Lenders don't just average out your two credit scores or go with the highest one when evaluating your creditworthiness as a pair—they pay the most attention to the lowest credit score. If your credit is great but your spouse's isn't so hot,
a joint mortgage application
could be denied.
Will my partner's bad credit affect me getting a mortgage?
Most couples apply for mortgage loans jointly. …
Bad credit can be a real problem when there are joint mortgage applicants
. Typically, the lender looks at the lowest of the two credit scores when deciding what interest rate to charge, so if your spouse has bad credit, you could really get socked in that department.
Does it matter if your spouse has bad credit?
Marrying a person with a bad credit history won't affect your own credit record.
You and your spouse will continue to have separate credit reports after you marry
. However, any debts you take on jointly will be reported on both your and your spouse's credit reports.
Does your credit score go down if you marry someone with bad credit?
Getting married does not directly affect your credit scores
or your individual credit reports. Experian will continue to maintain separate credit reports for you and your new spouse. Your spouse's previous bad credit history will not be merged with your credit history.
Do lenders look at both spouses credit scores?
Lenders collect credit scores for both spouses from the three credit bureaus
, then focus on the median score for each spouse. The lower of those two scores determines the rate and terms of the loan, says Brad Sherman, a loan officer with Nationwide Mortgage Services, in Rockville, Md.
Does your spouse's debt become yours?
Debts you and your spouse incurred before marriage
remain your own individual obligations
—but you'll share responsibility for debts you take on together after the wedding.
Does living with someone with bad credit affect mine?
Generally speaking,
who you live with will not affect your credit score
, unless you are financially linked to them. Individuals who are married and have joint accounts will find that their partner's situation will be considered even if they are not applying for a joint loan or product.
What credit score does a couple need to buy a house?
The minimum credit score needed to buy a home ranges from
580 for
a Federal Housing Administration (FHA) loan to 620 for conventional loans. If you are married, both you and your spouse must meet the minimum credit score to qualify for a joint mortgage.
Do lenders look at both credit scores?
Lenders will look at both of your credit scores and histories
. The first hurdle is clearing the lender's credit score requirement. Those will vary by lender and loan type, but it's typically anywhere from a 580 for FHA financing to a 720 or higher for conventional.
Can I buy a house with a bad credit score?
Yes! It's possible to get a home loan
with a bad credit rating or bad credit score. Traditional lenders such as the banks are unlikely to consider your application, even if you have a good reason for the blemishes on your credit file.
Do lenders use credit karma scores?
More than 90% of lenders prefer the FICO scoring model, but
Credit Karma uses the Vantage 3.0 scoring model
. … Overall, your Credit Karma score is an accurate metric that will help you monitor your credit — but it might not match the FICO scores a lender looks at before giving you a loan.
Can my wife's credit card debt affect me?
You are generally not responsible for your spouse's credit card debt unless you are a co-signor for the card or it is a joint account
. However, state laws vary and divorce or the death of your spouse could also impact your liability for this debt.
Will changing my name clear my debts?
Relax: Changing
your last name will not have any effect on your credit report
. The accounts you had as a single person won't be added to your spouse's credit history, nor will theirs be added to yours. Your credit score will be affected only if you open joint credit accounts with your spouse.
Why do my wife and I have different credit scores?
Your Spouse Has Less Debt Than You
: The amount of debt you carry is the second biggest factor that goes into your credit score. If you tend to carry big balances on credit cards in your name while your spouse pays their credit card in full each month, you'll see a difference in credit scores.
Should both spouses be on house title?
It's
not recommended that you add a partner to your
property title to use the property as the collateral for a loan. This is because you'll be held fully responsible in case your partner fails to repay the home loan. In extreme cases, you can lose your property.
Can I use my wife's credit and my income to buy a house?
You can qualify for a mortgage with your own income and credit merit
, but it may be for a lesser loan amount because you can't count your spouse's income if they aren't applying for the mortgage with you.
