Does My Credit Affect My Spouse?

Money is one of the leading causes of arguments between married couples. When one spouse is a spender and the other is a saver, or one meticulously writes down every transaction while the other keeps "a general idea" of how much money is in the bank, it can cause stress and disagreements between even the most loving couples. Understanding how your credit history affects your spouse is one way to keep your marriage on the right track.

Individual Accounts

Regardless of whether your credit is poor or excellent, it does not directly affect your spouse's credit rating. How you handle accounts that you open in your name only, whether a credit card or a loan, affects your credit report and score only, regardless of whether you are married. Your spouse is only responsible for your debts if you live in a community property state -- Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington or Wisconsin -- and if the debts were incurred during your marriage. However, if you list your spouse as an authorized user on your accounts in any state, the account history appears on both of your credit histories, meaning that a spotty history on that account can damage your spouse's credit.

Joint Accounts

While your individual credit history may not directly affect your spouse's credit rating, it can influence your ability to open joint credit accounts. If you apply jointly for a credit card or mortgage, if one spouse has a spotty credit history or low FICO score, the application may be denied or you'll pay a higher interest rate. In some cases, the partner with the higher credit rating can apply for the credit individually. Because your spouse's income isn't taken into consideration when determining whether you qualify, though, you might not be able to get the amount of credit you need.

Fixing Problems

Whether or not you apply for credit together or separately, if your spouse has poor credit or money managing habits, it can cause problems with your family's finances. If your spouse has credit issues, examine the reasons why. Overspending and failing to live within his means can certainly cause credit problems, but it's also possible that the issues are a result of a job loss, illness or other short-term problem. If you know that your spouse has problems managing money, keep your accounts separate to protect your personal credit history. Avoid opening joint accounts, since both partners are responsible for repaying the debt, unless you are sure that you can handle the repayments responsibly.

Communication

One way to avoid unpleasant surprises in the future is to discuss your financial situation with your spouse before you get married. Knowing where each person stands in terms of debt, credit history and views towards money can prevent serious problems in the future. Work together to develop a plan to fix the problem, whether it's paying down debts or opening a new account together to reestablish your spouse's good payment history. Don't try to hide your poor credit or debt problems from your spouse. Chances are that she is going to find out at some point, and you'll be facing marital problems as well as a low credit score.