When we think about forming a romantic relationship with someone, it is unlikely that the first thought that comes to mind to bring up will involve the question, ‘what is your credit score?’ While you may have other important details to discover about each other that will come first – it doesn’t mean that knowing a bit about how they manage their finances should necessarily be excluded altogether.
Perhaps, as couples grow more committed to one another, this is when having a discussion regarding this topic may be a more appropriate time to explore. While sure, these conversations can be difficult and even awkward to navigate, if a relationship becomes more serious and is heading towards a more longterm partnership — it is important to keep in mind that having bad credit can have an impact on this relationship in the future.
Here are 3 scenarios you may find yourself in when bad credit is a factor in your relationship.
1) That time when . . . one partner’s bad credit score affected the other’s credit score
While it is true that an individual’s credit scores and histories will remain separate when it comes to having their own account and loans, however as they move towards joint accounts and applying for loans together, both credits score WILL be used to determine their ability to gain loan approval.
In the event this debt is significant on either side, then a very bad credit score can mean that future loans may be out of reach. If they are however able to take out a loan together, whether that being for vehicle financing or a mortgage for example, then loan features, such as interest rates and terms are not likely to be as favourable.
Furthermore, if a couple has a goal to purchase a home or buy a car together, then a bad debt situation can certainly impede these transactions. If this is a milestone a couple wants to achieve together and one person’s debt is causing a road block of sorts, the relationship could experience some challenges, and negative feeling such as resentment, blame, and disappointment may come into play.
2) That time when . . . it was difficult to rent an apartment together
Since applying for a loan, especially a mortgage can be a challenge when one or both partners have bad credit, one may think that this would not apply when a couple decides to rent versus buy? While under certain circumstances renting may see like a less financially demanding course of action, it may actually prove to be quite difficult to achieve when one partner has bad credit.
In many cases, this is because landlords may actually be quite restrictive about who they are willing to rent to. While it is common for first and last month’s rent to be paid upfront, many landlords however, will also want to see that potential renters are able to continue to pay from month to month. With that being said, all renters may be asked to provide pay stubs, as well as credit reports to indicate their payment abilities over time. In the event one partner has a poor credit rating, the landlord may end up rejecting both partners as tenants.
Since searching for a place to live can be stressful in the best of circumstances, with the possibility of being rejected as renters as the result of one partner’s bad credit score, the potential for tension and conflict in the relationship could definitely arise.
3) That time when . . . partners supported each other through a negative credit situation.
Last but not least, here is a ‘best case scenario situation’ to balance the scales a bit. While it is not intended to make light or minimize the negative impacts that bad credit can have on a relationship, still it is important to remember that a negative situation CAN be turned around and made to have a positive impact on a couple’s relationship.
In relationships, it can be common for one partner to be more financially responsible than the other. While this can lead to conflict and obstacles in the relationship, in the end it doesn’t always have to work out that way. Instead, by choosing to approach the situation together and support each other in each and every financial goals as if both couples had the most perfect of credit situations, it is possible to survive bad credit.
The reality of it is, is that financial matters are a huge source of conflict between many couples each year. While one bad credit score can limit an individual’s financial options, it can also affect the financial future of their partner. However, a couple can move beyond these challenges by being upfront and honest with one another and by working together to find a solution. If one partner is struggling, the other can try to be patient and help their partner to improve their credit score by looking for effective tools and resources to lessen their debt and rebuild their credit.
This course of action can start with taking steps to become informed of their current credit score status and details. Consistently monitoring their credit report can help them stay up to date with any changes to their score. Being informed from the moment some aspect of their credit score changes can enable them to take action as soon as possible in order to get their credit back to where it needs to be, so that a financially sound and happy life is theirs to share alongside their partner.
