Free Case Evaluation

 
 
X Close
Phone Call Us 414-326-9231
608-260-7133
Toll Free 866-678-9352
Text Us 414-277-7742
You can also feel free to text us at 414-277-7742 to set up your FREE appointment with our attorneys today

How a spouse’s poor credit can spoil your plans

Most people fall in love and plan on getting married without ever asking for one another’s credit score. However, marrying an individual with a poor credit score or a history of bankruptcy or foreclosure can lead to some unexpected consequences such as not being able to qualify for a mortgage.

This weekend, USA TODAY featured an article making a little-known but important point about credit scores. The article said that as soon as a marriage begins, your spouse’s credit score can have a significant effect on your financial opportunities.

Although each spouse retains their individual credit score after a marriage begins, the scores become intertwined like many other parts of a couple’s life. That means even if one spouse has a good credit score, the other spouse’s poor credit score can stand in the way of qualifying for a mortgage or locking in a good interest rate.

When you apply for a mortgage, for example, the lender decides whether you qualify for a loan and how much that loan should be for based on your stable income amount and your credit history. Both spouses are often included on the loan application so that a larger income can be considered.

But the plan can backfire if one of the spouses has poor credit or went through bankruptcy or foreclosure at some point in the past. If one spouse has poor credit, the qualifying interest rate is going to be higher even if the other spouse has good credit.

Worse yet, lenders have required wait periods for consumers who have been through bankruptcy or foreclosure before they can qualify for a mortgage again, which can be several years.

Of course, it’s possible to qualify for a loan with only one spouse’s credit history being considered, but that would mean that only that spouse’s income could be considered.

Ultimately, credit restoration is a good idea for spouses who don’t want their poor credit to stand in the way of qualifying for a mortgage or a good interest rate with their new husband or wife.

No Comments

Leave a comment
Comment Information

Contact Our Milwaukee Law Firm

Reach Miller & Miller Law, LLC, online or call us at 414-326-9231 to schedule a free initial consultation. Our law office also provides Spanish language services. Se habla español.

To schedule an initial consultation, call 414-326-9231 or contact Miller & Miller today.

Free Case Evaluation

* indicates required field

 
 

Milwaukee Office
633 W Wisconsin Ave, Suite 500
Milwaukee, WI 53203

Phone: 414-312-6581
Fax: 414-277-1303
Milwaukee Law Office Map

Kenosha Office
6123 Green Bay Road
Suite 210
Kenosha, WI 53142

Phone: 262-326-1669
Kenosha Law Office Map

Brookfield Office
200 S. Executive Drive
Suite 101
Brookfield, WI 53005

Phone: 262-261-0665
Brookfield Law Office Map

Madison Office
2810 Crossroads Drive
Suite 4001
Madison, WI 53718

Phone: 608-260-7133
Madison Law Office Map