Debunking 3 Common Credit Myths: Couples Edition

Myth #1: My credit report information will merge with my spouse’s.

Nothing will happen to your credit after you exchange your “I dos”. Credit reports generated by Credit Bureau Singapore are maintained at the individual consumer level, not at a joint or family level. This means everyone has their own personal credit report and credit score till death do you part.

Each individual will have to maintain their own scores throughout marriage. Each spouses’ credit score will continue to be calculated based on the information in his or her own credit report. If your spouse has a bad credit history of missed payments on his or her credit card bills, it will not affect your credit score. However, your score will be impacted if you become an authorised user or a joint account holder.

Related: Why Your Credit Health Matters And How It Affects You At Different Life Stages

Myth #2: Our credit cards and banking loans are now joint accounts.

When you get married, there is no “rule” that all of your existing accounts will be converted into joint accounts. Your spouse’s credit history will not appear on your credit report and your credit information will also not appear on your spouse’s. If you decide to apply jointly for credit like credit cards or home loans, then those accounts will show up on both of your credit reports.

In this case, both parties are fully liable for making payments and equally at risk if the account goes into default. If an account has only one authorised user, the primary account holder is fully responsible for all outstanding balances.

Related: Why You Should Avoid the Monthly Minimum Credit Card Payment Trap

Myth #3: My bad credit will not affect my spouse’s credit score.

If you are applying for a supplementary card for your spouse, you are primarily responsible for the usage and payments due on the supplementary cards. The credit report will only show the factual credit data available of the principal cardholders. The credit history and repayment behaviour of supplementary card holders will not affect the principal cardholders.

However, if you have a joint credit account with your spouse, both of you are responsible for all debt incurred in any joint credit accounts. Regardless of who incurs the debt, a missed payment on a joint account will negatively affect both of your records.

Related: Financial Planning Tips for Newly Married Couples in Singapore

The key to successful credit management as a couple is understanding that your individual credit repayment behaviour can affect both of you. It is important to understand the possible implications that may arise from having a joint account together. At the same time, do consider how the payments stemming from a major credit purchase will affect your overall budget. Most importantly, be fully in the know about each other’s financial history and everything that could affect your joint future together.

If you have applied for a new credit facility in the last 30 days with any of CBS members banks, you can receive a complimentary copy of your credit report from CBS. Otherwise, you can purchase your report online to understand your credit report better.

Read More:

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• How to Plan Your Dream Wedding And Stay Within Budget
• Smart Ways to Clear Your Debt Fast and Become Debt-Free in Singapore
• Should You Pay Your Rent with a Credit Card?
• What Are the Risks of Credit Card Churning?

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