ficNo one ever wants to talk numbers.  So the moment you ask your partner what’s their number-be prepared, it might get a little awkward.

Well, it’s a conversation that you should not only have with your partner, but as many people as possible.

Most people will automatically relate it to the number of people you’ve had some sexy time with.

WRONG! The number that should really matter is your credit score.  You may also hear it referred to as your FICO Score.

Do you know what your credit score is?  If you don’t, go on Credit Karma to find out and run your free report.

Everyone should make it a priority to monitor your credit, especially with cyber hacks becoming more prevalent, it’s easy to become a victim.  You need to be proactive about your credit because that number determines if you can qualify for a home loan, car loan, and your ability to get better interest rates on so many things.

If you have excellent credit, why do you care what your partner’s credit score is?

imagesI read a story on Yahoo about how your credit score can be a potential predictor for a long-lasting relationship.

If your partner has a bad credit score, it should not be the only deal breaker.  Luckily, if your partner has horrible credit, it does not affect your own individual credit score.

But it can affect some areas of your life in the future when you start getting things together like a house, credit cards, furniture, just to name a few.  MyFICO and Credit.com has some great articles about what to consider when your thinking of saying “I do.”

What is the Rating Scale?

Your credit score can range anywhere from 301 up to 850. How do you determine if you have a good credit score or a bad credit score?  Your credit rating and a little reading like these articles on Nerdwallet or Credit.com.

Here is the rankings to determine if you have good or bad credit based on your FICO score.

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For more information, click here for this article from Credit.com.

How is your credit score determined?

  1. Payment History– Basically, don’t miss a payment.  I use auto-pay to make sure I never forget.  Plus I hate getting late fees.
  2. Credit Utilization– I know I’m guilty of it, but the amount of open credit affects your score, especially if you don’t use it.  For example, you decide to open 5 credit cards with a total of $100,000 in available credit, but your monthly spending is approximately $3000.  That means, you have $97,000 of unused credit open and the credit card company sees it as a risk
  3. Length of History– Even if you have money in the bank, if you don’t have some type of credit history, it can prevent you from getting large loans for a car or a house.  In the eyes of the credit company, the length of history shows reliability and stability.
  4. Mixture of New and Old Credit– New credit isn’t always a bad thing, but you definitely want to have both.

Annual Credit Routines

Just like celebrating your birthday, your anniversary, or your family reunion, monitoring your credit should become an annual tradition too.

And the best part…it’s free!  Yes, you can run your credit report each year for free without it affecting your credit because it is considered a preventative measure.

Take the time and go through each item on your credit report to check for accounts that aren’t yours, old accounts that you can close, and any red-flags on your credit history such as a missed payment that isn’t really a missed payment.

As boring as this topic may be, I hope everyone becomes a little more passionate about your credit score. The higher the number the better!

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