How Bad Credit Can Affect Your Marriage

Most people don't even think about their partner's credit history before they get married. They're so wrapped up in romance that they either forget to ask about it or they don't want to face reality. Talking about credit reports is simply not romantic, but it is a necessary precaution.

How Bad Credit Affects Marriage

Housing

Acquiring a loan for a house or renting an apartment will be difficult if one of you has bad credit and you're applying together. It is routine for a landlord to run a credit check on new renters. Your credit report lets the bank or a potential landlord know the likelihood that you will pay them back. If one or both of you have bad credit, there's a chance your application will be denied.

Higher interest rates

Bad credit takes time to fix and will cost couples more money in the long run. Having a low credit score means that you will most likely have a higher interest rate. This results in paying more in interest and fees compared with someone who has a good credit score. The options for financing a new vehicle can also be limited.

Job offers

Looking for a new job or want to change your career? Be aware that some prospective employers run a credit check on potential employees. They usually ask for your permission to run a background check or a credit check when you fill out a job application. Some have turned away qualified applicants because they saw their credit history.

Joint accounts

Be aware that you will be held accountable for any debt your spouse acquires during the length of the marriage. Ending the marriage does not end the debt. It isn't necessary to combine your credit once you get married. Consider keeping your credit separate until the credit history of the spouse with the lower credit score improves.

Counseling

An unhealthy financial relationship can lead to an unhealthy marriage. Money, credit and debt problems often lead to arguments and can strain a marriage. Openly discuss any debt you have with your partner. Communication is key in any marriage and the subject of money should not be off limits. You might have to go through credit counseling or seek debt management to get back on track financially.

Stephanie Armstrong