1 EDELMAN BERLAND Experian Credit Score Marriage Survey Report April / May 2014
Oct 18, 2014
1
EDELMAN BERLAND
Experian Credit ScoreMarriage Survey Report
April / May 2014
2 © Copyright 2014 Daniel J Edelman Inc. Intelligent Engagement
WHO HOW MANY ACCURACY WHEN HOW
Married Adults Nationwide n=1,010 Margin of Error
= ± 3.1%
Data Collection Occurred
April 16-19, 2014
Online Survey
Methodology
Results are compared with those of an online survey of n=1,000 unmarried adults ages 30-49 nationwide was conducted June 12-17, 2013.
Methodology
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• Married couples value an open dialogue about finances; most discuss their financial goals at least once per month
• Married adults are more apt to discuss large investments than small, everyday purchases. The average amount of money they will spend before discussing it with their spouse is $812.
• Women and post-recession couples – those married after the 2008 recession – place greater value on financial dialogue and are more likely to discuss smaller-ticket items with their spouse.
• Half of married adults say that credit scores were important to them when choosing a spouse
• Credit scores were most important to women and to post-recession couples.• Half of married couples agree that credit played an important role in their marriage when
securing a home loan or getting a good interest rate.
• Credit scores are the only financial topic that couples do not discuss before their wedding day
• One in ten married adults have never discussed credit scores with their spouse.• Post-recession couples are more apt than those wed before the 2008 recession to discuss
credit scores with their spouse before tying the knot.
• Credit scores are a source of stress in one in five marriages.• Spouses who discussed credit scores before getting married are more likely to agree on how
to use credit as a couple.• One in ten married couples have been affected by identity theft (14%), have needed a co-
signer after their wedding day (11%) or have needed to borrow money to avoid faulting on debt (11%).
Key Findings
FINANCIAL COMPATIBILITY
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98% 95%86%
77%
98%93% 90%
81%
Attribute Importance(Shown: % Important)
Married Unmarried
Married adults value financial responsibility more than physical attractiveness in a spouse
Q7: How important are each of the following attributes [when considering a long term romantic partner] / [in a spouse]?
(Shown: % Important)
Personality Compatibility
97%
98%
Financial compatibility
94%
96%
Physical Attractiveness
87%
85%
Career Ambition69%
86%
Attribute Importance by Gender Among Married
Adults
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98% 97% 96% 95%
77%69%
44%
83%
95% 91% 95%
78%
63%
45%
Compatibility Importance(Shown: % Important)
Married Unmarried
Financial compatibility is important to 96% of married adults and 91% of their unwed counterparts
Q8: [In looking for a long term romantic partner] How important is it for you [and your spouse] to be compatible on each of the following?
(Shown: % Important)
Family goals97%
98%
Life goals94%
99%
Finances96%
97%
Sex & intimacy95%
96%
Career goals72%
81%
Religion & spirituality
64%
74%
Politics43%
44%
Compatibility Importance by Gender Among Married Adults
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89% 85%72% 67%
43%35%
86% 84%
51%36%
91% 86%
60%
35%
88%
48%34%
Married Unmarried
Positive Attributes
(Shown: % More Attractive)
Negative Attributes(Shown: % Less
Attractive)
Financially responsible
Pays bills on time
Maintains a budget
Open about personal finances /
credit history
Has reasonable amount of debt with
plan to pay off
Knows his/her
credit score
Q9: How does each of the following attributes influence the attractiveness of a [potential romantic partner] / [spouse]?
N/AN/A
N/A
Spends beyond his/her means
Has large amount of debt with no plan to
pay off
Avoids discussing personal finances /
credit history
Never checks
credit score
Married couples value openness about personal finances and credit history more than those who are dating
N/A
FINANCIAL BEHAVIORS
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Most married couples discuss their financial goals on a monthly basis, and they are more likely to discuss large investments than everyday purchases
Q13: Approximately how often do you discuss financial goals with your spouse?Q11: How likely are you to discuss the following financial topics with your spouse?Q12: What is the maximum amount of money that you would spend before discussing it with your spouse?
