Credit Score Basics > Does your marital status affect credit applications?

Does your marital status affect credit applications?

Marital status doesn't directly affect credit applications. Still, it can indirectly affect your credit record and how lenders perceive you.

First, some lenders may look more favourably on married applicants for a few reasons:

• Married people are more likely to have a more fixed address.
• Married people are more likely to have more than one regular income coming into the home.
• Married people are also more likely to need additional loans as the family grows – a source of revenue for banks and other lenders.

Second, things like joint mortgages or joint accounts can also create a financial association that may influence credit applications.

Still, you should keep in mind that in the UK, lenders can't directly discriminate against borrowers based on their marital status.

Factors like your actual credit history, how much you earn, and whether you have a record of repaying debt on time play a much more significant role in determining your "creditworthiness."

Why does the lender ask about my marital status?

The main reason why a lender would ask if you're married or not is to get to know you better. Most lenders must abide by KYC (Know Your Customer) and AML (Anti-Money Laundering) rules.

The same rules are why you must use a video selfie if you're opening an account with online banks like Revolut or Monzo. Or go into a bank in person if you're opening a traditional bank account.

Does getting married affect my credit score?

Getting married won't affect your credit score. In fact, none of the UK's three main credit rating agencies (Experian, Equifax, and TransUnion) mention marital status in their credit file.

And despite what you might have heard, there is no such thing as a "couple's credit score."

Your credit score will stay the same before and after the wedding. You and your spouse will also continue to have separate credit reports with your own separate credit history.

Your spouse's credit history won't appear on your credit report, either. So, if they have a poor credit history, lenders won't know just by looking at your report.

However, your partner's credit history can impact your future together – when you apply for a joint credit card or buy a house together.

In other words, getting married won't cause either of your credit scores to drop or improve. Each score will be calculated based on your individual credit reports.

Will changing my name after marriage impact my credit score?

If you notify your banks and lenders about your surname change after marriage, it will not affect your credit score.

They'll update the credit reference agencies (CRAs) for you, so you won't have to.

The CRAs will then update your credit report with your new name and list your previous name as an "alias."

What about joint mortgage applications?

One way marital status might affect your credit score is through something called "financial association."

Financial association occurs any time you open a joint bank account or apply for a joint mortgage with someone. The person doesn't need to be a spouse, but of course, this is the most common reason.

A financial association can impact you in two ways:

• First, when you apply for a joint loan, both your credit scores will be considered. So, if your spouse has a poor credit history, you could be asked to pay a higher interest rate.
• Second, how you handle this joint account will affect both of you. So, if you miss a payment for a joint mortgage, it will be marked on both your credit reports and stay there for six years.

In other words, once you're financially associated with someone (in this case, your spouse), you both become equally responsible for the joint account or loan.

It's also important to remember that you can remove a financial association—and it doesn't need to be caused by a divorce, either.

You can continue to be happily married but no longer financially associated by sending the credit reference agencies a "Notice of Disassociation". You'll also need to close any joint accounts first.

This might be really helpful if one of you has a bad credit score, for example, because of a CCJ, and wants to "shield" the other.

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