It’s a common question that many soon-to-be newlyweds ask themselves: will our credit be combined? And if my new spouse has poor credit, how will this affect the great score I currently have?
The news is good if you have a great credit score and you’re marrying someone who may have a lower one: their poor credit will not impact yours. The major credit bureaus will continue to maintain individual credit reports for you both, the same way they did before you tied the knot, and your credit histories won’t merge.
However, if you become a joint account holder on any of their delinquent accounts, the missed payments will appear on your credit report. With that being said, you may want to reconsider becoming a joint account user on your spouse’s accounts if they have poor credit, because by doing so, you agree to share complete liability for the owed amount.
This also applies for any new accounts you open together after you get married, regardless of who pays the bills. It’s best to keep accounts separate if one spouse has poor credit and the other has good credit.
While maintaining separate credit histories is usually a good idea when there are substantial differences in credit scores, do bear in mind that one spouse’s poor credit can affect the couple’s ability to qualify for large loans, such as a mortgage.
If you need cash now to improve your credit or your spouse’s credit, Peachtree Financial Solutions may be able to help. If you’re the recipient of long-term annuity payments or structured settlement payments, we can buy some or all of those payments and offer you a lump sum of cash now. Many of our customers use the cash they receive to become debt-free. If you’d like to learn more about how the process works or you’re ready to get started, contact Peachtree Financial Solutions today.
Nothing above is meant to provide financial or tax advice. You should meet with appropriate professionals for such services.