{"id":5141,"date":"2019-07-09T12:17:34","date_gmt":"2019-07-09T17:17:34","guid":{"rendered":"http:\/\/www.avant.com/blog\/?p=5141"},"modified":"2022-12-07T13:49:49","modified_gmt":"2022-12-07T18:49:49","slug":"credit-scores-and-relationships-why-disclosing-it-all-only-helps","status":"publish","type":"post","link":"https:\/\/www.avant.com\/blog\/borrow\/credit-scores-and-relationships-why-disclosing-it-all-only-helps\/","title":{"rendered":"Credit Scores and Relationships: Why Disclosing It All Only Helps"},"content":{"rendered":"<p><span style=\"font-weight: 400;\">If you\u2019re taking your relationship to the next step, it\u2019s important to talk to each other about credit scores. It may not be a fun subject if your score is a little blemished, but knowing your credit scores can actually be beneficial in the long run. There are many ways you can collaborate together to pay down debt or devise a plan to improve your score.<\/span><\/p>\n<h2><b>Having Less than Perfect Credit Isn&#8217;t the End of the World<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">If you\u2019ve made some mistakes in the past, don\u2019t sweat it. There\u2019s really nothing to be ashamed of. Sometimes there are forces that are outside of our control. Whether you\u2019ve defaulted in the past or accumulated too much debt, the important thing is to make sure you have a plan to either rebuild your credit or pay down the debt. Sometimes our credit score doesn\u2019t really paint a complete picture of our <a href=\"https:\/\/www.avant.com\/blog\/borrow\/what-is-creditworthiness\/\">creditworthiness<\/a>, so having a bad credit score doesn\u2019t necessarily mean you\u2019re financially irresponsible.<\/span><\/p>\n<h2><b>Better Money Management<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">If someone is carrying a lot of debt, creating a plan to pay it off together will stop careless money management. Whether it\u2019s a one- or two- or even five-year plan, just create one and stick with it! The last thing you want to do is overspend by taking expensive vacations or eating out at fine restaurants too frequently. Although you\u2019ll have to cut back on a lot of your entertainment costs, worrying too much about how you\u2019re going to pay down your debt might cause too much stress in the relationship. The Federal Reserve conducted a study on credit scores and relationships and found that<\/span><a href=\"https:\/\/www.federalreserve.gov\/econresdata\/feds\/2015\/files\/2015081pap.pdf\"> <span style=\"font-weight: 400;\">financial distress often foreshadows troubled relationships<\/span><\/a><span style=\"font-weight: 400;\">.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Creating a plan to pay off debt will open up a lot of doors and lead to a healthier relationship. Together as a couple, you might find that cooking at home is actually more enjoyable than dining out. Whatever the case, having a plan will cause less stress in the relationship and pave the way toward an honest and open relationship.<\/span><\/p>\n<h2><b>Instilling Credit Education<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">Not everyone understands credit, and that\u2019s okay. Your partner might not understand how credit scores work, but you might be an expert. They may insist on closing multiple accounts but you might think it\u2019s best to keep them open. Taking a look at your partner\u2019s credit report may provide opportunities to educate them on how credit works. You might find that there are inaccuracies on their credit report or maybe they just have a thin file. Learning about each other\u2019s credit score may actually help your relationship. Aside from the fact that it builds trustworthiness and transparency, the Federal Reserve also noted the following facts:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">People with higher credit scores are more likely to form committed relationships<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">The strength of the credit score match is predictive of whether or not a couple is more likely to break up for reasons that appear to relate to finance and household spending\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Credit scores are indicative of trustworthiness in general<\/span><\/li>\n<\/ul>\n<h2><b>Applying for Financing in the Future<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">There will come a point where you will have to obtain financing for a major purchase as a couple. It can be a new apartment, a car, or even a mortgage. This is why it\u2019s important to work together from the beginning. If your partner\u2019s credit score isn\u2019t in top notch shape, creating this plan can put both of you in a position to obtain the best possible financing.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Here\u2019s an example: If you\u2019re applying for a mortgage together and need both of your incomes to qualify, the lender may take the lower credit score into account for qualifying purposes. This is why it\u2019s important to make sure both of your scores are in excellent shape since it might hinder you from getting a mortgage together in the future.