Myth #19 – My Credit Profile is Merged with my Spouses When I Get Married

FACT: Credit profiles are never merged

Credit, credit reports and credit scores usually are not the first things couples are concerned about when they decide to get married.  However, it’s always a good idea to discuss your past credit history beforehand.  Less than perfect credit can impact future joint purchases and is an important factor towards finances.

When you get married, here are some misconceptions about credit reports:
Credit reports do not merge together
Credit reports are not erased once married
Credit scores do not change because of marriage
Your credit reports are always maintained at the individual consumer levels.  Your credit report is usually located using your first and last name, address and social security number.  Only loans and credit cards applied for jointly will appear on both spouses credit reports.  Individual accounts will not be on a spouse’s credit report.   If either person includes the other as an authorized user on their credit card, this will be reported on both credit reports.

After you marry, your individual credit file is not deleted.  Your credit report should be updated to reflect the new name (if applicable) and the combination of names that you have used when you applied for credit.  Your names will be shown in the AKA (Also Known As) section of your report.  For example if Mary Jane Smith is now married to John Jones, she could have AKA such as Mary J. Smith, Mary Smith, Mary J. Smith, Mary S. Jones, etc.

Your credit score doesn’t change as a result of your marriage.  Your credit score can change based on your payment and purchasing behavior, opening new accounts, etc.  In addition, your credit score can decrease if your spouse adds you to an existing account if the account is maxed-out or has a bad payment history.   Your score could improve if you are added as an authorized user on an account that has good credit history.   Opening a joint account could impact your score by adding another new account to your credit reports.  Applying for new credit will also cause the creditor to check your credit, resulting in a new credit inquiry which could negatively impact your credit score as well.

Whenever you apply for a loan jointly such as a new car or mortgage, both credit reports are reviewed by the lender to make the credit decision.  If one spouse has less than perfect credit, this can impact the interest rate you pay, amount of down payment and whether you qualify for the loan.

When deciding to get married, discussing each other’s credit history may not be the first thing couples want to do; however, it should be discussed so there are no surprises down the road.

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480-502-5554

Legal Disclaimer:
The advice provided is for informational purposes only. It is not
to be used as legal counsel or legal advice.