Debunking Myths About Couples and Credit

Of course, a divorce could put you in a worse economic position, especially if you were a stay-at-home mom, but your marriage doesn't automatically change the credit profile -- good or bad -- you established as a single woman.

Here are some other credit misconceptions couples have:

Myth: When you get married, your spouse's bad credit history automatically affects your own.

Truth: Couples don't have joint credit scores or credit reports. You are scored based solely on information in your individual credit files. Your credit files aren't merged after a marriage.

Therefore, if you marry a credit-challenged man, you don't inherit his bad credit unless you co-sign with him for new debt or become joint credit account holders. Likewise, your own bad credit doesn't instantly improve if you join financial forces with a better credit catch.

Actually, a woman who marries a man with good credit and who benefits from his good history because he put her on his accounts while married might actually end up in a better credit position after a divorce.

Myth: The best way to help your spouse build a better credit history is to make him an authorized user on your account.

Truth: Adding your husband as an authorized user can help him build a good credit history (provided you handle the account well).

If the creditor is reporting that shared account to at least one credit-reporting agency, the account will show up equally on the credit report of both the primary user and the authorized user, Watts said.

However, here's something you should understand about allowing someone to become an authorized user. They get their own card with their name on it. They can use it whenever they want (at least up to the credit limit). The past and future history of the card usage gets reported on their credit file and yours.

But -- this is a big but -- only the person who opened the account is liable for paying off the debt.

If you want your husband to be held responsible for credit charges (and he should be), don't just make him an authorized user. Make him a co-signer.