So listen. I have decided to share my credit problems with you. I consider credit to be a very important topic to discuss. As a matter of fact, if it were up to me it would be taught in every secondary school nationwide. When we are young we don’t realize how important it is to have a good credit score….

I got my first apartment when I was 18 years old. I had no job; I was on welfare with my first child. I had quit high school to get my GED. In my apartment I started out with crates to sit on, a small TV, floor lamp, and a mattress on the floor. Trust me guys, it was BAD. My first telephone company I ever had was ATT. This is when I would soon discover the world of credit. When I got tired of that company, I would cancel service, not pay, and move to the next company, and so forth. I did this to the point that I had ran out of phone companies to choose from! At the time I thought it was funny, you know, I was young and naïve not realizing what I was doing to my credit score. Worst is I didn’t even have credit! As I sit and type this I look back and now realize what I was doing. When I got up on my feet a little, I then start applying for colleges. Not really knowing what I wanted to do in my life, I kept on changing my major over and over, to the point where I dropped out and owed the school $300 dollars. Again, I didn’t care because I didn’t take my credit seriously. Then I applied to a community college, attended for a good year, became lost and confused, quitting, and owing the school $500.00. Again, not realizing this was hurting my credit score.

To bring you up to date, here is what recently happened that really caught my attention…. In I believe 2007 I was fortunate to purchase my first car despite my low credit score. It was a 2000 Toyota Camery. Yeah, it was old, but it was nice! Silver and had a sun roof! I only had to put $500 dollars down on it. My car note was $386.88, and my insurance was around 100 bucks. To make a long story short, I started having trouble paying the car note. I would send them what I could, hurting my credit score even more. Next thing you know, I’m looking out my living room door watching repo take my camery.

So now I sit with a repo that has probably hit my credit report by now. How do I feel? Terrible. Not only because I have to share a car with my husband, but cause should I have thought about the long term first.

So now I have made a goal and vouched to myself I will make every attempt to fix my credit! Even though that repo may be fresh on my credit report I refuse to give in. I will keep this post updated with my progress, and feel free to share any thoughts or suggestions with me!

No credit vs bad credit

In the world of credit there are so many questions. I’m quite sure you may have wondered this at some point of your life. “Is no credit better than bad credit?” Well, let’s see…

When I first became financially independent, I started out under the impression that no credit was way better than bad credit. I always thought I shouldn’t have any problem getting anything I wanted, after all it’s not like I have bad credit! Time and time again though I would get turned down! I would scratch my head and wonder why……….

To get straight to the point here is the scenario:

Bad credit is no worse than no credit. The thing with bad credit is that you are shouting to the potential lender “Hey I’ve had credit in the past but I got a little jammed up!” On a serious note thought, you are showing that lender you had a chance to show your credit worthiness but didn’t follow through. Now a person with no credit is simply just that “NO CREDIT.” Which means that person has not applied for credit, has no credit on file and has an opportunity to show their credit worthiness. Neither situation is better than the other, but a person who has no credit has a better chance at getting picked as opposed to someone with bad credit.

I have no credit. How to I get credit? In my opinion the best way to start building a good credit score history is to apply for a low interest, small department store credit card. Buy one item, and then pay off that item on time. Not only are you showing the lender they can trust you, but you’re also adding good marks on your credit report which will definitely benefit you when it’s time to buy that house or new car!

Once you’ve shown you can handle that, another good idea in building a good credit history from no credit is to apply for a long term loan such as for a car or mortgage. ( Only if you are sure you can afford it) If you are able to maintain payments on time and never be late, this not only puts good markings on your credit report, but also makes your lender feel good they can work with you. So if by any chance you come across a time where you can’t make a payment, if you have a good payment history they may give you an extension! (Just try to avoid that and don’t make it a habit, as it can come back and bite you in the rear end!

So bad credit, no credit, whatever the case maybe, you still have to do some work to get your credit score where it should be!

