I received an email from one of my radio show listeners the other day asking my thoughts about lending money in relationships. I have to first start by saying this is a very tricky situation to consider. Requests for loans in relationships are typically associated with trying to meet the need of someone you deeply care about. Whether it’s for rent, student loans, car payments or to pursue a dream; it can be very uncomfortable trying to decide whether lending money to someone you’re in a relationship with is the right thing to do.

Here are three points to consider:

1. Evaluate the Person’s Character – Character is a great indicator of a person’s likelihood to repay the loan. Creditors utilize credit reports as a way to evaluate a person’s financial character. If they see something on the credit report that is somewhat questionable, they decline the applicant or ask for additional information. You should also consider a person’s character before making a decision to lend money. You may not have access to their credit report, but you should have an idea of how he/she manages their personal affairs if you’re considering lending money.

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