Many Pennsylvania borrowers who carry a consumer debt burden worry about the implications of those financial decisions when they get married. Indeed, marriage can bring an entirely new slant to your existing financial picture, with the potential for each person's credit score to affect the other. Pennsylvania residents who are considering marriage after accumulating some credit card debt need to understand the way these debts will affect both parties' credit histories.
Some newlyweds who have gone through a personal bankruptcy in the past may be looking to improve their credit score by joining their spouse's credit cards. Spouses can add each other as authorized users; for example, if a husband had an existing credit card, he could expand the account to include his new wife. This change would almost certainly improve the credit score of someone who recently declared bankruptcy, especially if the spouse's debt to credit ratio is particularly low.
In addition, if the spouse with poor credit chooses to add his or her beau to existing cards, it should not lower that person's good credit rating, so long as some cards are left with low balances. In other words, it is almost always a good idea to add your spouse as an authorized user on your cards if one person has a high score - and assuming that both parties have some cards with low or zero balances.
Enhancing your credit score through marriage can have implications for your ability to purchase a home, for example. As long as both spouses are making on-time payments on their credit accounts, they are likely to obtain better loan rates. Spouses who have declared bankruptcy would be wise to consider waiting to purchase a home, however, as their credit score will only increase as the months pass since the debt discharge.
Wedding bells can actually help ring up your credit score, so long as you plan ahead. Qualified financial planners can help couples learn more about their options, even if their financial history has included bankruptcy.
www.foxbusiness.com, "Adding a spouse as authorized card user to boost score" Jane McNamara, Oct. 29, 2013