Marriage and Credit
Getting married is an extremely exciting and important decision. Building a life with your partner will be both rewarding and challenging at different points. Before you tie the knot
Your Partners Credit
If you or your partner has bad credit, now is a good time to look
into credit repair, especially if you are planning on buying a home together, or opening joint accounts, as most married couples do. Just saying "I do" will not combine your finances, so your individual accounts will remain unchanged; however, any and all joint accounts you open will appear on and affect your individual credit reports. Some states have community property laws, meaning any debt accrued during a marriage is automatically considered to be a joint asset. In states such as this, combining all your accounts is an option it would be wise to look into.
The best way to continue to have good credit, both as individuals and a couple, is to have a solid understanding the terms of your accounts. Pay close attention to interest rates, credit limits, late payment fees and cash advances. If you do decide to consolidate your accounts, you should keep at least one account in your own name in case of emergency. It can be very useful in re-establishing credit in the case of a divorce.
Marriage and Credit
If you are a woman planning on taking your husband's surname, you will need to inform current creditors and the Social Security Administration of the change. It is not necessary to inform the credit reporting agencies, as they will automatically receive the update when you tell your creditors.
Successful credit management as a couple means understanding that individual behaviors will affect both you and your partner. Quickly getting credit when you need it will be hard if you haven't understood the consequences of having joint accounts. Remember to consider how monthly payments on a large purchase will affect your overall budget. If you stick to these guidelines, you and your partner will have a happy and mostly stress-free financial lifestyle.
- Understanding Credit:
