Credit Scores and Committed Relationships

Abstract

We document a sizable positive correlation in the two individuals' credit scores at the time when they form a committed relationship, controlling for similarities in their socioeconomic and demographic characteristics. Moreover, couples with lower average credit scores and larger score differentials at relationship-onset are more likely to separate in the future. Match quality in credit scores predicts separations over and above its association with subsequent financial distress and limited credit access, which themselves can influence relationship outcomes. We explore possible behavioral traits reflected in credit scores that may help account for their predictability regarding relationship dissolutions.