$812Average amount
married adults will spend
before discussing it
with their spouse
20%
31%19%
24%
5%
Financial Goal Dis-cussions
(Shown: % Frequency of Discussions)
WeeklyA few times a monthMonthlyA few times a yearAnnually or less often
64%
96%
Purchase Discus-sions
(Shown: % Likely to Discuss)
70%MONTH
LY
Gen Y 85% Post-Recession 82%
Gen Y 77%Post-Recession 75%
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Two in five married adults consider their household finances a shared responsibility that evolves over the course of a marriage
Q6: Who would you say is primarily responsible for each of the following in your household? FinancesQ15: Please indicate whether you would agree with that statement and whether you think your spouse would agree.
48%
39%
13%
Responsibility for Household Finances
(Shown: % Definitely/Proba-bly)
Self Shared Spouse
86% 85%78%
73%
Financial Decision-Making Statements
(Shown: % Agree)
I would agree
Men 53%
Boomers 44%
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Most married couples are focusing on saving for retirement or paying off a home loan, yet many still feel comfortable taking on additional debt
Q14: Currently, which of the following do you consider to be your and your spouse’s biggest financial goal?Q15: Please indicate whether you would agree with that statement and whether you think your spouse would agree.
Other
Paying off wedding debt
Saving for a vacation
Paying off student debt
Saving for college education
Saving for a home
Paying off a home loan
Saving for retirement
10%
1%
7%
9%
9%
13%
18%
33%
Top Financial Goal(Shown: % Selected)
Our bills are overwhelming
We feel comfortable taking on more debt
61% 59%64% 67%
Financial Decision-Making Statements
(Shown: % Agree)
I would agree
Men 62%
Boomers 56%
Gen Y 23%
Gen Y 22%
CREDIT SCORES
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Nearly half say it was important for their spouse to have a good credit score; a third considered the impact of their spouse’s credit on their own finances
Q16: When choosing your spouse, how important was it for him/her to have a good credit score? Q20: To what extent do you agree or disagree with the following statement: “Before I was married, I considered how a potential spouse’s credit score could affect my finances.”
14%
35%30%
20%
Credit Score Importance in Choosing a Spouse
Very importantSomewhat importantNot too important
49%IMPORTA
NT
33% considered how a potential spouse's credit score could
affect their finances before getting
married
Women 56%
Women 38%
Gen Y 44%
Unmarried Adults:66% IMPORTANT
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Credit scores are the only financial topic that couples do not discuss before their wedding day
Q10: Please indicate when, if ever, you learned each of these things about your spouse. His/her…
Annual income
Spending habits
Student loan debt
Bill payment history
Long term financial
goals
Retirement savings
Credit score
79% 76% 73% 69%60%
55%
43%
18% 21%
10%
26%32% 35%
43%
3% 3%
17%
5% 9% 10% 14%
Financial Topic Discovery(Shown: % Learned about Spouse)
Before marriage After marriage Never
Gen Y 56%
Women 46%
Men 19% Gen X 16% Boomers
16%
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One in ten married couples have never discussed credit scores; credit has been a source of stress in 21% of marriages
Q17: Have you ever discussed credit scores with your spouse?Q20: To what extent do you agree or disagree with the following statements: “My spouse’s credit score / My credit score has been a source of stress in our marriage.”
86%
12%
2%
Credit Score Discussions
with a Spouse
Yes No Unsure
21%
79%
Credit Score as a Source of Stress in
Marriage
Yes No
Unmarried Adults:
48% HAVE DISCUSSED
CREDIT SCORES WITH A ROMANTIC PROSPECT /
PARTNER
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Most Likely to Agree85% Overall
• Those who have discussed credit scores (88%)
• Those who discuss financial goals monthly (88%)
Q20: To what extent do you agree or disagree with the following statement: “My spouse and I agree about how to use credit as a couple.”
49%
36%
10%5%
Spousal Agreement on How to Use Credit as a
Couple
Strongly agreeSomewhat agreeSomewhat disagreeStrongly disagree
Most Likely to Disagree
15% OVERALL
• Those who have not discussed credit scores (32%)
• Those who discuss financial goals less than monthly (21%)
85%AGREE
Most married couples agree on how to use credit; those with an open dialogue about credit scores are more apt to agree
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55%48%
42%
29% 28%19% 9%
68%
52%42%
53%
Poor Credit: Areas of Concern(Shown: % Important Role in Marriage / Potential Impact)
Married Unmarried
%
Credit plays the biggest role in marriages when spouses are securing a home loan or applying for good interest rates
Q19: [If your long term romantic partner had a poor credit score, in which of the following ways would you be worried it might affect you?] / [In which of the following ways has your or your spouse’s credit score played an important role in your marriage?]
