Sunday, February 14, 2016

Help Your Kids Build a Sweetheart Credit Score

Sweetheart Credit Score

Do you want your kids to enjoy stable long term relationships as adults? Of course you do. Then start teaching them good money habits now so they’ll have higher credit scores as young adults.

What’s the connection between credit scores and lasting love?

A study of Equifax data for 50,000 couples shows that people who have higher credit scores are more likely to commit to a relationship and have that relationship last longer.

Here are some of the most important credit score building habits you can start emphasizing with your kids now:

  • Make your payments on time and in full. Missing or coming up short on your payments — credit cards, car loans, student loans, mortgage, etc. — has the biggest negative impact on your credit score.
  • Don’t max out your credit. Using all of your available credit reduces your score. Share this water pitcher analogy to teach your teens about smart credit card utilization.
  • Use a smaller number of accounts responsibly over the long term. Opening up a bunch of credit accounts signals financial trouble.

See here for more info about the most important factors impacting a FICO credit score.

Oh, and if your kids still think love is yucky, let them know there are lots of other non-yucky reasons to have a good credit score.

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