Many couples have only one truly banked person in the relationship. It may be that only one person works, and another person stays home. Or, in this era of rising student loan bills, only one person puts their name on credit cards and mortgage loans to make it easier to qualify for financing. Other couples might have skeletons in their closet – one person has poor credit from decisions made long ago.
Whatever the case may be, it’s important for couples to both engage in good credit building habits. Here’s why:
Women outlive men
Men are more likely to have higher incomes than women, and they’re also more likely to manage the family finances. However, it has been proven time and time again that the average woman will outlive the average man. Therefore, couples should plan for a time where only one person in a couple is still living – and finances are definitely part of the equation.
It’s easier with two good credit scores
Virtually everything from basic banking and credit cards and financing a major purchase like a home are easier tasks when both parties involved in the transaction have a good credit score. Including another person on a loan means that you get to combine both incomes and assets for easier approval.
Credit scores affect more than financing
Credit scores are also used to create health and car insurance premiums. If both parties in a couple have good credit, a couple will likely receive lower premiums on their insurance policies.
It cannot be stressed enough the power of a good credit score. All couples should strive to build two quality credit histories, which will allow for the best rates on insurance, lower rates on loans, and better credit card offers.