Applying for Loan in TempeHave you ever wondered what will happen to your credit when you get married?

In most instances, you’d be glad to know that the answer is “nothing.” Both of your credits would continue to be given separate reports that contain your own credit history, meaning that yours won’t appear on his or her credit report and vice versa. This is great news, particularly if your spouse has a lower credit score or negative marks in his or her credit history.

Will Your Spouse’s Credit Affect Yours?

If you’re planning on applying for a loan or credit card, both of your credit histories would be evaluated to determine your eligibility. This basically means that if both or only one of you have low or bad credit, then there’s a chance that the bank or mortgage company like Primary Residential Mortgage, Inc. will double check your application. In the event that the lender or bank approved your application, the fees and interest rate will be higher than if the spouse who has the higher credit rating applied for the credit card or loan separately. Basically, when it comes to authorized user accounts and joint accounts, the account history will be reported on both your credit reports, regardless if only one of your actually utilizes that account.

In addition, with joint accounts, both of you will be held responsible for paying off loan and credit card payments, meaning that the lender or creditor might also collect from both you. On authorized user accounts however, only the primary holder of the account will be legally responsible for making payments. The good news is that your credit score will remain the same and won’t drop just because you married an individual with a low credit rating. Conversely, your credit score won’t improve if you married an individual with an excellent credit score.

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Some Crucial Things to Consider

If the credit score of your spouse is lower than yours (or vice versa), you must figure out how to deal with credit-based applications. Would you apply jointly in exchange for higher interest rates just to improve the credit score of the spouse with a lower rating? Or would you opt to have the spouse with higher credit apply independently to obtain better rates? Ultimately, your decisions must be based on your specific priorities and financial circumstances.