We Dig Fiscal Responsibility

With three kids under age 6--even in a household with two full time working parents--we have to be smart about our finances.  We're not big spenders, but with a mortgage, daycare, car payments, food and utilities the bills can stack up very quickly if we're not careful.  But we are.  And as a result we have no credit card debt.  We discuss our budget, set financial goals and put off major purchases for as long as possible.  And while we might not always agree on whose turn it is to unload the dishwasher, we're on the same page when it comes to our finances.

Apparently we're the minority.

A recent FICO survey found that 40 percent of couples wait until they are engaged to discuss their finances.  Some even wait a full year after they’re married –likely a statistic that supports the fact that ½ of all marriages these days end in divorce!  The survey also found that 20 percent of couples described their partners’ spending habits as “drastically different” from their own and over 45 percent described them as moderately different. (Only 20 percent of couples rated each others’ spending habits the same.)
With survey findings like these facing Valentine’s Day, FICO’s Credit Cupid has solutions which will help your FICO scores reach tip-top shape:

1) Maintain a good history of paying bills on time. Payment history is the most important component of your FICO score. People with a long history of paying their bills on time, are expected by lenders to continue their good payment pattern, and will be more willing to extend credit in the future.

2) Encourage good spending habits from your partner. Everyone has their own credit report and FICO score; when couples begin applying for credit together their shared accounts affect both FICO scores. This is why it’s doubly important to pay on time when you’re responsible for a shared account.

3) Don’t overspend. While it’s easy to get caught up in buying gifts for your sweetheart, spend within your means. If you have a lot of debt, adding more debt or maxing out your credit cards can hurt your FICO score – and potentially your relationship.

4) Don’t apply for credit you don’t need. Your FICO score not only considers the existing credit accounts on your credit report, but also applications for new credit. Applying for many new accounts in a short amount of time can be a sign of looming financial problems, which can hurt your FICO score.

5) Discuss finances with your partner. Your partner’s financial burdens can ultimately affect your credit if you feel compelled to help out with their debts and obligations. Have an honest financial discussion early and avoid surprises later!

If you would like to learn more about the survey or how FICO can help keep you in top credit shape, please visit myFICO.com