How often do you ponder the odds that you and your friend will stay together forever? Well, there’s a lot easier way. Look at your credit scores. If your parent credit score is relatively close to yours, congrats – your chances are high. But if the difference between your credit scores is 66 points and more, your relationship is 24% more likely to break up within the second, third or fourth year.
Indeed, credit scores may not be the most romantic thing to discuss on Valentine’s Day, right? Yet, it could be the first step forward in a fruitful conversation and the impact is easy to measure. Today credit is part of your personal brand and a part of your relationship. Whether you like it or not, but it’s a proven fact that people tend to form unions with partners with similar credit scores.
It’s hard to find a sphere of life where credit score isn’t a determining factor of your well-being. Employers can use your credit score against you, auto insurance companies can use it to set your rate, and even your landlord can choose to perform a background credit check. And when it comes to first dates, credit quality has become the number one subject.
According to the Credit Scores and Committed Relationship survey published by The Federal Reserve, there’s a clear correlation between credit scores and relationship stability. On top of that, higher credit scores tend to correlate with being in long-lasting, loving relationships. And there is no other way about it.
The low credit score measures the time of relationship and is highly predictive of subsequent separations. Think of a low credit score as a sign that you may be struggling with bills. As a result, your financial health impacts your household harmony, which is never great with a low credit score.
So, who would you rather date – a ‘saver’ or a ‘spender’? Nearly 69 percent of respondents choose a ‘saver’ compared to 7 percent who have nothing wrong with a ‘spender’. Now think how good is your credit and you will know what your credit score can tell others about you.
Payday Loans Affect Your Relationship
It’s hard to find a person who is debt-free, but the one who can pay his debts responsibly is a lot harder. But once you find him or her, it increases your chances of enjoying long-lasting love. To get you up to speed, as a survey report in a U.S. newspaper revealed, 9 out of 10 people consider financial security the number one priority for getting married.
Indeed, situations may be different, but an expensive purchase is one of the widespread reasons why people apply for payday loans. Whether its a mortgage or cash hiccup, payday loans can help you overcome your financial challenges, if used responsibly. On top of that, payday loans can also help improve your credit score.
Another research shows interesting numbers. For 80% of people who wouldn’t tell their partners about their debts, the number one reason is fear. They were afraid of their partners’ reactions. Well, there are many reasons why a relationship fails and the stress induced by payday loan debt is a common one.
And another research by Ringadvisors revealed how much of salary people spend on engagement ring but obviously there is usually a long way to this very ring.
Credit Card Debt is Not Romantic Either
Do you make a minimum credit payment regularly? According to the U.S. Census Bureau survey, 45 percent of respondents would not date to you.
When it comes to the credit card debt, more than 3 in 4 Americans consider it a relationship deal breaker if the balance is topped $11,525, according to personal finance site Finder.com. With 43 percent of cardholders carrying a balance each month, credit card debt came out on top. With all that said, it comes to no surprise, that credit issues may cause a significant strain and even a split.
For couples who aren’t careful, a lack of communication about financial matters can lead to relationship ruin. So, instead of just yelling and having the entire situation turning into an emotional forest fire, it’s time to get some informed debt advice. Really who said you can’t win that battle? You can benefit from choosing the right payment strategy you can manage and put you on track to zero out of debt.
Follow the 50/30/20 Rule
If you like splurging on purchase every now and again? Well, for someone that could be a thrill, yet, for 70 percent of women and 61 percent of men, that is a reason not to date. In fact, being stingy is not a solution.
For your information, 49 percent of women and 28 percent of men said they would be unlikely to date someone who is unnecessarily frugal. So, chronic overspending and unnecessary frugality are both reasons to a turnoff. And what is the way out? Well, responsible debt payment.
You don’t have to study at financial department to know how important to manage your finances in a right way. For instance, do you follow the 50/30/20 rule? If not, it’s time to get started. For many people, sticking to a structured monthly budget is the best option. In fact, it’s a great way to monitor spending and ensure a healthy cushion for a rainy day.
So, if you decided to get out of the red, remember that it’s not an easy feat. Yet, the 50/30/20 rule could be your first stop. According to it, it’s recommended to spend 50 percent of your income on needs, 30 percent on your wants, and 20 percent into your saving account.
Do you know that with credit cards, you can earn while you spend? There are some cool perks you can earn by being a responsible credit card owner. Things like points, miles, rewards, and cash back are those bonuses that allow you to build credit and make purchases online securely.
Bad Credit: It’s All About Balance
Indeed, debt may be a deal breaker at certain amounts, but balanced, healthy, respectful relationships have trust at their core. So, if you don’t trust your partner, then there’s only one way out. Yet, if you plan to build a healthy relationship, play a fair game. Start discussing dollars and cents once you are consistently dating or in a serious relationship.
Now onto the good news: Whatever your respective credit situation, it is something you can work on together with your partner, even if the odds may be against you. That’s just real life and hard work you can do to change your bad credit stories and patterns.