Does My Husband's Credit Before We Married Affect Me?

Money matters are often cited as one of the primary reasons why marriages fail. Couples sometimes fail to discuss credit in general or the specifics of each one's finances until they are married. Before and after a marriage, you and your spouse have separate credit scores. Often one spouse's credit accumulated before marriage can have an indirect, negative impact on the couple's financial condition after marriage, but only in certain ways.

Mortgage

A primary way a spouse's credit can affect you is when buying a home. When making this investment, the lender uses each party's credit in determining financial viability for mortgage repayment. If your spouse had bad or too much credit before the marriage, you may have to leave him off of your mortgage contract. By doing so, you will also not be able to utilize his income in computing your mortgage viability. If you attempt to purchase the home as a joint mortgage and your spouse has poor credit, you may have to pay a higher amount down, pay higher interest rates and spend significant time documenting his credit.

Credit Cards

With jointly held credit cards, both parties' credit is weighed in considering an application and as the account is evaluated on an ongoing basis. If one party's credit declines, the credit card company can reduce the credit line on the account affecting all involved, with no required notice. It may also send a notice of a change in terms for the credit card agreement to raise the annual percentage rate on the account. In this case, you will have the opportunity to "opt out" of the change in terms by closing your account permanently.

Remarriage

If your spouse was previously married and had joint debt with his previous spouse, this can affect you. Experian, one of the three major credit-reporting agencies, says, "When you obtained credit, you and your spouse signed a contract agreeing to pay your bills. A divorce decree doesn't change that contract." If the former spouse defaults on credit they were both still responsible for, your husband's credit will also be impacted. His debt-to-income ratio will continue to include all of his previous marriage's debt up to the date of the divorce, after which new debt will not be his responsibility.

Other Considerations

There are other places pre-marriage credit directly or indirectly affects your current finances. Insurance agents will typically check credit of all stakeholders on an account and will raise rates for couples with more financial risk. Medical and dental professionals may also check you and your spouse's credit before allowing you to make payments for these services. If he had previous charge-offs from similar groups, the office may request prepayment for non-emergency services. Cellular phones may require a deposit if you apply for one jointly with a husband with credit concerns.