Good Credit, Good…Love Life?

While the financial world eagerly awaits the the Federal Reserve Board’s decisions about interest rates, a new working paper was published at the Fed by economists Jane Dokko, Geng Li, and Jessica Hayes. These economists studied at how one of the most important indicators of your financial health, your credit score, can predict how successful you will be in your relationships.

The economists studied quarterly personal credit data from the Federal Reserve Bank’s Personal Credit Panel provided by Equifax. They learned that people tend to form long term, committed relationships with people of a similar credit score. The team also discovered that not only do couples tend to have similar credit scores, but those that have higher credit scores tend to stay together longer.

The maybe obvious conclusion that the team drew is that those in a relationship with similar credit scores were less likely to break up for financial reasons. Seeing that financial arguments are a big indicator of divorce, this conclusion makes sense.

The team goes on further to say that credit scores can be indicative of trustworthiness in general, and that couples with a large mismatch in credit scores are more likely than average to see their relationship ended by reasons beyond just financial ones.

For those interested in reading the whole paper, it can be found on the Federal Reserve’s website.  Quartz also has a great summary here. While the study doesn’t necessarily say that improving your credit score will increase your chances of finding love, it couldn’t hurt to read some of our tips, right?

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