Student loans and bad credit scores are a serious reason for concern when dating, but once you tie the knot your finances are intertwined with your spouse whether you like it or now. Now that you’re past credit score dating, it is time for a grown-up and frank talk about your credit with your spouse.
While talking about money and credit can be awkward at first, it is an important step in solidifying your financial future and building a strong relationship with a shared understanding about money and your finances.
Why talking about credit matters
Your credit score and credit report have a massive impact on your personal finances. The difference between a good and bad credit score might be the deciding factor on being able to buy a home, qualifying for the best interest rates, and opening up new credit cards with lucrative bonuses and rewards programs.
If your credit score misses the prime mark, you could find yourself paying a percent or more higher on a mortgage, for example, if you qualify for one at all. On a $100,000, 30-year fixed loan, a 2% increase in interest rates leads to a payment of $107 more per month and a total cost of $38,807 more over the life of the loan.
Because your credit score can save you tens of thousands of dollars, if not more, on a home loan and other borrowing, it is important to have an open and honest discussion about your credit, your spouse’s credit, and your shared financial goals regularly over the course of your relationship.
Be open and honest about past mistakes
While everyone wants to be perfect with their money, it is rare to find someone with no financial regrets. Mistakes happen, and while you may be embarrassed about them, in a healthy relationship you should feel comfortable and safe sharing your history with your spouse.