myFICO Blog

We all remember our favorite Mom-isms, ranging from “if you keep making that face it’ll stick that way” to “this hurts me more than it hurts you.” However, some of those classic Mom-isms can be applied to good personal finance management. In honor of Mother’s Day and the Moms we love, here are the top 5 Mom-isms that also translate to important financial lessons.

"It’s clear that there’s been a shift at both ends of the score distribution. Many consumers have moved into the top tier of the FICO® Score range by redoubling their efforts to maintain an excellent credit profile. Others have fallen into lower tiers, most likely due to the financial stress felt by many households."

Are you expecting a big tax return and dreaming of spending it on a sunny tropical vacation or a new wardrobe? Think twice. Although it may not be as glamorous as a week on the beach, using your return to pay down your credit card debt will do far more to contribute to your long-term dreams.

A survey conducted by Capitol One revealed that 33 percent of Americans planned to spend part or all of their tax refund this year.

“Most people are not factoring their annual return into their overall financial plan and long-term objectives,” says Mickey Konson, Managing Vice President for Retail Banking at Capital One Bank.  “A tax refund is often seen as free money, which makes it very tempting to spend it right away, but it’s important to remember that the refund you’re getting back is your own money. Tax season is a good opportunity for people to plan ahead, with an eye toward their future goals and financial health.”

Q:  What is the FICO Fitness Challenge?

A:  Now in our third year, the FICO Fitness Challenge is an annual proclamation by myFICO Forums members, declaring where they want to see their FICO scores in the coming year.  FICO Fitness Challengers announce their starting FICO scores, current scores, goal scores, and how they intend to reach their FICO goals.  Over the past couple of years, more than a thousand myFICO Forums members have found the FICO Fitness Challenge to be a great way to hold themselves personally accountable and stay on course toward better financial health.

Your wedding will be one of the most important days of your life… and the most expensive. Many times, the cost of an extravagant engagement ring, followed by a blow-out wedding and a five star honeymoon can cost more than just money. 

Couples who choose to spend more on these items are also often opting to charge their expenses on credit cards. Unfortunately, if you’re not able to pay the resulting bills on time, your credit score will suffer. With a lower credit score, you can count on higher mortgage rates, interest rates and other long term financial effects. So, is it worth it?



Again this year, myFICO conducted a Valentine’s Day survey of more than three thousand myFICO customers, revealing many of their attitudes about relationships and money.  I've highlighted some of the results:

• 34% of couples don’t discuss finances or FICO scores until well into the relationship, while almost 12% keep their income, financial standing and FICO scores entirely to themselves. 
• 18%-22% claim to be complete opposites on the spending spectrum, or at least drastically different in their spending habits.
• 41% keep finances separate, with another 36% of couples holding both joint and individual credit obligations.
• 13% would quit dating someone if, within the first six months, they found out their partner was in debt and/or had a low FICO score.
• 9% said a good FICO score is the characteristic they find most important in a date, while 82% voted for personality.

An important new amendment to the Fair Credit Reporting Act, known as the Risk-Based Pricing Rule, went into effect on January 1, 2011. Now, lenders are required to notify a consumer when a lending decision, based on their credit score or credit report, results in credit terms that are less favorable than those offered to other borrowers.  Less favorable terms may include a higher interest rate or larger down payment requirement. Notification by the lender will be in the form of a disclosure notice that is either enclosed with the credit approval package or sent separately to the consumer. 

According to a recent Holiday Spending Survey of more than 3,000 myFICO® customers, folks continue to be most concerned about their credit card debt – almost 40% – as 2011 looms, which was about the same percentage that shared such concerns last year when polled by myFICO®.

My head started hurting the other day as I tried to make sense of what I was reading in the FICO Forums about no preset spending limit (NPSL) cards and the various ways in which their credit limits, highest balances, and account types appear on credit reports - and what these reporting differences can mean for your FICO score.

You know you're special, right? Easily one in a million. If you have been a victim of identity theft, you're one in at least 10 million. That's how many consumers were affected by ID theft last year alone.

If you're looking for help on your current mortgage, you probably wouldn't think of turning to Fannie Mae. Although it's a giant in the real estate industry, Fannie Mae has always focused more on lenders and securities, and less on individual homeowners. So I was thrilled to learn that Fannie Mae just launched a new website for people struggling to pay their mortgage. The site helps visitors clearly understand their options so they know what to do to stay in their homes. I highly recommend it.

As a parent of two college-age students, my idea of "back to school" has clearly taken on new meaning since I left for college in the late 1960's. Back then, tuition was $50 a semester, the plane ride from my home in Los Angeles to college in San Francisco was less than $20, and the only "card" in my wallet was a military draft card. And when I arrived on campus, there was neither a Bankamericard rep sitting at a card table offering me free pizza and a t-shirt for opening an account, nor did I know that 25 years later I would be concerned about something called a FICO credit score.