5 Credit Building Tips for Couples

By Bethany Hickey

Your credit scores don’t care if you’re married — but how you and your love manage your finances can make or break your individual credit histories. Whether you’re a newlywed couple or you’ve been married for 20 years, there are things you can do to build credit together.

Married or single: Credit scores don’t actually care

You and your spouse’s credit scores and histories don’t merge when you get married. Each of you continues to have separate credit reports, which are used to generate your credit scores. So, if you have your own credit card, your payment history only affects your credit score.

However, your credit reports could become similar over time. For example, say you were to buy a house together as co-borrowers. The mortgage’s payment history will show on both of your credit reports.

With that in mind, there are still things you can do together to create healthy credit histories for both of you.

1. Consider a joint bank account

A joint account won’t impact your credit score directly, but it can help you stay organized. You can use the joint account to pay shared bills and maintain financial transparency. With two sets of eyes on the account and both spouses contributing, it can help you stay on top of bills to avoid pesky late payments that can hurt your credit scores.

That’s not to say you have to close your personal checking account. In fact, I’d recommend each spouse keep a separate account for individual spending and for keeping things like Valentine’s Day presents a surprise.

2. Authorized users on credit cards

If one of you has bad credit, the spouse with good credit can help by adding them as an authorized user on their credit card. With both of you on the account, on-time payments will be reported on both credit reports.

Just remember that the primary credit card owner is solely responsible for payments and maintaining a positive payment history. If you owe more than 30% of the credit limit or you’re late on payments, both credit scores can take a hit. Be sure to have a conversation with your spouse about using the card carefully, because two people on one credit card could easily lead to trouble and debt.

3. Check out secured credit cards

Secured credit cards are a great way to get introduced to revolving credit and boost your credit scores. These cards are backed by a security deposit that also sets the credit limit. And since they have a security deposit, they’re much easier to qualify for than traditional unsecured credit cards.

Secured cards can improve your credit history just like regular credit cards, and they tend to have lower credit limits, which can also help avoid excessive debt. Many cards, such as the Discover It Secured card, even offer the ability to upgrade to an unsecured credit card after seven months, and you may earn your initial deposit back.

4. Credit-building debit cards

Similar to unsecured credit cards, debit-credit cards are a type of secured line of credit. These cards are backed by an account instead of a cash deposit. The amount in your linked account determines the card’s spending limit.

Most debit-credit cards don’t charge interest or check your credit when you apply. These cards can get away with no APR because they don’t allow you to carry a balance over each month. Plus, most offer daily or weekly autopay. However, these cards aren’t suited for emergencies or large purchases, and they don’t report credit utilization because there’s no set credit limit.

5. Apply for loans together

If one of you has good credit but the other’s credit is so-so, you can help each other qualify for loans. Similar to making your spouse an authorized user on a credit card, your spouse can use you as a cosigner to help increase their approval odds for new credit. This is commonly done with large loans, such as mortgages or auto loans. As a cosigner, your credit score is what’s used to meet credit score requirements, and the lender reports the loan to both of your credit reports.

Just be mindful if you become a cosigner. The primary borrower is responsible for making payments, and the repayment history impacts both the cosigner and primary borrower. Also, refinancing is typically the only way to get out of being a cosigner.

Bottom line

Building credit with your sweetheart can be easier if you do it together. By leveraging one spouse’s good credit score and joining shared finances together to avoid missed payments, you could see a boost in your individual credit scores. Having good credit can yield lower interest rates on loans, get you larger loan amounts and overall increase your chances of qualifying for new credit when you need it.

Bethany Hickey is a personal finance writer at Finder, specializing in banking, lending, insurance, and crypto. Bethany’s expertise in personal finance has garnered recognition from esteemed media outlets, such as Nasdaq, MSN, Yahoo Finance and AOL. Her articles offer practical financial strategies to Americans, empowering them to make decisions that meet their financial goals. Her past work includes articles on generational spending and saving habits, lending, budgeting and managing debt. Before joining Finder, she was a content manager where she wrote hundreds of articles and news pieces on auto financing and credit repair for CarsDirect, Auto Credit Express and The Car Connection, among others. Bethany holds a BA in English from the University of Michigan-Flint, and was poetry editor for the university’s Qua Literary and Fine Arts Magazine.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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