How Marriage Affects Your Credit Score
Marriage is a wonderful thing, and yet in one instance it can bring with it a serious problem: credit. Marriage affects your credit score, but it’s often not an issue that newlyweds think about.
How Both Scores Are Taken Into Consideration
When you get married, your credit scores do not combine. However, your spouse’s credit score impacts your ability to get a good interest rate. For instance, if you have very poor credit and your spouse has very good credit, both of these scores are considered when you apply for a joint loan. In the worst case, you might not get a loan at all. In slightly better cases you get the loan but with extremely high interest rate.
Another major problem is the fact that you can become financially liable if you choose to combine assets. Consider, for example that you have worked tirelessly over the past few years to cultivate a great credit score. You have finally reached the 800 mark, but your spouse has done the exact opposite. If you fail to discuss personal assets and debts before you get married, it can land you in a tight spot. You don’t want to wait until after the honeymoon is over to learn that your spouse has three different accounts sent to collections and a myriad of bills that are not regularly paid on time.
The main learning is that you should have honest conversations. Then, carefully choose whether or not to put both of your names on things. You might think to put both of your names on a car will make it easier to pay the regular bills. But in so doing so, you might not realize that now your credit will be negatively impacted. Doing so without realizing this ahead of time may subsequently drop your credit score as a result.
What’s more, couples who are brand-new to marriage and might not necessarily talk about every aspect of monthly bills might set aside money for a specific mortgage or electricity bill but then one of the parties forgets and doesn’t pay on time. Even small things like paying a bill a few days late can negatively impact your scores.
How Credit Repair Can Help
There are other options if you and your spouse need help. There are organizations that help you to repair your credit as a married couple.
Incorrect negative marks on your credit history and many other things can all be rectified within a few months to help you improve your credit score. This is wonderful news for new couples, especially those who are looking to purchase their first home or maybe their first car together. By taking a few months to work with a professional service and improving both scores, you can set yourselves up for better interest rates when you go in to make a decision.
Credit Repair Companies That Work With Couples
These companies offer great programs for couples who want to work together to repair their credit. The top five companies that you might want to consider include the following:
- Ovation Credit offers couples a 20% discount for both parties signing up.
- Sky Blue Credit gives you a couples discount upwards of 16% off the monthly plan, charging you only $99 per month instead of the normal $118 per person.
- Lexington Law offers 50% off the first work fee for you and your spouse when you sign up together.
- The Credit People give you $20 off when you sign up with a spouse.
- CreditRepair.com lets you sign up for just $50 each, and with that you can sign up family or friends too.