There are some common myths that are related to marriage. These myths make people unsure of what is going to happen to their credit reports and scores when they get married. Here are some of the common marriage myths related to credit.
Our credit files will be merged
Credit reports and credit scores continue to be individual and independent even after marriage. Credit files are connected to each individual through their social security numbers. Getting married is not going to join your credit reports.
Marriage will lower credit score
Even if you are marrying someone with a lower credit rating then yours, your credit score will not get affected. Expenses from the wedding and honeymoon done on credit may affect your credit rating but not the wedding itself.
Credit History is erased with Change in the Last Name
This is also one of the common myths. Any change in name, address when reported to the credit bureau by a lender is added to the existing information. A credit report uses several identifiers to connect a credit history to an individual. Name is just one of them. The social security number is an important identifier used. A change in the last name will be recorded in your credit report along with your maiden name. No change in the transaction history will occur. You will continue to have the same credit report.
My Spouse’s poor credit Will Hurt My Score
This is not true. Your individual scores will remain the same. You may feel the effect of a spouse’s poor credit score when you apply a loan jointly. Due to the poor credit score of your spouse, you may get denied the loan or get higher interest rates on credit cards and mortgages.
You automatically become the Join account Holder on the Spouse’s Accounts
Marriage will not make you a joint account holder on your spouse’s accounts. In order to make the accounts joint you will have to file the necessary paper work with the bank or the creditor and your spouse will have to add you as a joint account holder.