My2Cents Posted December 11, 2003 Share Posted December 11, 2003 If you have really bad credit and you get married is your spouse effected by your bad credit from there on? How does that work? Do you become a pair and have one credit line or do you still have individual credit lines? I've always wanted to know but never dared ask thinking it was a dumb question. Thanks in advance. Link to post Share on other sites
lost_in_chgo Posted December 11, 2003 Share Posted December 11, 2003 Your credit would be separate, but whenever you buy something jointly credit approval and ratings are affected by the other person. That is, if you buy a car together and the other person doesn't make the payments and tells you they did, your credit rating is affected and you are liable for the payments. Link to post Share on other sites
Arabess Posted December 11, 2003 Share Posted December 11, 2003 It's not a dumb question AT ALL! As a matter of fact, it's highly valid! When you marry someone and let's say you want to purchase a house together.....BOTH of your credit histories are considered. It's hard to only have one person's name on the application....because both incomes need to be considered. This also holds true on car or credit card applications. If you have bad credit...try to clean it up before getting married. Or be like me....I'd have to warn some poor guy in advance!!!! LOL! You might want to consider calling your local credit burea to go over your record, plus find out what you have to do to fix it, plus get other answers from then as to how much your credit will effect someone else in the future. Link to post Share on other sites
My2Cents Posted December 11, 2003 Share Posted December 11, 2003 So If my future husband has bad credit and I have good credit I can still use my good credit to purchase everything and just not use his w/ out being effected? Link to post Share on other sites
cdn Posted December 11, 2003 Share Posted December 11, 2003 You'll each have your own credit history. If you make joint purchases, then both your credit histories will be considered. Most creditors will look at the lowest score when assessing their risk (translation: when deciding whether to extend credit to you and at what interest rate). So the one with bad credit will tend to cancel out the one with good credit. Sometimes you can avoid problems by making a purchase in just one name. When I first got married, I had much better credit than my husband (his wasn't bad so much as just absent). So it was recommended that our first house be in my name exclusively. This meant that only my name was on the deed, which could cause other problems potentially (it didn't for us). But we were able to get a much better interest rate this way, which really matters on something big like a mortgage. I posted in another thread that credit history is being used more and more for non-credit types of decisions -- like employment. So I recommend that you do whatever you can to clear up bad credit, including going for credit counseling. Link to post Share on other sites
Arabess Posted December 11, 2003 Share Posted December 11, 2003 I know the Credit Burea used to list 'marriages'. I guess they get them off of some data base somewhere and put them in your file. I don't know how much of a difference it would make as long as the other person wasn't listed as part of the loan application. IF the marriage didn't work out though....keep in mind, even though the court may say you are no longer responsible for such and such bills due to settlements....the loan company will STILL come back on you as the original loan holder. To protect your credit and financial history....you would have to be careful on any purchases you made while married. Even if everything is in your name....he would still be entitled "as your legal husband" to some of the assets. Link to post Share on other sites
cdn Posted December 11, 2003 Share Posted December 11, 2003 I don't think the bureaus list marriages any more. I check my credit report fairly regularly and there's no record of my marriage (nor in my husband's). So using just one person's name is an option, assuming you have the income to support this choice. Arabaess is correct that, depending on where you live, the laws governing marital property won't necessarily care whose name a purchase is in nor whether you both signed the application. The larger issue, imo, is whether your future husband has his bad credit habits in check. If not, you could be opening yourself to a world of problems. Link to post Share on other sites
My2Cents Posted December 11, 2003 Share Posted December 11, 2003 NO, it's me I have horrible credit from when I was 18 going all the way untill now. I have a huge unpaid school loan that I haven't started paying, and like 5 credit card companies that I totally screwed when I was younger.... I feel like my credit is so bad that I couldnt' even begin to fix it, I'm 25 now and I don't know what to do about it....anyone know anything about declaring bankruptcy? I'm a single mother & I work to support my child and my self w/ no type of assistance so it's difficult to keep up w/ bills. I have a list of unpaid bills that goes for miles...I know it's bad but it's the way I've survived. I really would like to fix my credit but I just think it's beyond repair. Anyone have any advice? Link to post Share on other sites
cdn Posted December 11, 2003 Share Posted December 11, 2003 Yes, call a reputable consumer credit counseling service. Here is a link to Fannie Mae's site which has listings of such services as well as tips on what to look for (and steer clear of) in a service. http://www.fanniemae.com/homebuyers/assistance/counselors/index.jhtml?p=Resources Bankruptcy willnot solve your credit problem but will be a huge blight on your credit report for a minimum of 7 years and often for as long as 10. Link to post Share on other sites
yogi-mon Posted December 11, 2003 Share Posted December 11, 2003 that sucks. im sorry you have bad credit. it must be frustrating. If the guy you meet has enough dough to offset any bad credit you might have .. logically speaking.. ur good to go. i dunno if i would marry someone w/ bad credit Link to post Share on other sites
yogi-mon Posted December 11, 2003 Share Posted December 11, 2003 To protect your credit and financial history....you would have to be careful on any purchases you made while married. Even if everything is in your name....he would still be entitled "as your legal husband" to some of the assets. Thank god for offshore accounts and numbered companies! Link to post Share on other sites
Tony T Posted December 11, 2003 Share Posted December 11, 2003 Your spouse will not be affected by your bad credit unless he or she applies for credit jointly. Keep yourself out of the loop and all will be well. In the case of home loans, most lenders give greatest weight to the male since the female may have children and be out of the job market at some point. Bad credit isn't all that bad these days if you make an effort to make it good. After a year or two of good credit history, you're just fine...even after a bankruptcy. Bad credit isn't all that terrible anymore as long as you keep in touch with your creditors and do the best you can to get it right. Link to post Share on other sites
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