What according to you is the key of a successful marriage? For some, it’s mutual understanding, some people count on better communication and some credit the ability to compromise. Yes, they all are undeniably essential for a successful marriage but there are other essential financial factors that can make a difference to your married life. For instance, there is credit score.
Most people don’t even think of checking credit score compatibility before tying the knot. This is because people don’t realize exactly how the three digit number called credit score can cut the marital bliss short.
Credit Score and Marriage – What’s the Connection?
Finance management is a daunting task. You can hate it but you can’t ignore it. Your credit history is also an imperative part of finance management. When you get married, you’re supposed to share the financial responsibilities with your spouse and manage the things together. Each one of the couple must be aware of one another’s financial standing and credit history. But most of the time it doesn’t happen. As a consequence, financial issues tear couples apart.
As per the research of Federal Reserve Board, couples with huge difference in credit score, are more likely to opt for divorce. The reason clearly is the financial difference. For instance, if your spouse has a very low credit score, then it simply testifies poor financial condition and lack of credibility. in such a circumstance, living with a financially irresponsible person can be really tough and ultimately your marriage will suffer.
So How Do The Partners’ Credit Scores Affect Each Other?
Is your partner struggling to cope up with low credit score? Don’t worry you won’t have to share the struggle with your partner. Your spouse’s poor credit rating won’t affect your individual credit score much. If you’ve a good credit score, then you don’t need to worry at all until you apply for a joint account or plan to take out a loan together.
As far as the credit rating system Equal Credit Opportunity Act (ECOA) is concerned, your marital status is not at all a deciding factor. Similarly, any creditor or even employer isn’t allowed to extend credit according to your marital status. But, when you’re applying for a loan or joint account with your spouse, the lender may ask you to mention your marital status. So, as an individual, your marital status won’t have any impact on your credit history.
Situation May Get Complicated If You’re Planning To Part Ways:
If your or your spouse’s poor credit score is about to end your marriage, then definitely it’s sad. However, if you’ve joint accounts or took out a loan together, then divorce may have a serious impact on your credit score. Credit scores generally reflect the actual status of your credit history.
So, if you or your spouse, anyone has poor credit history or have the habit of being late for bill payments, then you may face trouble during the separation. The classification of financial obligations won’t be easy and it may hurt your credit score to some extent.
Is it Possible To Keep Your Credit Score Safe From Marriage & Vice Versa?
Financial experts believe that married people should think twice before applying for joint accounts or taking out loan together. As your marital status will affect your credit history only when your accounts are joint. Even if you’ve any joint account or financial obligations, then it’s better to sort out the issues before filing divorce. Contact your creditor to transfer the debt to the responsible person’s account.
It’s also essential to manage the joint accounts as well. You can either close the accounts or request the bank to remove your spouse’s name as the authorized user. The due bills that you and your spouse are supposed to pay off jointly must be cleared off as early as possible. If your partner has the habit of accumulating debt, then make sure to inform your creditors that you’re not responsible for the debts your spouse has accumulated. This will somehow lessen the impact of divorce on your credit score.
Don’t Let Your Credit Score End Your Marriage Unceremoniously:
A poor credit score and a broken marriage – you must try to avert both. However, by repairing your credit score you can easily save your finances and marriage. Here is how you must proceed to secure both your financial and personal life:
- Adapt a responsible attitude: When you’re getting married, you must be ready to share financial responsibilities with your spouse. So, if you’ve the habit of spending without much consideration, then it’s time for you to control yourself. Follow a reasonable budget plan rigorously, pay your bills on time, opt to save more and stop borrowing unnecessarily. With these healthy habits your credit score will improve over the time.
- Inform your partner about your finances: This is an extremely important step that you must follow. You and your spouse must talk about your finances and credit histories, and you must do this even before deciding to marry. The sooner, the better. In case both of you’ve miserable financial condition, you must try to solve the problems as soon as possible. In this way, your finances and marriage both will be safe.
- Match your score with your partner’s score: After discussing your financial issues and credit history with your spouse, you’ll be able to discern whether the credit score gap is too huge or not. If your credit scores are almost the same, then that’s a good news for both of you. In case there is a huge gap, you must try to lessen that gap. Until the credit score gap reduces, try not to open any joint account. You must also avoid borrowing together. In this way your credit histories will be safe along with your marriage.
So, Just be a bit careful with your finances and share your essential financial details with your spouse. In this way, your credit score will never be able to come between you and your spouse and your married life will be happy.
Thanks for reading folks, be sure to drop by anytime and never hesitate to leave a comment below. I’d love to hear your thoughts about this! 🙂
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Hi, I’m Chris Lee. In September 2013 I decided to quit my job to focus on building up my business. Glad to say that till now all is going well and I think I made the right decision but it’s only because I have learned how to properly manage my personal finances.