Could Your Credit Score End Your Marriage?

Finances may be the least sexy part of a romantic relationship. But itโ€™s one of the most important, and no one accepts a marriage proposal with the words, โ€œYes! I canโ€™t wait to have a joint checking account with you.โ€ Nor do college sweethearts usually review their student loan debts while strolling campus, hand in hand.

Among many other things, couples should make time to discuss personal finance โ€” the earlier, the better. Couples with a greater disparity in their credit scores are more likely to break up, according to preliminary results of a study by Federal Reserve Board researchers.

The draft of the paper, called โ€œHousehold Formation, Credit, and Trustworthinessโ€ analyzes the individual and household credit scores of about 35,000 married and cohabitating couples from 1999 through 2012. It outlined credit score match quality, or the difference in partnersโ€™ credit scores at the time they move in together, and the researchers found that credit score match quality is a strong indicator of whether or not the household remains intact.

Though the researchers will further explore the data and their conclusions in a future draft, they said the relationship between credit score match quality and household breakups is โ€œquite strong.โ€

Bridging the Credit Score Gap

Itโ€™s not that people should bring copies of their annual credit reports on dates, but as a relationship gets more serious, the depth of financial conversations should also grow.

A good first step โ€” does your partner know what a credit score is? Before you can get into someone elseโ€™s finances, take stock of your own with Credit.comโ€™s free Credit Report Card. Once you see where you stand, itโ€™s time to see how you and your significant otherโ€™s credit histories match.

But a huge credit score gap isnโ€™t a death sentence for your relationship. (On the other hand, if youโ€™re looking for a reason to end it, youโ€™re welcome.) While the study says those with a like-minded approach to money management are more likely to stay together, there are ways to build credit so the disparity isnโ€™t as large.

If there are large differences to overcome, seeking outside advice might be a good idea, especially if one spouse isnโ€™t thrilled about role-playing as a financial counselor.

Image: Zoonar

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