Though many lenders have high standards when it comes to credit, there are some that don’t put too much weight on credit histories and scores. In fact, many participating lenders in the Money Mutual loan network won’t ask you for a credit report, or even a credit score. But if you’re applying for a mortgage or a decent rate on a credit card, it’s usually important to have good credit. That’s why many consumers have worked for a long time to keep their credit score high and their history unblemished. Unfortunately, if someone with a good credit history cares deeply for someone with less than perfect credit, sometimes problems can arise.
Many people imagine that when they get married, both credit reports will somehow mold into one. But this simply isn’t true. For the most part, your significant others’ credit score will not affect yours, even after your nuptials. Credit scores are individual and credit bureaus don’t mix credit histories together.
That being said, if you marry someone with a lower credit score, it can affect your approval process for new types of credit, especially large loans. For instance, if you get married and decide to apply for a mortgage loan for a house, both of your credit reports will be requested by the lender. If your spouse has a bad credit score, you may find it difficult to get approved. The loan’s interest rate will likely be higher. And unfortunately, being approved for a mortgage on just one income is often not an option, so you can’t simply remove one of the scores.
Of course, there are always options for credit that don’t require two spotless credit histories. Personal loans can be taken out by one person, as can small business loans and most credit cards. Other types of credit, such as short term cash loans, (sometimes called ‘payday loans’), often don’t require even one good credit report for approval. Many online participating lenders in Money Mutual’s network, for instance, will only ask if you have steady employment.
However, in order to take out big loans, such as mortgages, you will need to supply credit reports. So, be sure to discuss finances well before you apply for any large loans or lines of credit. While things like a low credit score certainly shouldn’t make you change your mind about marrying someone, it is an important thing to know in advance. If you don’t know about the problem, there’s no way to fix it. Find out if the bad credit is due to an isolated past problem or an ongoing issue. If it was due to a period of unemployment or illness, and they have had a good payment history since, then the credit score will simply improve over time. If it’s been an ongoing issue, maybe they need some help keeping their debt repayment on track, or understanding what it means to live within their means.
And remember, in any relationship, it’s always important to talk about money. Knowing your significant other’s credit history and attitude toward money can keep your finances and your relationship on solid ground after you’re married.