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Eventually there will come a time where both partners should be transparent. It\u2019s an important step to ensure financial responsibility in the future.\u00a0<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>If you\u2019re taking your relationship to the next step, it\u2019s important to talk to each other about credit scores. It may not be a fun subject if your score is a little blemished, but knowing your credit scores can actually be beneficial in the long run. There are many ways you can collaborate together to [&hellip;]<\/p>\n","protected":false},"author":38,"featured_media":24930,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"inline_featured_image":false,"_exactmetrics_skip_tracking":false,"_exactmetrics_sitenote_active":false,"_exactmetrics_sitenote_note":"","_exactmetrics_sitenote_category":0,"ocean_post_layout":"","ocean_both_sidebars_style":"","ocean_both_sidebars_content_width":0,"ocean_both_sidebars_sidebars_width":0,"ocean_sidebar":"0","ocean_second_sidebar":"0","ocean_disable_margins":"enable","ocean_add_body_class":"","ocean_shortcode_before_top_bar":"","ocean_shortcode_after_top_bar":"","ocean_shortcode_before_header":"","ocean_shortcode_after_header":"","ocean_has_shortcode":"","ocean_shortcode_after_title":"","ocean_shortcode_before_footer_widgets":"","ocean_shortcode_after_footer_widgets":"","ocean_shortcode_before_footer_bottom":"","ocean_shortcode_after_footer_bottom":"","ocean_display_top_bar":"default","ocean_display_header":"default","ocean_header_style":"","ocean_center_header_left_menu":"0","ocean_custom_header_template":"0","ocean_custom_logo":0,"ocean_custom_retina_logo":0,"ocean_custom_logo_max_width":0,"ocean_custom_logo_tablet_max_width":0,"ocean_custom_logo_mobile_max_width":0,"ocean_custom_logo_max_height":0,"ocean_custom_logo_tablet_max_height":0,"ocean_custom_logo_mobile_max_height":0,"ocean_header_custom_menu":"0","ocean_menu_typo_font_family":"0","ocean_menu_typo_font_subset":"","ocean_menu_typo_font_size":0,"ocean_menu_typo_font_size_tablet":0,"ocean_menu_typo_font_size_mobile":0,"ocean_menu_typo_font_size_unit":"px","ocean_menu_typo_font_weight":"","ocean_menu_typo_font_weight_tablet":"","ocean_menu_typo_font_weight_mobile":"","ocean_menu_typo_transform":"","ocean_menu_typo_transform_tablet":"","ocean_menu_typo_transform_mobile":"","ocean_menu_typo_line_height":0,"ocean_menu_typo_line_height_tablet":0,"ocean_menu_typo_line_height_mobile":0,"ocean_menu_typo_line_height_unit":"","ocean_menu_typo_spacing":0,"ocean_menu_typo_spacing_tablet":0,"ocean_menu_typo_spacing_mobile":0,"ocean_menu_typo_spacing_unit":"","ocean_menu_link_color":"","ocean_menu_link_color_hover":"","ocean_menu_link_color_active":"","ocean_menu_link_background":"","ocean_menu_link_hover_background":"","ocean_menu_link_active_background":"","ocean_menu_social_links_bg":"","ocean_menu_social_hover_links_bg":"","ocean_menu_social_links_color":"","ocean_menu_social_hover_links_color":"","ocean_disable_title":"default","ocean_disable_heading":"default","ocean_post_title":"","ocean_post_subheading":"","ocean_post_title_style":"","ocean_post_title_background_color":"","ocean_post_title_background":0,"ocean_post_title_bg_image_position":"","ocean_post_title_bg_image_attachment":"","ocean_post_title_bg_image_repeat":"","ocean_post_title_bg_image_size":"","ocean_post_title_height":0,"ocean_post_title_bg_overlay":0.5,"ocean_post_title_bg_overlay_color":"","ocean_disable_breadcrumbs":"default","ocean_breadcrumbs_color":"","ocean_breadcrumbs_separator_color":"","ocean_breadcrumbs_links_color":"","ocean_breadcrumbs_links_hover_color":"","ocean_display_footer_widgets":"default","ocean_display_footer_bottom":"default","ocean_custom_footer_template":"0","ocean_post_oembed":"","ocean_post_self_hosted_media":"","ocean_post_video_embed":"","ocean_link_format":"","ocean_link_format_target":"self","ocean_quote_format":"","ocean_quote_format_link":"post","ocean_gallery_link_images":"off","ocean_gallery_id":[],"footnotes":""},"categories":[1421],"tags":[279,269],"class_list":["post-5141","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-borrow","tag-couple","tag-credit-score","entry","has-media"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v24.9 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Credit Scores and Relationships: Why Disclosing It All Only Helps - The Avant Blog<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.avant.com\/blog\/wp-json\/wp\/v2\/posts\/5141\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Credit Scores and Relationships: Why Disclosing It All Only Helps - The Avant Blog\" \/>\n<meta property=\"og:description\" content=\"If you\u2019re taking your relationship to the next step, it\u2019s important to talk to each other about credit scores. 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