Week #6 - Credit History and Credit Score
Last evening we explored the importance of Credit History/Credit Score. How important is your Credit Score to you? If so how and what measures will you undertake to use credit more wisely?
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Greetings
Hello and welcome to the Community Renewal Team (CRT) 2024 Financial Literacy Institute Blog. This blog is not public; It is open to those enrolled in our Institute. We use this blog to communicate about assignments; to share resources, and to discuss matters of importance to you! We look forward to our shared experience! ~Eileen Feliciano
week#9 Savings and Wealth Building
Last evening, we addressed preparing for retirement and building wealth. How prepared are you? What measures do you need to undertake to ensure a retirement safety net? 6 ways to save for your retirement: Focus on starting today. Contribute to your emergency fund. Reduce debt with Avalanche or Snowball Method. Rein in spending Set a goal/ Automate your savings!
It's very important to me. I just didn't realize it can hinder your livelihood until it gets destroyed. I helped to many people with loaning them money to help them pay their bills. I won't do that anymore. By having a great credit score I can get better interest rates and be able to get house. I'm going to continue to track my spending, check my credit report and monitor my credit score. Pay on time and look for help when I need it.
ReplyDeleteAGREED!! Sometimes it's so hard to say no to people, when they ask to borrow money. You want to be there for others, but those same people, may get comfortable doing so..
DeleteCredit is so important , and checking it periodically is important.
I hear you, Stacy! It sounds like this new boundary you are setting (not lending people money) allows you to create the life you want, with a focus on building your livelihood. It sounds like optimizing your monetary flow, tracking your spending, and enabling better interest rates are all in service of your dreams. Onwards & upwards!
DeleteYou've got this Onika! Great credit coming your way!
DeleteI agree placing boundaries ,setting goals and sticking to them it allows us to reach and achieve such goals. We sometimes put others needs first and our needs are put on hold to help others making this a habit and a endless cycle.
DeleteHello Ladies, You ladies are awesome!
DeleteMy credit score holds significant importance to me as it offers creditors insight into my history of bill payments. I’ve come to realize the need for actively managing and nurturing my credit score. To do so, I intend to access my credit report using the tool Eileen recommended and use credit cards only when essential. Moreover, I aim to ensure that my debt does not exceed 30% of my credit limit.
ReplyDeleteNicole , this is a very true outlook to have and i have also tried to do the same and often, it has not worked in my favor lately, BUT im encouraged by the ability to change, the scores and mindset.
DeletePracticing those pieces are key! Your words land with resonance for me: "the need for actively managing and nurturing my credit score." You've got this!
DeleteYes...Practice and Practice some more!!!
DeleteHi Nicole I agree monitor your score and keeping your use of credit card less than 30%, are good strategies to keep in mind to built the credit up with also making payments on time . This will help your credit history. You got a good foundation!
DeleteGreat advice, yes a wonderful Foundation. My eyes are more open about some things, regarding credit.
DeleteHello Stacy. Our credit score is a learning curve. It helps us identify over time the changes and resources we need to use to improve our credit report. Having a better credit score can provide us with options for lower interest rates for loans and credit cards. I plan to continue to monitor my spending and check my credit report.
ReplyDeleteHello Nicole. You're correct it's definitely a learning curve. Yes we must use all the resources we can to keep everything intact. The 30% utilization rule is very important to maintain so I credit score does not decrease.
ReplyDeleteYes Stacy knowing what resources are out there to assist us in this financial journey would be helpful, to steer us in the right direction .
DeleteA credit score is so important, and i have to admit i get rather uncomfortable reviewing mine, because I know it needs to be better, but the ability to know, that making some changes will help. I monitor it often and check for things that can be removed or corrected. Also making sure not to make the same mistakes i made previously, LIKE opening to my CC's at once.
ReplyDeleteHi Onika, it sounds like you are stepping into a sense of more accountability in learning from your past mistakes. That is huge. So many times I can 'beat myself up' for choices made that don't seem to truly serve my highest good, yet that hasn't changed my pattern. Hearing you share about having the ability to know the consequences lands in me with hope - that this knowing might well slow down my choice-making to tap discernment.
DeleteHi Jess yes accountability is key and beating myself up wont get me anywhere , just need to more forward, learn from some past mistakes. YES WE ALL HAVE HOPE! and we are all doing and learning/...
DeleteHi Onika and Jess I agree accountability is key but also baby steps it will get us to successfully achieve our goals. Try and error and resonate, evaluate and try again. You ladies got this!
DeleteGreetings, Onika. Although it might be unsettling, being informed about the status of your credit can provide you with a sense of security. Equipped with the necessary information and resources, you will be empowered to make the necessary adjustments. I appreciate your open-mindedness regarding the avoidance of repeating past errors. You got this.
ReplyDeleteHi Nicole , YES unsettling is a great word to use, i am making adjustments and trying to be empowered of course some days are better than others. Thank you for your words.