Securing a loan to buy a
house
Getting good interest rates
Securing a loan to buy a
car
Managing a joint credit
account
Getting good insurance
rates
Saving for retirement
Saving for children’s college
education
N/A N/A N/A
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63%54%
49%
32% 30%24% 10%
59%47%
42%
25% 25%17% 8%
42% 44%37%
30% 29%
16%9%
Poor Credit: Areas of Concern(Shown: % Important Role in Marriage)
Married more than 20 yrs Married 5-20 years Married 5 yrs or fewer
%
Couples married over 20 years know that credit plays an instrumental role in marriages
Q19: In which of the following ways has your or your spouse’s credit score played an important role in your marriage?
Securing a loan to buy a
house
Getting good interest rates
Securing a loan to buy a
car
Managing a joint credit
account
Getting good insurance
rates
Saving for retirement
Saving for children’s college
education
IDENTITY THEFT & CO-SIGNING
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More than one in ten marriages have been affected by identify theft; one in five victims say fraud impacted their family’s financial goals
Q21: Please indicate whether you and your spouse have ever encountered each of the following financial situations since getting married: Identity theftQ23: To what extent has identity theft impacted your family’s financial goals? [Asked of those who have been / whose spouses have been victims of identity theft, n=141]
14% of marriages have
at least one spouse that has been a victim of identity
theft
7%
13%
37%
43%
Identity Theft Impact on Fi-nancial Goals
(Shown: Victims of Identity Theft)
Impacted a great dealImpacted somewhatNot impacted too much
20%IMPACTE
D
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Q21: Please indicate whether you and your spouse have ever encountered each of the following financial situations since getting married.Q22: Which of the following describes the reason(s) you needed a parent or in-law to co-sign on your behalf? [Asked of those who have required a parent / in-law to co-sign on their behalf, n=108]
11% have required a parent-in-law to co-sign on their
behalf after getting married
11% have borrowed a
significant amount of money from a family
member to avoid defaulting on debt
One in ten married couples have required a co-signer since their wedding day, largely due to having poor credit
Debt from previous marriage
Not been employed long enough
Insufficient income
Poor credit
6%
24%
34%
45%
Reasons for Needing a Co-Signer
(Shown: Those who Required a Cosigner)
KEY SUBGROUP ANALYSIS
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In line with the dating survey findings, wives place greater value than husbands on financial dialogue and openness about credit scores
Q9: How does each of the following attributes influence the attractiveness of a spouse?Q16: When choosing your spouse, how important was it for him/her to have a good credit score? Q12: What is the maximum amount of money that you would spend before discussing it with your spouse?
% More attractive
Is open about his/her personal finances and credit history
60% 73%
Knows his/her credit history 30% 40%
% Less attractive
Avoids talking about personal finances and credit history
44% 59%
Never checks his/her credit score
28% 43%
% Important
Has a good credit score 43% 56%
< $100
$100-500
$500+
34%
42%
25%
28%
52%
20%
Maximum Amount Spent Before Dis-
cussing with Spouse
Women Men
$1,231(MEAN)
$396(MEAN)
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Q13: Approximately how often do you discuss financial goals with your spouse?Q11: How likely are you to discuss the following financial topics with your spouse: Small, everyday purchasesQ10: Please indicate when, if ever, you learned each of these things about your spouse: Credit score, Pre-MarriageQ12: What is the maximum amount of money that you would spend before discussing it with your spouse?
Pre-Recession Couples (Married
Before 2008)
Post-Recession Couples (Married
2008 or Later)
Discuss financial goals with spouse at least monthly
65% 82%
Likely to discuss small, everyday purchases with spouse
59% 75%
Discussed credit scores before marriage
35% 61%
The 2008 recession has made couples increasingly conscious of the importance of credit scores and discussing finances
< $100
$100-500
$500+
26%
51%
23%
42%
38%
20%
Maximum Amount Spent Before Dis-
cussing with Spouse
Post-Recession Pre-Recssion
$1,022(MEAN)
$256(MEAN)