Will Marrying Someone with Bad Credit Affect My 800 FICO Score?
Many people believe that marrying someone with a poor credit score will automatically drag their own score down. However, the truth is more nuanced. While you and your partner inevitably share financial responsibilities after marriage, your individual credit score remains largely unaffected if you take the necessary steps to protect it.
Understanding Credit Scores and Marital Obligations
A credit score is a numerical rating generated by credit bureaus based on an individual's financial history. It reflects your ability to manage debt and pay bills on time. When you marry someone with bad credit, your personal credit score is not directly impacted unless you intertwine your financial lives in a way that makes you jointly liable for their debts.
Marriage typically means that both partners are now financially tied, which means any obligations, including debts, become marital obligations. This is similar to how marital assets are managed.
Protecting Your Credit Score
To maintain your excellent 800 FICO score, it is crucial to keep your financial lives separate. Here are some steps you can take:
1. Do Not Add Your Partner to Your Credit Accounts
The most important thing is to never add your partner as a joint owner or an authorized user on any of your credit accounts. This includes credit cards, loans, and mortgages. Even if you share accounts, each partner's credit score remains independent unless you become jointly liable for the debt.
2. Maintain Separate Finances
Ensure that you keep your personal assets, finances, and obligations separate. This includes maintaining separate bank accounts, savings, and any other financial resources. By keeping your finances separate, you can demonstrate to credit bureaus that you have a strong ability to manage your own financial affairs.
3. Review Marriage Agreement
If you are not yet married, consider discussing and possibly drafting a prenuptial agreement that outlines how assets and liabilities will be managed during and after the marriage. A prenuptial agreement can provide legal protection for both parties and can be especially helpful if you have separate credit scores.
4. Keep Good Financial Habits
Continue to pay your bills on time and maintain a low utilization rate on your credit cards. These habits are crucial for maintaining a high credit score. Additionally, avoid any unnecessary debt that could jeopardize your current financial health.
QA
Q: What can I do if my partner has a poor credit score but I don't want to add them to my accounts?
A: If you don’t add your SO to any of your accounts it shouldn’t matter. Given your stated circumstances I would keep your credit separate. By maintaining your own finances and ensuring that your partner's debts do not become yours through marriage, you can protect your score.
Q: Can adding my partner to my accounts still affect my credit score?
A: If you add your partner to your accounts, you can become jointly liable for any debts they have. This means your credit score could be affected if your partner defaults on their debts, as it would negatively impact your financial history. By keeping your finances separate, you can protect your score.
Conclusion
In conclusion, while you and your partner will inevitably share some financial responsibilities after marriage, your 800 FICO score is largely your responsibility. By taking proactive steps to protect your financial life and keeping your accounts and assets separate, you can maintain your excellent credit score and potentially fortify your financial position.