Planning to marry, rent, or get hired? Your credit score may be the deal-breaker | Mint

In February 2025, in Maharashtra, a girl’s family did not go ahead with the wedding proposal after discovering the boy’s credit score was poor. Most of us associate the importance of the credit score with credit cards and loans only. While the credit score is important for credit instruments, it has importance in other areas. 

In this article, we will understand the importance of a good credit score in areas like marriage, employment, house renting, business partnerships, etc.

Importance of a good credit score in marriage

As discussed at the start of the article, a girl’s family did not go ahead with a marriage proposal in Maharashtra. The marriage talks were in the final stages when the girl’s uncle suggested checking the boy’s credit score. On checking, they found the credit score was low. The boy was deep in debt with multiple loans. A low credit score is an indicator of poor credit management. Considering the girl’s financial security, the family decided to drop the marriage proposal.

The above scenario highlights the importance of a good credit score in marriage proposals. Checking the credit score and profile of the to-be groom and bride gives both to-be partners a picture of their financial profile.

The credit score and profile reveal the number of loans and credit cards taken, how they are being serviced, the outstanding debt, any delays/defaults, etc. It reflects financial discipline and credit management.

In many cases, post-marriage financial problems have led to stress in relationships and even divorce. Hence, checking the credit score and credit profile before marriage is important for both to-be partners. It helps both partners understand the financial behaviour of each other.

Importance of a good credit score for employment

Some employers check the credit score and profile of the prospective candidate before hiring them. Financial stress in personal life can spill over to professional life. It can impact the job performance of an employee. Hence, some employers check the candidate’s credit score along with various other checks.

If the candidate has a good credit score, the company can tick the credit performance checkbox, and further assess the candidate on other parameters. If the candidate’s credit score is poor, the company person can discuss it with the candidate to understand the reasons. Accordingly, the company can decide whether to pursue further with the candidate’s selection or reject the candidate.

Even during the course of employment, some employers may check the credit score of employees on a regular basis. It can help identify early signs of financial stress, and accordingly, steps can be taken to address it before it becomes a big problem. If there is financial stress, the concerned department personnel can discuss the same with the employee and the steps being taken to overcome it. It helps ensure financial stress doesn’t impact the employee’s job performance.

Importance of a good credit score for renting a house

When giving their house on rent, some owners insist on the credit score and profile of the prospective tenant. It helps the owner access the financial behaviour of the prospective tenant. If the prospective tenant has a good credit score, it will give some assurance to the owner that they are renting out the house to a person with good financial discipline. It will be a safety check that gives some assurance that the rent will be paid on time.

If the prospective tenant’s credit score is low, the owner can talk to the prospective tenant to understand the reason(s) for it. Accordingly, the owner can decide whether or not to rent out the house to that prospective tenant.

Importance of a good credit score for a business partnership

A businessperson looking for a partner assesses the prospective individuals on various parameters. One of the parameters can be the prospect’s credit score and profile. It is important to choose a partner who is financially sound and disciplined. These things can be assessed by checking the person’s credit score and credit profile.

The credit score will give an overall summary of the credit behaviour. The credit profile will reveal the existing loans and how they are being serviced. It will also highlight whether any loan repayments have been delayed or defaulted. Choosing a business partner with a clean track record of credit repayments is important.

Building and maintaining a good credit score

We have discussed the importance of a good credit score in various areas of life. Now let us understand how to build and maintain a good credit score. Various parameters are taken into account for calculating the credit score. Some of these include the following.

Timely repayment: Timely repayment of outstanding credit has the highest weightage in calculating the credit score. An individual must always pay the loan EMI(s) and credit card outstanding before or by the due date. Any payment delays or defaults can impact the credit score adversely.

Low credit utilisation ratio: The credit utilisation ratio measures the amount of credit utilised from the available credit. A credit utilisation ratio of 30% or lower contributes towards increasing the credit score. Hence, an individual must aim to keep the ratio below 30%.

Healthy credit mix: An individual must have a mix of secured (home loan, vehicle loan, etc.) and unsecured (personal loan, credit cards, etc.) loans. A healthy credit mix contributes towards improving the credit score.

Number of credit applications and their frequency: Multiple credit applications, and that too in a short period indicate credit-hungry behaviour. It affects the credit score negatively. Hence, an individual should make one credit application at a time. They should wait for the bank’s final decision before making the next application.

You must always aim to build and maintain a good credit score. Apart from helping you get a loan/credit card, it can play an important role in your marriage, job, house renting, business partnerships, etc.

Gopal Gidwani is a freelance personal finance content writer with 15+ years of experience. He can be reached at LinkedIn.