Years ago, the rock singer Alice Cooper recorded a song called “You and Me” that contained the line “we share a bed, some popcorn and TV.”
It isn’t clear from the song whether the couple is married. But Cooper could easily have included the word “finances” along with the popcorn. After all, couples, even those with prenuptial agreements, share certain financial arrangements.
In other words, it’s hard to avoid money matters when dealing with a spouse.
But what happens when a would-be spouse has problems with poor credit that could impact the couple’s future finances?
People in dating relationships are increasingly asking such questions. It is by no means out of bounds to raise the question of someone’s credit score sooner rather than later in a romantic relationship, even if marriage is not on the immediate horizon.
This is understandable. It is understandable because, in a sluggish post-Recession economy with a shortage of jobs, financial challenges have to be taken seriously. And if you join forces with a partner who has a checkered credit history, your partner’s problems could affect such things as the interest rate you get on joint applications for credit.
When money is tight, the increased monthly payment from the increased interest rate can be significant for many couples.
It’s also true that, in the short term, bankruptcy is not good for your credit score. But that fact has to be put in perspective. In the longer term, it is very possible to rebuild credit after bankruptcy, as we discussed in our post on November 28 of last year.
Source: Fox Business, “Will Fiance’s Old Bankruptcy Hurt my Credit?” Justin Harelik, Oct. 16, 2013