Marriage, one income and credit score, what are the affects?

T90

My partner and I are due to marry late this year, we have one income, mortgage is in both our names and she stays at home as a homemaker looking after the kids. Her credit score pulled mine down when we got the mortgage in both our names, and she can't build credit, even with a credit builder card, how can we lift both our credit scores? And how will out marriage affect our one income? I'm hoping it's a case of, what's mine is yours, and she has access to everything and we avoid any tax implications, any advice is much appreciated

Fireflyaway

Congratulations! I don't think there is a quick answer. Building a credit score takes time but how important is it really? Unless you are planning to move house / need to remortgage  then I'd argue it's of little importance. Having joint finances does impact each individual person as you have already found but things will improve if you are both responsible. Marriage itself isn't going to change your credit score, your finances are already linked. 
Keep paying everything on time. Don't apply for credit or use too much available credit if you have a credit card. Pay it off in full if you do have one. Preferably don't go into overdraft. 
Is your wife's score low due to mistakes such as defaults? If so you just need to wait. If she just doesn't have a history just wait until it's good enough to get a credit card. Then buy a small thing each month and pay it in full. If your wife is on the mortgage her score should increase with it being paid on time too. 
With just one income definitely make sure you have an emergency fund just in case you lose your job or can't work. 

T90

Thanks so much Fireflyaway. We've got an emergenfy fund but we did port the mortgage so are due to remortgage in about 18 months. My partner just doesn't have a credit history, only ever had phone contract really. Good to know paying the mortgage will lift her score top though. The reason she can't get a credit card is that she has no income, would being married increase her chances as my income would be half her's, if you know what I mean? Thanks for the advice so far.

Fireflyaway

For official purposes I don't think any of your income would count as her income as technically it's your income that you are choosing to share. On any applications it will ask if you are working, if it's full of part time and what your take home pay is. Obviously your wife can't complete that section. Usually there is a household income section where she can put your income but then it's down to the company to decide if that's an acceptable circumstance under which to lend. Even if your wife doesn't have a good score, there are ways found everything. My score was terrible at one point but I got by. If you have an income and cash you don't need to borrow anyway. Re mortgaging is down to affordability not just credit score. 

T90

Thanks Fireflyaway. Much appreciated

MovingForwards

Ignore the credit score as it's not seen or used by financial institutions, only the credit history is eg payments made on time, late / missed payments, defaults, CCJs etc. Financial institutions have their own internal scoring algorithm.

You admit she does have much credit in her name eg mortgage, a phone and sub-prime CC.

Being on the electoral roll is the big one. Helps with electronic ID.

Her CC, how does she pay it off? Minimum payments or in full?

Does she have a current account in her sole name, with money going through it? If not, set one up for her.

What names are on the gas / electric / water / home phone / TV package / internet etc? Some report to the CRAs. Again, it's another line of credit being reported.

Without her 'own' income CRAs are always going to say it's bad and affects her score. They don't lend money.

On a side note. If the bills are in your name, is your wife included in what goes on with them? If not, get her involved.

Do you have sufficient insurance in case anything happens?

Your loss of income will leave your wife / kids in a very difficult situation, make sure there's enough after paying the mortgage off to cover a few years of expenditure to give your wife time to get on her feet.

Your wife's loss of time / what she does at home will cost a lot of money to cover / 'replace' eg children / cleaner / housekeeper etc and again you need time to get on your feet.

Lastly, make wills if you haven't already!

Slinky

Is she claiming child benefit? As I understand it, that will be seen as income. It's important if it's being claimed by your family and she has no other income, that she claims it rather than you, as it will help her National Insurance record and count towards her pension rights.

T90

Really appreciate the advice folks. She claims child benefit in her name. She doesn't have a CC yet, that's what we are trying to get to build up the score. We've tried for life insurance but I have a pre-existing condition and it's proving very difficult to get anywhere with it. Bills are in my name, but we are in the process of changing the utilities over as we thought that would lift her score too. As for wills, the plan is to get them sorted as soon as the COVID crisis calms down a bit more.

General_Applause

Mrs Applause was in the same situation as your wife. Got a credit card with M & S nearly three years ago, no problem.