Bad credit can affect our lives in a number of ways. Persons with poor credit rating may find it difficult to get approved for a mortgage or a credit card, and their application for a job may not be considered. But is it possible that your relationship suffers as well?
Experts say it can. A survey conducted by the Money Management International reveals that love is a key factor when people consider getting married, but finances have their role as well. According to the survey of 2010, 42 percent of respondents consider that physical attractiveness is very important for a relationship to work. However, 43 percent of them will not be happy to have a partner with a high level of debt, and 40 percent prefer a spouse with good credit rating. For 52 percent of respondents, their partner’s job security is an important factor, and 35 percent prefer a partner with adequate savings. Interestingly, bad credit was seen as a more serious problem by men.
It is commonsense to avoid inheriting someone’s debts. To that, one’s credit history and level of indebtedness hints to one’s spending habits and attitude toward money. Having a bad credit tells potential partners that money will be an issue in the future. But it may not be as easy to spot the warning signs in every case. Being unable to pay the bills on time is an obvious one. Others are less subtle. If your partner has average income but rents a very expensive apartment, he/she has poor budgeting skills. So, open communication is important, be it about buying big-ticket items or planning a holiday together. If your partner leaves financial decisions on you, does not want to contribute, and avoids talking about money whatsoever, household budgeting may become a serious issue. Frequent job changes, big employment gaps, depending on one’s parents for money, and bankruptcies to top these, are all signs of not managing one’s financial situation well. No normal person is proud of these or willing to share failures. Subtle signs such as having one’s credit card denied are important.
It is a good idea to exchange credit reports, which will give you a sense of your credit compatibility. Say, you only use your credit card in emergency situations and save for major purchases. Your partner has six or seven credit cards and a second mortgage. It is not a deal breaker for sure, but where you stand on financial matters is something you should know.
Obviously, your credit score will not go down just because you married someone with poor credit. And it will not improve based on your partner’s excellent credit score. However, if you apply jointly for a loan or credit card, the lender will check both credit scores before approving the application. This is when poor financial decisions may affect your relationship. Or they may not, it all depends on your financial compatibility.
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