the joint accounts are closed.

[pull_quote align=”left”]If your spouse didn’t have good credit before marriage, it can be improved by adding them as an authorized user to help them build good credit. Authorized user accounts are used in credit reports and can be use by lenders.[/pull_quote]If your spouse didn’t have good credit before marriage, it can be improved by adding them as an authorized user to help them build good credit. Authorized user accounts are used in credit reports and can be used by lenders. While authorized user accounts may not always be included in credit scores, they can help establish a credit history so that the user can get their own accounts later.

While marriage doesn’t combine credit histories, two people with two different credit histories can affect how they get loans together, especially a home mortgage.

Unless you can afford a house on one person’s income, you’ll need to apply for a home loan jointly. A poor credit history by one person could mean paying higher interest rates and fees for a home loan.

Impact of divorce

Divorce can also affect credit scores. While divorce proceedings don’t affect credit reports or credit scores directly, they can affect joint accounts after a marriage breaks up, says Becky Frost, a senior manager at Experian.

“The financial issues that are embroiled in the divorce process often involve joint credit accounts, and those very much affect credit history and credit scores,” Frost says.

A divorce will usually lead to joint accounts being closed, and there are other times when closing joint accounts is a good idea. While we’ve already debunked the credit card myth that canceling credit card accounts will boost a credit score, it does make sense to close an account when you share a joint account and the joint user is irresponsible with credit, says Michael Mack, who started BankFound.org to help people recover from bankruptcy.

In that situation, it’s a good idea to close a joint account, Mack says. He also advises to close a joint account when the primary user has died.