Showing each other your credit score is an intimate act.
It’s like that talk with your partner about your number! You know how many people you’ve had sex with! Maybe an even deeper talk if you have an STD like herpes! Aaaawkward, but it’s true! We talk about this shit when we enter into a committed relationship. But damn the credit score reveal and money talk is hard. That’s if we have it at all!
If you don’t know what your credit score is finder.com.au is a good place to start.
Your credit score is a number that is calculated based on the information in your credit report. Your score helps banks, loan providers, telcos etc. know if you are likely to be able to repay any money they have lent you. It’s a number that is between 0 and 1200. The higher the number the more likely you are, apparently, able to repay a loan.
So, what happens if one of you has a low score?
Does it have to be a deal breaker? No, I don’t think so. If a low score or debt is kept secret, well that’s a different matter. You can repair a credit score. You can pay debt back. Just because you have a low credit score or your partner does it doesn’t mean you pull the plug on your relationship.
The credit score reveal is an honest and intimate thing to do. You are giving the person you love the full picture of your financial life and history. You are just getting to know each other and that’s what it’s all about, right!
Take this simple example. If you decide to apply for a joint mortgage to purchase a home or investment property the loan provider will look at each of your credit scores. It would be helpful if you both have the full picture of each other’s financial life before the loan provider does! Agree!
What if your partner becomes defensive about the credit score reveal.
Well, this is a red flag and if they continue to be unwilling then maybe you need to rethink your relationship. If it is too hard to end the relationship then at the very least do not make any further commitments or go into joint debt with them or guarantee any loans. Be warned though you may become liable for your partner’s debt so be very careful. A very wise friend said to me once ‘time mends a broken heart but time does not necessarily mend a broken bank balance’.
Your credit score tells part of the story of your life. It doesn’t tell the whole story.
Some places to find help or more information.
Talking about money can be really hard. If you are feeling overwhelmed, I’ve listed some organisations and websites below that could provide you with further support and information.