Love and Marriage… and Credit

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


• 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


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


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


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


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%


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%


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


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


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%


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


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


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


car

Managing a joint credit

account

Getting good insurance

rates


Saving for children’s college

education

N/A N/A N/A


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?


house

Getting good interest rates


car

Managing a joint credit

account

Getting good insurance

rates


Saving for children’s college

education

IDENTITY THEFT & CO-SIGNING


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


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


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)


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)

Love and Marriage… and Credit

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Love and Marriage… and Credit