Navigating finances in relationships

Dating and dollars go hand in hand. From who pays on the first date to combined bank accounts;  there is no road map to navigating finances in relationships.

Would it surprise you to hear that only 2% of Aussies talk about finances on the first date? In fact it’s often not until moving in or ringing the wedding bells that it becomes a topic of discussion. Our research shows that only 25.9% of Aussie couples know their partner’s credit score, a key indicator of one’s financial health. So, though couples value financial responsibility* and find financial savvy attractive in a partner**, they don’t practice what they preach.**

Money can be a sensitive topic and it may be challenging to bring up financial discussions in a relationship, especially early on. However, no matter how many heart emojis you list next to their name in your contacts, relationships are all about balancing reality with love.

It can be difficult to be completely open with your finances, in fact 17.5% of Aussie couples admitted to fibbing about finances to their partner. Furthermore, it rates highly as an irritating topic, starting fights with upward of 35% of couples. In most couples it causes more quables than intimacy, family dilemmas or social media.***

Therefore, while talking about money is not the easiest date night topic, it is an important one. What makes for a great foundation in a relationship also makes for the perfect base when cultivating an excellent credit score. We look at the key ingredients that make up your credit score and how they apply to your romantic endeavours.

1.  Keep your (credit) enquiries to a minimum

Imagine your credit history similar to your dating history, the past 5 years gives a great snapshot for both prospective lenders and potential suitors as to what sort of person you are. Are you a serial credit persona, fleeting from card to card in search of the best points scheme? Or are you monogamous in your borrowing? Both in love and finances, it pays to be committed.

2.  Length of (credit) history

Commitment is key when you look at love and at credit scores. Are you a long-term loyal lender who always repays on time? Well, you’re a true credit score Romeo. The length of your credit history feeds into your assessment of creditworthiness as it provided an overall glimpse at your financial behaviour over the years.

3.  Know your (credit) limits

Are you too ambitious in your pursuits? Whether in romance or in money management, knowing and asserting your limits is key. Overstretching is difficult for you and your partner and can often be hard to maintain. So rather than reaching for the pedal any longer, why not set some boundaries with your credit and love life?

4.  Personal information

Ensuring you are who you say you are is critical in both love and financial matters. You may only need 100 points of ID for one of those applications, or just a driver’s license but even in the realm of dating it’s important to be true to yourself. Ghosting is not an option.

5.  Adverse events

Everyone has a little extra baggage when entering into a new relationship, a past peppered with past dalliances and the same can be said when mapping your credit history. Adverse life events can rock the boat but they don’t have to entirely steer you off course. Whether it’s the love boat or money matters to keep you afloat, a little extra financial fitness and you’ll be weathering the rough seas with steely resolve.

6.  Dependability and repayment history

Are you Mr/Miss Dependable in everything you do? Both in love and credit applications, reliability is favoured highly. So pay your dues on time and show up to every dinner date with the same frugality and you’ll be well on your way to loved up bliss.

Our research shows that 90.4% of couples say it’s key to discuss money in a relationship; however, do you ever actually have that scary chat with your significant other? Whether you’re stepping into the property market hand in hand or just trying to have an honest look at your financial possibilities together, do you know your partner’s credit score?

Disclaimer: The information contained in this article is general in nature and does not take into account your personal objectives, financial situation or needs. Therefore, you should consider whether the information is appropriate to your circumstance before acting on it, and where appropriate, seek professional advice from a finance professional such as an adviser.

Source: Online survey conducted in July 2018 among 1,170 respondents aged 18 and over by Feedilicious for GetCreditScore.

*93.1% of Aussie couples are certain that it is at least important for their partner to be financially responsible

**83.4% of respondents noted that financial responsibility is at least a quite attractive quality in a partner

***35.4% of all respondents noted they argue about finances with their partner, with 26% noting intimacy, 31.4% noting family life and 18.6% noting social life/media as a cause or argument in their relationship.

Credit scores are dynamic and change depending on when the score is generated and in what circumstances it is requested. The GetCreditScore credit score is based on the Equifax Credit Score Model. Third parties may not use this credit score to assess your creditworthiness. GetCreditScore Pty Ltd (GCS) ABN 96 169 886 891, Australian Credit Licence 501455.