Anyone else repairing a 💩credit score and having FUN doing it?!

jikajika·Jul 29, 2020

Posted in:Money

At the beginning of this year, I started taking my financials seriously.So much so, that I made a spreadsheet.And you know 💩gets real when spreadsheets are involved...I created my spreadsheets. 📊Found some DOPE YouTubers who gave DAMN GOOD financial advice! 💁🏾Immediately got Credit Karma and CRINGED at my credit score. 🤢Got the Stash app so I could start putting money into a Roth. 💰Found a good bank with the highest APR for savings (American Express, from what I found). 💵Cried when I saw the interest rates on some cards. 😭And almost punched through a wall, like I was Hulking out, when I saw that some of my student loans weren't going down because the money was ALL GOING to the interest 😵😵😵👻It can be scary looking at this stuff with a fine tooth comb, but when you have strategy on the brain - it all turns into a BIG GAME!And, right now, my credit score is the score board.I'm learning other things about investing, index funds, the tax benefits of buying a house, etc.But right about now, it's all about increasing my credit score and lowering my credit card debt (to start) to NADA!And I'm having so much fun doing it!Anyone else getting their finances in line?BONUS: I'm rereading Ramit Sethi's book, "I will teach you to be rich".He's practical AF, has a great sense of humor, provides scripts for talking with credit card companies, breaks money & credit down to the basics, gives you a framework for getting your 💩 together, and more! I HIGHLY recommend this for people just starting to build credit, or who want to repair it.💪🏾🙌🏾😝

DeNicea·Jul 30, 2020

Lovin' this post! I'm working on this myself. Learned about my Sacred Money Archetypes. Actually did some bookkeeping for business. Working on paying balances of credit cards, too. Close some accounts so there's 2 major accounts and that's it. Wanna start an SDIRA. Looking at getting real estate license and learning about investing that way with low-cost properties.

stephaniehoskins·Aug 04, 2020

You may want to reconsider closing accounts for two reasons: 1. The average age of your credit accounts is what they use in the formula, so if you close two accounts that are 10 years old and you’re left with two that are only a couple of years old, it will hurt your score. (If you close newer accounts, it could raise the age and help a bit.)2. The bigger chunk of the formula this impacts is your credit utilization and open credit. If you have $4,000 on one card and your total credit lines are $40,000 then you are at 10%, but if you close lines then that denominator shrinks and increases your utilization percentage which has a big impact on your score. Something to keep in mind when closing accounts!

jikajika·Aug 04, 2020

Yeah, that credit utilization is no joke...

jikajika·Jul 31, 2020

Yassss!!! Isn't it dope when you see that $0 balance on your credit card?!I like to play Lonely Island's song, "Like a Boss!" when I do that - LOL!I've never heard of an SDIRA. I'm going to have to google what that is.Thanks!And remember, you're doing awesome - keep that 💩up.

stephaniehoskins·Jul 31, 2020

Yay! I teach finance to undergrads and launched a fintech startup that helps people negotiate and pay their debt. It truly brings joy to my heart to see people take control of their financial lives and go after their financial literacy. Bravo for sharing the info and speaking openly! I feel like debt is the last 4 letter word. People are so open about every other aspect of their lives. I see posts about sex, infertility, exposing nipples, imposter syndrome, mental health, etc. It’s awesome that nothing is off limits, so let’s get the debt conversation out of the shadows! Women need to talk about their salaries, bonuses, investments, debt, loans, interest rates, costs of home ownership, credit scores, and so much more. I do feel like it’s happening more and more. Here are a couple of tips that you maybe haven’t heard yet- once you’ve paid your credit cards on time for 6 months, you can call up and ask for an interest rate reduction and a credit line extension. I used to do this every 6 months when I was in my 20’s and building my credit score. Also, for those unable to pay their student loans- you can still improve your credit score while not paying student loans. It does not mean you are doomed to bad credit! Good luck! I always felt like it was a game too :) I bet that’s why I love finance so much. I think it started with Girl Scout cookie sales and troop budgeting ha ha

jikajika·Jul 31, 2020

Oooooh! I didn't know that about credit cards (ask for an interest rate reduction and a credit line extension every 6 months).Let's see who gives push back, but I'm down for this! Thanks!@stephaniehoskins, question: How much of a credit line extension is a good amount for 6 months? Like $500 extra?

stephaniehoskins·Aug 04, 2020

It depends on your current line with that card. I think I typically saw a 10-20% increase. And if your salary has changed since you opened the card, you can update them with the new info. Just make sure they aren’t running a hard inquiry. My conversation was always “hey, I’ve made my payments on time for a while and I was wondering if you could lower my rate? What about an increase to my credit limit?”. I’ve heard that banks are rationing credit more right now due to the uncertainty and the fear that people will start relying on their credit cards. So it may not be as successful but doesn’t hurt to ask!

jikajika·Aug 04, 2020

Perfect! Thanks for this advice!

chihee·Jul 31, 2020

Awesome, and good for you @jikajika! So cool to see you post this here on Elpha.Here are a few other tips:- I found out that Experian has a free offering called Experian Boost that allows you to get some credit for phone and utility bills you’ve paid on time. And I just read the other day you can add Netflix payments too (interesting). It boosts your score in a matter of minutes. The average "boost" they say is 13 points. I did this and it boosted about 8 points. - If you’re applying for credit cards, inquiries from several lenders at once can ding your score. But this isn’t the case for mortgages, student and car loans. All inquiries for mortgage, student and car loans within 45 days of each other are counted as a single inquiry! Have you thought of refinancing your student loans? Rates are super low now and you should 100% comparison shop. I'm assuming you have private student loans here...- Check your credit report for errors, and make sure that it's on YOU and not someone else.- Don't close old credit cards that have no balance/no annual fee, they will add to your credit utilization (that, as you now know makes up 30% of your credit score)Hope this helps!Separately, me and my Co-founder at Finny are launching a free, personalized, and game-based financial education app soon (next month!). It's like Duolingo for financial education, stay tuned!!!

jikajika·Aug 04, 2020

After I read this, I IMMEDIATELY downloaded Experian and got IRATE at the Experian Boost commercials!You have cutie (and FUN-NY!) John Cena on a cow saying how Experian can boost your credit score - which...what does the cow have to do with anything and how can it boost my credit score???They're not specific!YOU JUST EXPLAINED IT BETTER THAN ANY OF THE COMMERCIALS!!!Hell, I'm even thinking about getting Netflix (AGAIN!) if it means it'll boost my credit score!!!Go figure it didn't boost my credit score, but I'm telling everyone I know who is working on their financials & credit score this year about this!Thanks so much super squirrel!

michelleolvera1·Aug 03, 2020

Go to myfico.com for a real credit score. Sites like nerdwallet and creditkarma are more 'vanity' based credit scores. Sign up for one month like 19.95 and get access to a real credit score. A friend of mine relied on her credit karma score to apply for a mortgage and found out her score was actually 15 points below what she received from CreditKarma. She got a mortgage but what if she was on the border of poor/good credit, ya know!

jikajika·Aug 03, 2020

Wow! 15 points below what CK told her?!That's a big deal.You raise a good point to check your credit score with multiple platforms before applying for ANYTHING!If I'm off by 3-5 points - okay.By 15?! I'd have to take a knee...