Marriage is an exciting phase and the real fun begins by planning and adding up minute details of both partners while starting a new life together. However, from a financial standpoint, it involves exciting decisions like buying a new apartment on one hand and evaluating credit scores on the other. All your financial decisions will largely depend upon your credit scores.
For the uninitiated, credit score in simple terms refer to a data-rich credit report used by financial institutions and lenders to determine the creditworthiness of an individual for a mortgage, loan or a credit card. Women often verify profession, personality, compatibility and family history of the prospective partner before committing to marriage. Fortunately, a new concept of financial compatibility is also added in the list of factors that explains the financial discipline of both partners in a relationship. Although poor credit history of an individual does not affect the credit score of the spouse since these scores are never merged or averaged during marriages, but, it certainly implies financial inconveniences. In many cases, it results in a failure to keep up with payments or to manage loans and credit.
In these conditions, people are insecure about proceeding towards situations involving mortgage loans or insurance plans. Credit reports are also evaluated to ascertain credit extension limits by employers and financial institutions. You must bear in mind that under circumstances of joint credit, credit reports of both partners are evaluated.
[Also Read: Credit Bureau – How do they help?]
It is therefore crucial that partners must know each other’s spending habits and ways of managing credit before walking down the aisle. Lack of financial discipline will create serious consequences affecting the relationship. Keep a check on your credit history as frequently as possible. This eases financial stability and future planning. Discuss your investment plans with each other along with your banker to make informed financial decisions. These discussions will help you answer critical questions such as:
- Are both of you stable financially?
- Does your credit history indicate defaults?
- Have you been paying off your loans regularly?
- Do either of you own multiple credit cards?
The above forms a valuable start point in engaging conversation on money matters. An early detection of errors, if any, will only provide further scope for improving these scores. Thus, prospective brides and grooms can take a step ahead in verifying the credit history of their spouses before deciding on marriage. Advanced mobile applications have been introduced to check and verify credit scores of individuals that are relatively simpler. It also provides a host of other verification services that helps in evaluating personality traits of individuals and embarks on a truthful relationship.