Incomes Growing Faster than Debt in US
If you have good credit and your spouse-to-be doesn’t, you’re likely wondering if your good credit will be impacted. In reality, getting married does not necessarily affect your credit. Contrary to popular belief, you will not automatically take on your spouse’s bad credit and past debt.
However, if you open a joint account and add your spouse as an authorized user, or cosign a loan together, then your credit can be affected. Payment history will show up on both credit reports. Here are a few ways to avoid unexpected credit issues from hampering your marriage.
Share Your Financial Pasts
It is essential to know where someone stands financially before you decide to spend the rest of your life with them. Money is one of the top things that couples fight about in marriages, so it is an important issue. You should be aware of any outstanding debts or loans, as that can affect your finances. If your significant other has bad credit, they may be unable to do things like be in a rental agreement or lease a car. Understanding how your partner budgets and spends can prevent future crises and allow you to plan.
Wait to get Married
If your spouse-to-be has serious financial problems, then you may want to postpone the marriage. It could be beneficial to wait a year or two and give them enough time to clean up their credit and get their finances in order.
If you do not want to wait, then the two of you should not open a joint account until after the marriage. It is also a good idea to make sure that your spouse has their finances in order before opening a joint account.
Decide Who Will Make Which Purchases
It’s all about planning. Once you’re aware of their financial history, you can decide what to do with it. For example, if your significant other has bad credit and has trouble leasing a car, is that something you’re okay doing for them? Talk to each other about how you plan to lay out your communal budgets, who will pay for particular necessities and schedules for bills that are due.
Apply for Credit Without Your Spouse
Not all spouses share finances on paper. You can always wait to get a joint credit card until both parties are financially ready. Each person can have a separate credit card, and you can figure out how to pay each other back on your own.
Consider Getting a Prenuptial Agreement
Prenuptial agreements are not something that most people like to talk about. A prenup could protect your finances if a divorce were to happen. You can also outline how to handle any debt in the agreement. If you own property or have a significant salary, you may want to protect that.
If you or your significant other is currently dealing with severe credit issues, it is vital to take swift action. Debt collectors are relentless and won’t stop until they collect every penny. Heather Benveniste with Benveniste Law Offices can halt collection efforts and negotiate debt repayment on the most favorable terms to you. Contact us today at 1-800-497-5358 for a free case evaluation.
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