Avoid These 5 Credit-Damaging Risks When Combining Finances Before Marriage

Love may be unconditional, but credit is not. Partners who mingle their money often learn the hard way that being relationship-ready doesn’t necessarily mean you’re finance-ready. One late payment, one overspent account, one loan gone bad, and your credit score could suffer.

Combining finances can feel like a natural expression of commitment, just like splitting rent, opening a joint account, or co-signing on a car. But unlike married couples, unmarried partners have virtually no legal framework protecting them if things go wrong. Without the legal protections marriage affords, you’re essentially trusting your partner with your credit—and hoping for the best if things go south.

That’s not to say couples should avoid a joint financial life. Many happily unmarried couples choose to share expenses. The key is to do it with your eyes open, and a few safeguards in place.

5 Financial Pitfalls for Unmarried Couples

Co-Signing on Loans 

When you cosign a loan, you become an equal borrower in the eyes of the lender. You’re assuming equal responsibility for repayment. Late payments on the loan will hurt both of your credit scores. The loan also has its own term—so if your relationship ends, the loan doesn’t.

If you cosigned already, talk to the lender about a cosigner release option or see if you can refinance the loan under one person’s name only.

Joint Credit Cards 

Similarly, joint credit cards should be handled with caution. Late payments will ding both of your credit scores. High credit utilization hurts your scores, as well—so if your partner goes on a shopping spree, you’ll feel it, too. And closing an account after a breakup may do more harm than good, as it lowers the average age of your credit accounts. This could lower your score.

Instead of sharing a joint credit card, consider adding your partner as an authorized user on your account. You can set spending limits and alerts for this authorized user.

Shared Rent or Mortgage 

If your name is on the lease and your partner doesn’t pay the rent, you’re on the hook for the entire amount, as far as your landlord is concerned.

For unmarried couples purchasing property together, the stakes are even higher: without a legal agreement, a breakup can trigger costly disputes over equity, mortgage responsibility, and who gets to stay.

Unclear Spending Responsibilities 

When you’re sharing finances with someone, having a “we’ll sort it out later” attitude can hurt you both if one person overspends or has an irregular income.

Instead, make a plan together, and try to stick to it. Create simple rules: follow a shared monthly budget, a spending threshold that requires a check-in (say, over $50), and a clear split of who pays for what (50/50, proportional to your incomes, or simply “you cover X, I cover Y”).

Thinking Marriage Will Solve Everything

Joint finances aren’t magically erased by wedding vows. Outstanding joint debts remains on both of your records, and damaged credit doesn’t bounce back just because you wear a wedding ring. In fact, money woes are one of the top predictors of divorce—and marrying into debt can start you off on the wrong foot.

The silver lining is that marriage will allow you to file taxes together and grant you inheritance rights you would not otherwise have. But as far as credit scores and outstanding debt are concerned, getting married has no effect.

How to Share Finances Without Sharing the Blame

It’s not cynical to want to protect your credit score before merging finances with your partner. It’s smart.

If you live with your partner, a cohabitation agreement might be a smart idea. It spells out who is responsible for certain shared expenses and accounts, and what happens to those assets if you break up. It’s the unmarried equivalent of a prenuptial agreement, and it’s increasingly common.

If the Damage Is Already Done

The first step to cleaning up joint accounts is untangling them. Talk to your lender about refinancing any loans that are in both of your names into your name or your partner’s name only. Cut up that shared credit card, or freeze it (yes, literally) so you both have to authorize charges. Finally, work on rebuilding your credit with on-time payments and lowered credit utilization.

Sharing your life with someone doesn’t require sharing every financial risk. Protect your credit now, and you’ll build a stronger foundation—whether the relationship leads to the altar or not.