Bad Credit: Is It A Relationship Deal Breaker?

Building a financial future together with your future partner is indeed a challenging feat. You will face innumerable hurdles along the way.

But marrying someone with a bad credit score is a different ballgame altogether. In fact, it has been a deal breaker for many couples.

So, if you have a good credit history and your soon-to-be spouse does not, are you going to call off the wedding? Is bad credit really a deal breaker when it comes to finding unconditional love? Let’s find out:

Credit report

Contrary to popular belief, your credit report won’t be merged with your spouse’s after marriage. However, both credit reports will indicate the accounts that you both opened jointly or accounts with one of you named as cosigner.

Can your partner’s bad credit history affect you?

Financial institutions check an individual’s credit report and score to determine their credit worthiness. A good credit report and score will increase your chances of getting a loan, along with favorable repayment charges. Many landlords and employers also consider an individual’s credit history before offering their services.

In case you and your spouse have a joint credit account, lenders will take into account both your credit reports in order to evaluate your credit worthiness. In other words, if one of you has a negative credit history, your loan request is likely to be denied. Even if your loan application is approved, you may have to pay excessively high interest rates.

Solution

A simple solution to avoid financial woes is to apply for credit individually. Do not open up a joint credit account with your spouse, at least until their credit information improves.

Keep in mind, your individual payment history should be good enough to qualify for a loan or credit card.  Aside from maintaining separate credit accounts, it is important for you and your partner to have a discussion on finances before getting married. This will help you take action (if needed) immediately in order to avoid bigger credit problems in future.

You can order copies of both of your credit reports from the major credit reporting bureaus. Discuss your past and future finances. You can also go through financial counseling together if your partner needs help with their credit situation.

Alternatively, you can check out the wealth of credit repair information available on our website. We offer credit repair tricks and strategies to help you or your partner improve bad credit.