Will They Check My Wife's Credit When I Buy a Car?

You've got your eye on a hot new set of wheels, but with your spouse's credit, you're bound to be going nowhere fast. That assumption is a common one for married couples when one comes into the union with stellar credit and the other's credit is a little lacking, but that common assumption is often a false one. Your spouse's credit doesn't have to slow your financial roll at all, and it doesn't have to be an issue when you're trying to get an auto loan. It all comes down to how you structure the deal.

Credit and Marriage

When you get married, your lives may become one, but it is another story for your credit reports. Your credit remains completely independent of your spouse's credit until you apply for joint loans. As long as you keep credit accounts in your own name only, no one running your credit will have any idea what your spouse's credit score is.

Car Loans

Securing financing for a car is all about whose Social Security number is on the loan application. Even if your spouse drove with you to the dealership, is the only one who drove during the test spin and picked out the color and upholstery, if your spouse's name and Social Security number are not on the application, your spouse's credit will not be checked.

Pros and Cons of Individual Car Loans

If your spouse has bad credit, an individual auto loan in your name only is advantageous. Even if your spouse's negative credit history does not prevent you from getting approved for a loan, it could land you with a higher interest rate than you could secure if only your own stronger credit standing was considered.

There would be a blip in the road, though, if you needed your spouse's income to be considered to qualify for the loan. If your credit is good, but your income does not meet the loan requirements, then you will need to seek a joint loan that includes your spouse's earnings. If you want to include your spouse's earnings, then they must be included on the application and the spouse's credit will be run -- for better or worse.

Getting Help

If you have the good credit for loans, but not the income, and your spouse is facing the opposite situation, consider working as a couple to improve your spouse's credit before making any large purchases. Focus on bringing delinquent accounts current, making on-time payments and paying down debt to improve the health of a credit score.