A lender or broker may consider your marital status as it affects the creditor's ability to reach the property in the event of nonpayment. For example, for mortgage and home equity loans, a creditor could consider whether your spouse has an interest in the property that is being offered as collateral for the loan.
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.
A creditor such as a lender or dealer cannot discriminate on the basis of sex (including sexual orientation and gender identity) or marital status.
The Federal Equal Credit Opportunity Act prohibits creditors from discriminating against credit applicants on the basis of race, color, religion, national origin, sex, marital status, age (provided the applicant has the capacity to enter into a binding contract); because all or part of the applicant's income derives ...
FALSE. Credit scores aren't impacted in any way just from tying the knot.
If the credit transaction is to be secured, the bank may ask the applicant's marital status.
Key Takeaways. Mortgage lenders can ask applicants a range of questions about their finances. Lenders often want to learn more about your income, assets, debts, and credit history. Mortgage lenders are also legally allowed to ask about an applicant's ethnicity and marital or divorce status.
If an applicant applies for individual unsecured credit, a creditor shall not inquire about the applicant's marital status unless the applicant resides in a community property state or is relying on property located in such a state as a basis for repayment of the credit requested.
You can use someone else's income for a loan only if they agree to become a co-borrower on the loan. That gives them equal ownership of the funds, and also equal responsibility for paying back the loan.
If an applicant is seeking any form of individual unsecured credit, the creditor may not inquire as to the applicant's marital status. The creditor also may not inquire as to whether any stated income is derived from alimony, child support, or separate maintenance payments.
Marriage does not affect whether or not you can qualify for a mortgage. A married couple might have an advantage, though, by being able to include two incomes and two credit histories in their loan application. The Loan Agreement would make both spouses responsible for paying back the loan.
Marriage is more than a romantic union between you and the person of your dreams. It's also a legal agreement, which means telling your financial institutions, your employer and the many other companies you do business with about your new status.
Lenders have to be careful when talking to a potential borrower about their marital status. They can't ask you whether you're single, divorced or widowed. Instead, they can only ask if you're married, unmarried or separated.
The Influence of Marriage on Your Mortgage
Marriage can significantly impact your mortgage in various ways. One of the most common is the ability to apply for a joint mortgage. This allows both spouses to combine their incomes, potentially qualifying for a larger loan.
Employers in California are prohibited from asking certain types of questions during a job interview, including questions about an applicant's or marital status.
prohibits creditors from discriminating against credit applicants on the basis of race, color, religion, national origin, sex, marital status, age, because an applicant receives income from a public assistance program, or because an applicant has in good faith exercised any right under the Consumer Credit Protection ...
Whether you are single, married, divorced, or widowed, is off-limits for lenders. They also cannot inquire about your family status, including whether you have children, are planning to have children, or are pregnant.
The following pre-employment inquiries may be regarded as evidence of intent to discriminate when asked in the pre-employment context: Whether applicant is pregnant. Marital status of applicant or whether applicant plans to marry. Number and age of children or future child bearing plans.
Lenders are permitted, and even required, to ask about your marital status. However, they have to be careful about how they ask. Mortgage lenders cannot ask you whether you're single, divorced or widowed. They can only ask if you're married, unmarried or separated.
When an applicant applies for individual credit, the creditor may not ask the applicant's marital status. There are two exceptions to this rule: (1) If the credit transaction is to be secured. (2) Resides in a community property state or lists assets to support the debt that are located in such state.
Several other states ban marital status discrimination, including California, Connecticut, Florida, Delaware, Illinois, and Washington. Other states ban discrimination because of someone's familial status or parental status, including Pennsylvania and Texas.
Any debt you have before marriage remains separate, unless you add your partner as a cosigner. And debts incurred after you're married that you hold jointly can affect both spouses' credit scores. Common examples of these are mortgages and auto loans.