Marriage & Financial Planning: Advantages of Two Incomes Outweigh Risks

Published on Jul 23, 2014 10:40 am

Financial planning for married people presents both opportunities and risks. Pooling the resources of two people to cover a single set of expenses can lead to savings while also bringing the benefit of being able to potentially present a stronger combined front to lenders when applying for credit. While financial planning for a couple can be more challenging than doing it for a single person, the extra financial resources can make it easier to achieve your goals.

Paying for School

Being married can make paying for school easier. While federal loans aren’t based on credit scores or income, private student loans are, and having two credit reports and potentially two incomes to draw from may make qualifying for student loans more likely. You might also be able to borrow less to go to school. Single students have to find a way to pay tuition, fees, books and living expenses while attending school, while a married student’s working spouse may be able to help pay some of those bills out of his or her wages.

Taking Out Car Loans

Married couples that choose to apply for car loans may together have two advantages. If you and your spouse decide to apply for an auto loan jointly, a lender may look at the partner with a stronger score, or at least take it into account when determining how much to lend and what interest rate to charge. You may also include both of your incomes on the loan application. The higher income may make you a more attractive borrower and qualify you for a better loan.

Getting a Mortgage

Several factors are considered when a couple applies for a mortgage loan including income, credit and the amount the couple can put down on the house. If both you and your partner have good credit, your odds of qualifying for a mortgage loan usually improve when you apply as a couple. As a married couple, your combined income might also help qualify for a better loan and be able to put down a better down payment.

Saving for Your Future

As a retiring married couple, many of the benefits that you receive during your working life continue into retirement. Those benefits make retirement less expensive and also allow you to set more money aside for a better retirement. Having more money when you go into retirement can reduce the risk of running out of it.  Needless to say, when your finances are well-managed, there’s a strong likelihood that good credit will follow close behind.

About the Author
Steve Lander has been a writer since 1996, with experience in the fields of financial services, real estate and technology. Lander holds a Bachelor of Arts in political science from Columbia University.

This article is provided for general guidance and information. It is not intended as, nor should it be construed to be, legal, financial or other professional advice. Please consult with your attorney or financial advisor to discuss any legal or financial issues involved with credit decisions.

Published by permission from, Inc., an Experian company.   © 2014, Inc.  All rights reserved.

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