Finding that “special someone” to marry and spend your happily ever after with can be exciting, but what if your spouse has bad credit? Good question.
If you’ve recently entered the land of marital bliss or are on the cusp of tying the knot, you might be wondering if your credit will be impacted by your spouse’s financial history. While marrying someone with bad credit doesn’t directly affect your credit, there are consequences that can come about if you and your partner aren’t on the same page financially.
A couple factors to consider when marrying someone with bad credit history:
- Applying for joint loans or financing
If you and your spouse plan on purchasing a home and one of you has bad credit, lenders and finance companies will take both your credit histories into account, which could result in higher interest rates. Experian suggests having the spouse with stronger credit history apply for the mortgage in his or her name only; however, since both incomes won’t be factored in, the loan may fall short of what you want to purchase the home.
Similar to a cosigner, when you and your spouse open credit cards and loans together, they will be listed on your credit reports as joint accounts. This means that both of you are equally responsible for making on-time payments and if one of you falls short, both of your credit histories could be negatively impacted. It may help to have a system in place for paying bills on time and holding one another accountable.
- Addressing the problem
If you and/or your spouse has bad credit, it’s never too late to get back on track and support each other along the way. Identifying the root cause of you or your partner’s bad credit (i.e. overspending, not planning for emergencies, etc.) may give you the leverage you need to put a plan in place to improve your finances.
If you or your spouse has bad credit and are in the market to purchase a vehicle, a car dealership enrolled in the Credit Acceptance program can help. Once you’ve been approved through our program, you can improve your credit by making on-time car payments.
Simply fill out the form on our website and we’ll connect you with a car dealership in your area that can help you get started!
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