Does getting married affect your credit score?

In a word, no.

Standing in front of family and friends to proclaim your love, followed by a lovely reception will have no impact on your credit score. So, feel free to contact your wedding planner now.

However, it’s how couples then choose to structure their finances after marriage that can have an impact on your credit score.

Where joint accounts and credit score are concerned, it’s better to be in the know.

Why Does A Good Credit Score Matter?

How to boost your credit score

If your credit score is lower than you’d like, don’t panic – check out our previous piece on how you can improve credit score here.

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Firstly, in case you’re a newbie to the term, a credit score is a number rating that is assigned based on your financial record. The purpose of the score is to give lenders and other financial institutions an idea of how responsible you are with credit, how likely you are to continually meet your commitments, and how desirable a candidate you may be for a loan.

A good credit score matters because the vast majority of us are going to need access to credit at some point in our lives. Big ticket purchases like buying a house or a new car usually take help from a bank or lender. If your credit score isn’t as high as you’d like due to your past behaviour where credit was involved, it may be difficult for you to access credit again.

If you’re just starting out on your credit journey, here are some good practices to get into to maintain a healthy credit score:

• Make sure that you pay at least the minimum balance due on time.
• Pay down your credit card balances to keep your overall credit use low.
• Don’t make a habit of applying for credit all over the place.

How Does Marriage Affect Credit?

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While getting married in and of itself won’t affect your credit score, it’s important to understand that once married, most couples will choose to combine some elements of their finances, or begin to apply for credit together, rather than as individuals.

Before you get married, both you and your partner will have a credit score, whether healthy or unhealthy. Once married, your combined credit score may be different than what it was while single, particularly if one party had a previously unhealthy credit score.

If this is the case, it may prove difficult for you as a couple to access credit for the large life-goals you want to achieve together, like buying a family home.

It’s vitally important that before tying the knot, you and your partner have an honest conversation about money. This should be as open as possible, including

• Current financial situation – how much you both earn and have saved;
• your credit score, credit history and all current credit commitments; and
• your financial habits – whether you are spenders or savers.

Starting out this way will mean you begin married life with a clear picture of how your future together may look.

Can A Joint Account Affect Credit?

It’s extremely common for married couples to open joint transaction or savings accounts together once married.

A survey conducted by Greater Bank in 2018 into Dating and Relationship Financial Habits revealed that 45% of Australians would feel comfortable opening a joint spending account once married.

Greater Bank

Our Relationship Finance Survey Snapshot

In 2018, we did a deep dive into the way Australians view dating and relationships, and the way these are affected by finances.

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This can be for many reasons – whether the perception of ease or the intention of pooling savings together with the power of two incomes.

It’s important to note however that transaction (or checking) accounts don’t show up on your credit score, so they won’t have an impact. The exception to the rule here is if your transaction account becomes linked to repeated missed payments or unpaid debts – then this can become an issue.

It is important however that you have a frank discussion with your partner how things are going to work before opening a joint account with them. How will funds be divided? How will spending be monitored?

As revealed in our 2018 survey, financial tension can have a direct impact on the longevity of relationships.

This was evident with 42% of people who are currently divorced or separated claiming they had experienced a relationship breakdown where finances were a contributing factor.

Those who had experienced divorce were also recorded as being twice as likely to say they would never feel comfortable opening a joint bank account with a partner.

Does Marrying Someone With Bad Credit Affect Your Score?

Yes and no. While the process or getting married or being married has no direct affect on your credit score, it can affect your ability to access credit.

As we already covered, once you are married, chances are you’ll be attempting to apply for credit as joint applicants, meaning the individual credit score of both applicants will be taken into account.

Each borrower on any joint loan or account is equally responsible for repaying associated debts, so usage and payment activity on those accounts is reflected in both spouses' credit reports and scores (for better or for worse).