No, blog administrator Lawless, this is not spam. Credit scores are related to dating, as Ana Swanson reports in the Washington Post that credit scores are "eerily good at predicting" success in forming a committed relationship. The higher an individual's credit score, the more likely it is that they form a committed relationship and stay in it. That part could mirror a number of other things. For example, people who are young and not seeking serious relationships, also then to have lower credit scores from less credit experience.

But after a few dates, when you are wondering whether to get a more serious, that is when it's time to demand a visit to annualcreditreport.com. And you should do this on a date together. The difference in credit scores between two dating partners matters–not just the score itself. A closer match in credit scores at the time one started dating is highly predictive of whether the couple stays together. The next time someone asks you "what do you think of her?" you can respond, "well, I barely know them. I'd definitely need to know a credit score to give an opinion."

You might think this research is some forlorn economics PhD's dissertation gone awry, but it from no less than the august Federal Reserve Board. Clearly with the financial crisis over, the researchers there are . . . ahem, stretching themselves. Jane Dokko, Geng Li, and Jessica Hayes are serious researchers, however, and the paper is strong. It contributes to the growing body of research showing the degree to which data collection and analysis have encroached even into the most private parts of our lives.

In a recent Washington, DC study conducted by the National Foundation for Credit Counseling, study participants were asked to rank things they’d be embarrassed to admit and given five categories from which to choose. In addition to credit card debt, the options included age, weight, bank balance, credit score or none. The thing these consumers ranked as most embarrassing to admit was their credit card balances. See the actual stats in the article link above. Coming in a strong second was their credit score. I found this surprising as I’d much rather talk about my credit than my (advancing ) age, for example. But I am not typical. Are you?

A spokesperson from the NFCC explained the significance of he study as follows: “Since consumers revealed that the two facts they’d be most embarrassed to admit are related to credit, it is obvious that they are not comfortable with how they are currently managing their money.”

Elizabeth Warren, a blogger who left Credit Slips for the lesser fame of the U.S. Senate, has introduced the Equal Employment for All Act, which would bar credit checks for most pre-employment screening. A few states already have taken steps in this direction, with varying levels of efficacy. Senator Warren's bill would institute a federal ban and has been widely reported elsewhere (see here (Slate Salon) and here (CBS) for useful overviews).

The growth in the use of pre-employment credit checks has been the subject of several Credit Slips posts. Katie Porter first noted the development in 2006 and in 2010 discussed Rep. Steve Cohen's bill which was the model for Senator Warren's proposed legislation. Debb Thorne commented about the lack of any evidence connecting credit reports with job performance. Debb's own research documents how "off label" uses of credit reporting undermine bankruptcy's fresh start when credit reports are used to determine things like how much people pay for insurance or whether they get a job.

Senator Warren's bill has attracted opposition from the expected places such as the Consumer Data Industry Association and the Society for Human Resources Management. The former has data to sell, and the latter has services to sell. Those motives do not necessarily make their positions illegitimate. We should keep in mind, however, that there is money to be made in convincing those who make hiring decisions that there are data and services that can unlock the hidden traits of job applicants. 

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I had to laugh at a comment made by Ken Doran in response to my post on credit score internet dating.  Ken claimed that while he agrees that people considering joining their lives should share financial information, he wouldn't give a rodent's backside about the future partner’s credit score. Thirty plus years as a consumer bankruptcy attorney has taught him that the reports often contain errors, a fact confirmed by a Federal Trade Commission study finding that 21 percent of reports do contained errors.

With an error rate that big, it is surprising that creditors rely as heavily as they do on such reports. Smeared credit is serious business, though, as a recent $18 million jury verdict shows. Julie Miller of Oregon was awarded $18.4 million in punitive damages and $180,000 in compensatory damages against Equifax, after Miller contacted Equifax eight times between 2009 and 2011 in an effort to correct inaccuracies, including erroneous accounts and collection attempts, a wrong Social Security number, and an incorrect birth date.

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Props to Jodi Helmer for her recent story on creditcards.com about dating and credit scores. I am interested in this development in general and also in how it might jibe with current protocol on who pays for dates. 

For about ten years now, I have taught a weekend class to law and undergrad students on financial self-defense. Sometimes the students practice active listening in pairs about what financial issues trouble them most going forward. While student loan debt always tops the list (more so lately), a fair number of students share fears about the role of debt and credit in finding partners. Helmer’s story tells of the increasing role of creditworthiness in determining partner eligibility. I get it. To me, how one uses credit is one widow into how he or she handles commitment and obligation. A relatively new dating site, CreditScoreDating.com, capitalizes on those who care about credit and helps them find love. A few people who commented in the story thought this was a bad sign but I disagree.  If credit is not important to a person, they can use another site. 

While my clinic students today were not impressed and thought that screening based upon credit scoares was a wee bit superfical, I have always encouraged students to have the money talks sooner, and to unquestionably share credit scores before getting married.  This site helps determine credit compatibility from the beginning. The users will likely be self-selected people for whom credit use is of particular interest.  The site may also draw people who want to talk honestly about debt and credit issues and not shove them under the rug as is often done.

One thing about modern debt and dating that mystifies me is that guys are supposed to pay.  Every year men in my class report that this is the protocol, at least at first.   They also say that dating can put them in the red.  How does this square with equality? It seems wrong for women to care about credit scores if they are not footing the bill?   Back in the day (yes I am an AARP member), women wanted to pay for themselves for the sake of equality and independence, and perhaps for other now antiquated reasons.

Can our younger readers please confirm that this “the guy should pay” rule is indeed in place, and also explain it?  I look forward to learning from you.