Dependents? Marital status?

empfun

I'm assuming there is a purpose of credit scoring when on loan applications I am asked if I have depedents or what my marital status is.

Is having dependents and being married give a better credit score?

sammyjammy

Although every companies credit score is different in general yes being married and having dependant children does result in a higher score, its really quite ridiculous when you think of it, especially when you think howm uch children cost.If I was having a soapbox moment I'd even call it discrimination!Sam

jonesMUFCforever

I think it is better for your credit score because it suggests that you have a settled lifestyle who tends not to do a midnight flit.
Whether this is still true in this day and age who knows!

empfun

sammyjammy wrote: »

Although every companies credit score is different in general yes being married and having dependant children does result in a higher score, its really quite ridiculous when you think of it, especially when you think howm uch children cost.If I was having a soapbox moment I'd even call it discrimination!Sam

I understand now. The banks are more concerned about the borrower running away without paying which is a lot harder when you've got dependents than struggling to pay the money back regularly because of them.

So yeah, a settled and wholesome life where you're grounded to a stable home life and committed to pay the debt.

chambta

But saying that with most High Street banks adding dependents on to application, particularly for personal loans, increases the amount of 'free income' required to service it.

regularsaver1

dependents add extra cost - it can let the system allow you to borrow less