What Do You Mean – My Spouse and I Have Different Credit Scores?!

Getting married typically means sharing your home and your last name with your spouse. But does tying the knot indicate that you and your partner will share the same credit score?

This is question that's asked by many of our clients, so in order to do away with the confusion, we've decided to write a blog post on the issue. Most people assume that since they have joint credit cards and financial accounts with their spouse, their credit scores are likely to be the same. However, this is often not the case.

The reason behind this is that despite the fact that you are married, you and your partner have separate credit files. All the accounts that you held individually (both before and after marriage) are taken into consideration while calculating your credit score. Thus, depending on your individual credit histories, your reports may be different. Here are a few reasons why your credit score may not be the same as that of your spouse:

1. The spouse with a better payment history is likely to have a better credit report, as this is the most important factor that influences a person's credit score. If you have a history of paying late, or if you have repossession, bankruptcy or loan default on your credit report, your score may be lower than that of your spouse.
2. The amount of debt carried by an individual is the second most important factor taken into consideration while calculating credit scores. Compared to you, if your spouse carries smaller balances on his/her credit cards or pays his/her balances in full each month, he or she is likely to have a higher credit score.
3. The spouse with a longer history of credit may have a better credit score. Thus if your spouse is older than you or has more experience with credit, he or she may have a higher credit score.
4. If you have a history with various types of loans in your name, such as mortgage or auto loans, as well as credit cards, and if you handle those accounts well, your score may be higher than that of your partner. Managing a mix of different types of loans in an efficient manner leads to a better credit score.
5. Applying for new accounts leads to inquiries which may cost you a few credit points. It may even lower your credit age. Thus the spouse with newer accounts may have a lower credit score.

While making a large purchase that requires both you and your spouse to sign on the dotted line, the lender may decide to use the higher or lower of your credit scores. Alternatively, he or she may decide to use the average of your scores. You can use your spouse's income for application purposes only if both of you are applying for credit together. This is why it is advisable for both partners to have good credit scores.

If you or your partner has good credit, and if you need $50,000 – $250,000 of financing for your business, our team at Fund&Grow can help! We can help you get funds at 0% over the course of our 12-pmonth program, with no back-end fees. Fund&Grow has helped businesses in all 50 states create 0% business credit financing, and we'd like to do the same for you. Call us at (800) 996-0270 to learn more about this today!