DeleteOnika yes it can be uncomfortable reviewing your credit but once you do it makes you feel empowered to do better and make smarter choices. You got this. Just imagine how wonderful it's going to look at a clean and healthy credit report and score. You are going to be on cloud 9. All the hard work paid off.
ReplyDeleteHi Stacy, yes being uncomfortable , may not be a bad thing as im thinking because it could allow us all to learn, and be encouraged and do better.. Cant wait to be in a better place.
DeleteA credit score is very important to me, though I hadn't fully realized this until this class. While I knew if affected my interest rates on cc's and loans, and could affect rental and car insurance costs, I just rather ignored it; I don't have a car and didn't see a way to move from where I live. So, I rather put my concern and focus on a great credit score on the back burner. While I do make monthly, on-time payments, I can see that if I want to make serious changes in the way I am living with my money love, I will want to quicken my emergency fund savings to $1000 and then pay down my credit card and tackle my personal loan debt. It would be a whole lot easier with more income, AND right now, learning, practicing and creating a foundation for change is rather key for me.
ReplyDeleteHi Jess that seems like a great plan, we can only do what we can do but try to move in a positive way. YOU GOT THIS!!!
DeleteHey Jess, one step at a time. You've got this girl !
DeleteThank you Onika & Chanell - I really appreciate your support!
DeleteThis comment has been removed by the author.
ReplyDeleteMy credit score is suuuuuuuuper important to me to the point where I check it almost daily. It is in my best interest to fix my credit and pay off all my debts using the tools that I am learning from Eileen because I want to be able to experience what it feels like one day to have good credit and see what better opportunities open up for me and my home.
ReplyDeleteI LOVE suuuuuuuuuper important, because it so is. Your good for checking daily, i get anxiety when i get that alert. But that anxiety draws me to do better.. We ALL got this...
DeleteI hear your commitment to improve your credit score to the point of awesomeness! I would feel super anxious checking my score every day.... reminds me of how I used to weigh myself every day when trying to loose weight! AND, I can appreciate your focus and enthusiasm. Sounds like you have hope ...and faith! I believe that Knowing your "why" - Chanell - will open your up to new opportunities ....and your home sounds so very doable - one step at a time! You've got this!
DeleteMy credit score it's important to me because it opens up opportunities to have better options when in search of a lender or extend my line of credit. I will utilize the information given to us in class to check my credit and see if their is any discrepancies and dispute them, resolve and ensure they are eliminated from my credit history. Others steps I will take is to keep to a limit the use of my cards and ensure payments are made on time.
ReplyDeleteSounds like some solid action steps you have planned here! I hope all is well with your credit report ...and if not, you have the tools and support to correct it! Here's to limiting the use of credit cards! Onwards & Upwards!
DeleteI agree and will take this advice, because truthfully i put myself in a space where im digging myself out and some reckless, some necessity..
ReplyDeleteI hear you, Onika. I have done a few reckless things - even since our class started. I am owning them - as it sounds like you are doing - and I am practicing not shaming myself, rather allowing myself to be confronted by my choices, rectify them as I can, and re-commit. I once had a coach tell me that if I muck up, simply re-commit and practice anew. I am practicing that, though 'beating myself up' has been my go-to ...so not doing that and being compassionate is definitely a practice for me. I don't succeed with negative self-talk so let me try something new for a practice - accountability and loving kindness with my self. Here's to living into health & well-being with our fiscal choices!
DeleteI honestly never paid attention to my credit score growing up, but I did always know in the back of my head not to any get credit cards and misuse them, so I never got one until about 3 years ago in my 40's I always paid cash for everything I purchase, without realizing that not having credit was as bad as having bad credit. I learn the hard way.
ReplyDeleteSo, about three years ago my fiancé started teaching me the importance of credit. I went to my bank an opened a credit account, I put $300 and use it as I would a credit card. I should also be graduating from the program. They spoke about it in this class.
I do be confused with the whole process, especially now when I went for a car loan. I was so afraid to get into one, but I had no choice for emergency purposes I got into it. through that process I realize the importance of credit. I have a couple different apps and they all had different amounts. I went to 2 institutions, and one stated my credit score was 670 and the other stated 710 but then the apps were saying something else. I currently have Experian and credit karma and they both say 726 for me that's pretty good. Still learning. This class was an eye opener as well. I learn a couple new things.
Credit now is very important to me. Having the apps on my phone allow me to constantly watch them. I review them and I also saw something that wasn't supposed to be there and disputed it. Now I am working on removing it from the other account.
Teaching my kids about credit is important to me as well. My oldest is 21 and she is managing pretty well her fiancé also supports her on that as it is very important to him. My son just turned 18 and he has a custodial account with me. We have spoken about opening a credit account and also separating his account from mine. Is in our to do list. As I learn through this class, I have taught them a thing or two. I will continue to take my credit serious as purchasing my own home is in my future goals and that plays a big factor.