Moving in together: What to know about joint finances and credit scores

Moving in together can be an exciting time in any relationship. But it can also be a little daunting, with a lot to sort through before you start packing.  

Cohabiting for the first time can prompt a whole host of conversations, from the small (but still important): 

• Who sleeps on which side of the bed? 

• Who takes the bins out? 

• Who empties the dishwasher?

To the more serious: 

• How will we manage our finances? 

• Should we split the bills 50/50? 

• Do you have any hidden debt or credit issues?   

It’s time to focus on the latter: the financial aspects of living together. We’ll also share some of the ways moving in with a partner could affect your credit score. 

Money talk: 4 cash-related conversations to have before living together

Whether you’re starting fresh by renting or buying a new home as a couple, or you're moving into your partner’s place, you need to be on the same page about money.

Here are a few things you should discuss first when it comes to financial responsibilities in a shared space.  

1. Dealing with bills: Equal, equitable, or something else? 

One of the most important things to decide before moving in together is how to split shared costs (like rent or mortgage payments, Council Tax and utility bills, groceries, and other day-to-day expenses).  

It’s a good idea to consider a range of options to find what works best for you both, such as: 

• Going 50/50: The easiest approach is to add up your monthly living expenses and divide by two. You each agree to pay your half every month. One of you could pay the other, who would then be responsible for paying the bills. Or, you could set up a joint bank account that you both pay into and cover your costs from there. 

• Choosing an equitable split: A 50/50 split won’t always work (or seem fair) if one of you earns far more than the other. Instead of adding up your expenses, add up your combined income and calculate what percentage each of you makes. 

• Agreeing to cover different costs: Another option would be to split the responsibility for specific bills and expenses. For instance, one of you might cover the mortgage, Council Tax, and energy bills, while the other pays for the weekly food shop and the broadband. 

• Pooling your finances: Finally, you could open a joint account and combine both incomes into a single pot. This account would be used to cover all bills and expenses, big and small. Although this approach won’t work for everyone (some people prefer to keep their finances separate), it could make budgeting easier, as you’ll both have complete visibility over income and expenses.

Beware of financial abuse.

No matter how you divide your financial responsibilities, you both have the right to financial independence. If your partner controls your money, stops you from having access to your bank accounts, or runs up debts in your name, this could be financial abuse, which is a form of domestic abuse.  

This guide from MoneyHelper.org.uk can help you spot the signs of financial abuse and lists several national helplines and services that provide support and advice. 

2. Where can we make savings? 

The beauty of moving in together is that you not only have someone to share household chores with, but you can also save some money. 

Start by drawing up a budget and listing every single outgoing you both have. Next, look for duplicates and opportunities to cancel services you no longer require. For instance, you won’t need two Netflix subscriptions under one roof. 

In addition, think about how your spending habits might change now that you’re living with someone. Will you take turns cooking and order less takeaway? Could you buy groceries in bulk to save money? Can you car share to work? 

3. What’s our spending limit? 

Before you link finances, make sure you have an open conversation with your partner about your attitudes towards money. For example, if one of you is a diligent saver and the other a frivolous spender, it could cause tension. 

To avoid arguments, be clear about your expectations regarding saving and spending money. 

If you each contribute to household bills while keeping disposable income separate, you should agree on a spending limit so that neither of you is short of cash in an emergency. This means if one of you wants to make a major purchase over that limit (perhaps a new phone or gym membership), a joint decision will be needed before the money is spent. 

4. Do you have any hidden debt, credit issues, or financial secrets?

Moving in together is a big commitment that requires a lot of trust, so it’s best to have an honest chat about each other’s current financial situation before signing a lease or applying for a mortgage. 

If one of you has hidden debt, credit issues, gambling problems, or a tendency to hide major purchases, it could cause trouble further down the road. Lying about, hiding, or misrepresenting money-related matters in a relationship is known as financial infidelity. 

According to research by Aviva, almost two in five people who are married or in a relationship in the UK are committing financial infidelity. Meanwhile, 26% of couples surveyed argue about money at least once a week. 

Regular conversations about money can relieve tension and give you both an idea of how much is being spent and saved each month, along with the overall debt level across the household. This can help you plan for long-term financial objectives, major purchases, and unforeseen expenses without any nasty surprises.

Moving in with your partner: Credit score considerations

Can living with my partner affect my credit score?

No, it won’t. But it could impact your ability to get credit in the future, depending on how you decide to handle your finances as a couple.  

When you open a joint bank account to pay your bills or get a mortgage together, you create a financial association, which is recorded on your credit file. 

A financial association won’t directly affect your credit score, but it can be searched when you make a new credit application. This means if you want to take out a credit card, the lender might look at your partner’s credit history too. If your partner has missed some payments, the lender might consider you a higher risk because you have joint financial obligations. 

Sidenote: While living together won’t impact your credit score, taking on a joint debt with your partner might. This is because you’re both liable for the payments. So if you give your partner your share of the bill, and they forget to make the payment (or spend the money elsewhere), the lender will record a missed payment on both of your credit reports. A missed payment will stay on your credit file for six years and can lower your credit score (although the effect of a missed payment will reduce as time goes by, so long as you continue to make your future repayments on time).

Will getting married impact our credit score?

No, getting married or entering into a civil partnership won’t affect your credit score. There’s no such thing as a couple’s credit score, and the credit reference agencies (Experian, Equifax, and TransUnion) don’t record your marital status on your credit report.

But if you decide to change your name once you’re married, you’ll need to notify your bank, credit card company, and other loan and bill providers so they can update their records. They’ll be able to track your financial history with the credit reference agencies under your new name, and your old name will be listed as an alias on your credit report. 

Can changing my address affect my credit score?

It could. The excitement of moving in with your partner might mean some things get missed from your to-do list, and these could affect your credit score. 

When you move, don’t forget to:

• Register to vote: Whenever you change address, you should register to vote on the Electoral Roll. Lenders use the Electoral Roll to verify your details, and being registered can boost your score. You can register online – it’s free and only takes around five minutes. Once registered, the information can take 1–3 months to appear on your credit report after the local council publishes your Electoral Roll listing.

• Redirect your mail: If even a few pieces of personal information sent to an old address fall into the wrong hands, it could be enough for fraudsters to steal your identity. They could take out credit in your name and damage your credit score. Royal Mail offers a mail redirection service, which means your important documents move with you while reducing the risk of identity theft.

That said, simply moving to a new address won’t harm your credit score. Credit checks are carried out on people, not addresses, and you can’t ‘inherit bad credit’ from the person or people who lived there before you. 

To recap:

Moving in together for the first time requires plenty of honest conversations about money and a clear plan for who pays for what. 

If you want to avoid missed payments (and damage to your credit score), it might be a good idea to set up a joint account and Direct Debits for your shared bills and expenses.

No matter how you divvy up financial responsibility, make sure you have complete visibility over your credit history and score as you join finances with your partner. 

Know your numbers

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