“High levels of credit card debt play havoc in the lives of newly married couples,” Wilcox said. “Debt is associated with less time spent together, more fighting, and significantly lower levels of marital happiness.”
Your spouse's bad debt shouldn't have an effect on your own credit score, unless the debt is in both your names. If you've taken out a credit agreement together, for example, on a mortgage or joint credit card, then your partner will be listed on your credit report as a financial associate.
Be honest and upfront about your financial past
At the start of any serious relationship, it's an idea for both sides to be open and honest about their financial history. Get everything on the table. This will reduce the risk of any nasty surprises when it comes time to apply for pre-approval for a loan.
Debt can be a source of stress in any relationship and a catalyst for breaking up. According to USA Daily News, almost 50% of Americans believe debt to be a significant contributing factor to breaking up, including divorce. However, it is crucial to note that debt alone isn't a reason for separating.
Financial infidelity happens when you or your spouse intentionally lie about money. When you deliberately choose not to tell the truth about your spending habits (no matter how big or small), that is financial infidelity.
Marrying a person with a bad credit history won't affect your own credit record. You and your spouse will continue to have separate credit reports after you marry. However, any debts that you take on jointly will be reported on both your and your spouse's credit reports.
Accessing a credit report that is not your own could be a form of fraud or identity theft. There is no exception for spouses. That's because some people view sharing such information as an invasion of privacy even if they're married. “It's not yours to take,” McClary says.
So credit histories and scores don't combine when you get married. And how your spouse uses their individual credit accounts can't impact your individual credit accounts. But if you have a shared account or you're an authorized user of your spouse's account, you could affect each other's scores.
You are not responsible for someone else's debt. When someone dies with an unpaid debt, if the debt needs to be paid, it should be paid from any money or property they left behind according to state law. This is often called their estate.
You're only ever accountable for a debt you agree to pay. If your partner is in debt, you may wish to help. However, if you separate or your spouse passes away, you're not responsible for their debt. The only instances where you're legally bound to pay are for joint accounts or where you've signed as a guarantor.
Not to worry, a prenup can protect you against your partner's poor debt decisions. How? Well, you can make sure to outline in your prenup that all premarital debt (debt accrued before the marriage) and marital debt (debt accrued during the marriage) remain the person who borrowed its debt.
86% of couples who got married in the last five years started out in debt. The higher a couple's debt burden, the more likely they are to argue about money. Couples in healthy marriages are much more likely to talk about their money dreams and make long-term money goals.
In an ideal partnership, if both the spouses are earning, they should contribute to the household expenses or finance joint assets in the proportion that they earn.
In some circumstances, government agencies may request your credit report without your permission. In general, an average citizen cannot check someone else's credit report unless they are serving as a legal proxy.
When applying jointly, lenders use the lowest credit score of the two borrowers. So, if your median score is a 780 but your partner's is a 620, lenders will base interest rates off that lower score.
Any debt you have before marriage remains separate, unless you add your partner as a cosigner. And debts incurred after you're married that you hold jointly can affect both spouses' credit scores. Common examples of these are mortgages and auto loans.
The base FICO® Scores range from 300 to 850, and a good credit score is between 670 and 739 within that range.
If your credit score lands between 300 and 579, it is considered poor, therefore lenders may see you as a risk. Here's how the FICO credit scoring system ranks credit scores: Poor: 300-579. Fair: 580-669. Good: 670-739.
Micro cheating refers to acts of seemingly trivial, inappropriate behaviors that occur outside of one's devoted relationship, often done unintentionally.
Lying to your partner
Lying to or hiding things from your partner is a sure-shot way to ruin your relationship. Even if you're doing it to protect them, keeping little things from the person you love can grow into huge problems and cause trust issues.