Getting Married To Your Sweetheart’s Credit Cards Part 2
written by Credit-HQ ExpertWhen it comes to changing the credit picture of each spouse, you might consider the old adage that goes, “If it ain’t broke, don’t fix it.” After all, when you were single people, you each kept and maintained separate credit accounts. Keeping separate credit cards after the marriage vows are exchanged does not make you less married or less in love. And by maintaining separate credit accounts, you both are responsible for how you use those cards and you continue to build your separate credit histories like you were used to before the wedding.
When that credit card bill comes, the credit card company expects the owner of the account to make that payment. How well you keep up with the payments on that credit card and all other aspects of the management of that card is reflected on the card owner’s credit history only, not on the spouses credit profile. So when it comes to the credit cards that came into the marriage with you, to the bank that services that card, its just you and them.
Those facts are good arguments for some amount of separation of credit use between the spouses. But there are some strong arguments for beginning to handle credit as a family as well. You will be buying some things together and some of those purchases will be large. If you buy a car or a piano for the family, the question comes up which of your credit accounts to use considering that increased balance will impact the credit score of the individual spouse, not the married unit.
The purchase of large ticket items will continue to occur throughout your marriage life so you need to be comfortable with how you do the financing. For example, when you buy your first house together, that is an exciting event. But the mortgage company does not look at you as two separate individuals. You are buying that house together so the mortgage company will examine both of your credit scores and your credit history to determine if you get that loan. So the credit profile of your spouse and yours to him or her is definitely community property in this case. Your use of credit will impact each other. So you might as well starting thinking about credit as a team just like everything else in life.
New Joint Accounts – A Nice Compromise
An option that fits a lot of newly married couples is to leave your pre-existing accounts alone but to take out a joint credit card account. Unlike becoming authorized users of each others accounts, a joint account means both of your credit scores are evaluated by the credit card company and you are both full owners of the account with full responsibility for making the payments each month.
In every way, becoming partners on a joint credit account merges you into one financial entity. If you handle the account well, both of you see your credit scores go up. If you don’t make payments on time or otherwise abuse the account, both of your credit profiles are damaged equally. Just taking out that joint credit account is like getting married in the eyes of the credit card people because you become a single financial unit, not two individuals. So be careful how you handle this shared resource.
The shared account is a good way to purchase goods and services that are strictly for the family. You can use it to buy things for your home both of you use or to pay for repairs for cars that you both own together. This step acknowledges that you are not two people but a family now and your finances behave like a family unit as well.
But when you make this big step of beginning to share a credit card account, include that account in with a new scheme for handling your family budget and bills. In most families, the spouse who is best at keeping books pays the bills. But be “on the same page” about who will make sure that shared credit card is paid off each month. It is wise to have a family financial meeting to go over how things are going so that the use of that joint credit card doesn’t create tension in the family. But if you come up with a financial management plan for your credit cards, your bank accounts and every other aspect of your shared financial life, that is one more step toward marital bliss.
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