How Your Spouse's Bad Credit Affects You |
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Your spouse has a credit
score independent from your score. Even after you are married, you will
continue to maintain your own credit score. However, if your spouse's
score is lower than yours, it may affect your ability to take on loans
as a couple. This can be very damaging when you attempt to secure a
mortgage, college loans for your children or personal loans.
Mortgage Application
On a mortgage application, you are permitted to submit the
income of you and your spouse. This will increase the limits of your
loan. The credit score of the individual with the higher income will be
used. However, if your spouse has a low score, it can still impact your
application. This is particularly true if your spouse has a large
amount of outstanding debt, since this debt can lower your ability to
pay a new mortgage. If your spouse has a previous foreclosure, you may
be denied a loan even if your credit is strong.
College Loans
You may apply for loans as a couple to fund your children's
education. Your combined income, debt and credit scores will be
considered when the lender issues loan terms. If you have good credit
but your spouse has bad credit, you may offset each other's scores. The
lender may ask to have a loan issued only in your name. In this case,
only your income could be used to secure large limits.
Personal Loans
Any loans you apply for personally in connection with your
spouse will be affected by your bad credit. Again, leaving your spouse
off the application is an option. However, your lender will be able to
set your loan limits based only on your income, which can reduce the
loan size for which you qualify.
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