Credit Score Misconceptions of the Newly Married Couples:-

It has been proven that a lot of people are totally confused about their credit score. Even an expert in handling the financial issues can feel quite baffled about the credit score. But, you cannot leave all these things like the way they are without trying hard for building an idea about it.

In most cases, we know what a credit rating is and how it works. But, the lesser known area is how a good or bad credit score can affect your life in general. Among all the credit score misconceptions, most of them revolve around the life of the newlyweds. So, here are a few popular misconceptions of credit score, from which you need to stay away.

Misconception 1: The past credit of your spouse can affect your own score.

Fact: A bad financial behavior of your spouse in the past, will not possibly affect your present credit score. On the other hand, only a joint account can affect your credit score as you and your partner are sharing the same account. Thus, you need to stay extra careful, while handling the joint accounts and debts. It is quite common to have a joint account after getting married to your beloved. But don’t forget to monitor the spending habits of your spouse for detecting the unnecessary costs.

Misconception 2: Marriage will help or hurt the credit score.

Fact: The mere act of getting married has no direct connection with your credit score. If your spouse has a good reputation, it will not boost your credit score. In the same way, a bad score will not be able to affect your debts, related to credit score. The credit score of a partner does not put any impact on the credit score of the second one.

Another prevailing belief about credit score is that, high income of a spouse can boost up the credit score of the other. In reality, income is not even a part of the procedure of calculating the credit score.

Misconception 3: Your spouse has to co-sign a mortgage or car loan.

Fact: There is no need for you to co-sign a mortgage or car loan with your partner. In fact, if you have a good credit score compared to your spouse, you might not want to apply for an urgent loan together. Your partner’s low credit score might end up in preventing the best possible rates or terms, which you would probably get on your own.

However, this technique also may become a bit critical for you. As, the lender will only consider the amount of your income only at the time of approving the loan. This might also affect the amount of the loan for which you can be eligible.

Misconception 4: You will end up in merging your credit score with your better half.

Fact: This is one of the most common credit card misconceptions, which the newlyweds love-birds are having nowadays. If you are thinking that after deciding to spend your life with the person you love, the major credit bureaus will combine your credit score, then you are mistaking. Marriage might pave the way for you to take the name of your spouse, but, it has no connection with merging all your credit scores. You will definitely combine your financial needs till the extent you want to. Having a joint account will not hamper your credit score. Thus, your credit reports and scores will remain separate, even after you change your last name.

Misconception 5: A divorce decree can set me free from all liabilities.

Fact: I am not feeling too good to introduce this kind of situation, but, the high rates of divorce cases in the USA has compelled me to come forward with this topic. A whole lot of couples are choosing the path of divorce nowadays, in spite of having a joint account. Although your attorney can help you to find the way out of the mess, but there is a need for you to take the advice of a financial counselor too for separating the accounts.

The court can easily assign the responsibility of taking the charge of all household payments on a spouse, but, this will not change the terms of the original lender contract. So, a divorce decree will not be able to rescue you from your liabilities.

Tackling all your financial responsibilities along with the debts together might actually help you to strengthen your relationship. Don’t forget to have a clear discussion with your better half about your financial goals, before getting married. Most of the couples would prefer to discuss this serious issue related to finance after their honeymoon period. But, it is advised that sensitive issues like this should be discussed even before tying the knot. It can actually be a bit difficult for you to understand everything related to credit score, but, understanding the myths that surround them can clear up a great amount of mystery.

Tina Roth is an enthusiastic finance blogger who loves blogging about everything from personal finance hacks to money management and investing on her finance blog. You can reach her at @ProFinanceBlogon twitter.