We often do not realize how much credit affects out lives. We has humans are often enticed to spend money on things we necessarily don’t need. Now don’t get me wrong, if you have the money by all means that is ok! But what if you don’t have they money? And it is something you may need or want? What do you do then? Well, often the first thing we may reach for is a credit card. I mean, aren’t they appealing? Some of them give us a $1,000 dollar limit or maybe even $500. We then feel we are ok to spend as long as we don’t go over our limit and pay the items that we buy off on time. Unfortunately, it often does not happen that way. We spend over our limit, get hit with a fee, and then a mark is thrown on our credit report for being late! And if you don’t get back on track soon, it just seems to backfire even more.

Before you decide to get a credit card here are a few tips I suggest considering first:

• Take a look at your finances. Do you spend wisely? Do you budget well? If you have a savings do you actually “save” or spend more than you “save?” If you sit and analyze the way you handle money and find it not to be too appealing, think twice before applying for a credit card. If you are the kind of person that spends like crazy, especially on unnecessary things, nine times out of ten you will use the credit card the same way. Work on handling your money a little better first, and then decide whether you should go for paper or plastic.
• Are you disciplined enough? One sure way to draw you into debt quickly is from not having good discipline when it comes to spending. If you can honestly say, “Ok. I will get this credit card, only utilize it when necessary and not go over my limit.” Then be my guess and go for it; however, if you are one of those people who stand outside the shopping window holding your credit card in your hand debating whether you should go in our not, then maybe getting a credit card wouldn’t be a good idea right now.
• Never pay bills on a regular basis with a credit card. In my opinion, this is a BAD IDEA. Don’t get me wrong though you may come across a time where you don’t have the cash and a bill may be due. Ok go ahead use your credit card. But in my opinion, I wouldn’t make it a habit just because you wouldn’t want to set yourself up in any binds.

On that note, having a credit card is ok! Better yet, the higher your credit score the better interest rate you will most likely get! BUT BE CAUTIOUS! Shop around for the best credit card offers!  Know what you are getting into before you get into it. What you use credit for today can affect tomorrow!



Let’s face it. We all know that having credit problems can have negative effects on our lives. Not only is it a burden financially, but it can be stressful emotionally as well. Having good credit is a good thing, but often life circumstances happen that are beyond our control. We then feel like we have no other alternatives but to apply for high interest loans or credit cards that can send our credit ratings in a downward spiral if not handled responsibly. Even if you consider yourself in a credit crisis, there is still hope. Before giving up and throwing in the towel on that “number that determines what you can get in life,” there is help a lot closer than you may think. I will be honest, though. It won’t be easy. In order to fix bad credit it takes time, patience, and determination. So now you may be wondering, “Ok, well how can I fix my credit?”  Here I provide you with some helpful tips on how you can get on the road to improve your credit score.

Tip 1: The very first step is obtaining a copy of your credit report. I recommend contacting all 3 credit bureaus TransUnion, Equifax, and Experian, that way you can analyze all three and compare the information contained in them.  Annually, you are entitled to one free credit report. Once you have your credit reports, check for any errors and if you find any you can file a credit dispute with either the credit bureau asking them to remove the error, or the creditor themselves.

Tip 2: If there are any outstanding debts on your reports, come up with a plan to pay them off as quickly as possible. Contact the creditor you owe and inform them of your intentions to repay and ask if they can give you a payment plan. It is a good idea to pay off the ones with the highest interest rate first.

Tip 3: If all of your debts seem to be too much, there are credit repair services available. Contact any non profit credit counseling services to help you generate a plan to get out of debt.

Tip 4: Stick with your plan and work with any debt counselor you may have to repay all your debts. In the meantime, make a vouch to life a life that can help you re- establish good credit. Pay all bills on time such as rents, mortgages, light, gas, etc. Set up a spending budget and stick to it.

Tip 5: To avoid credit card debt, if you have any credit cards pay off the balance monthly to build good credit. Having a credit card is a blessing. Use it wisely.

A little advice from the heart:

Do what you can when you can. Don’t overwhelm yourself and get stressed out. As long as you make a plan, stay focused, you can repair your credit and live a more fulfilling life!

When it comes to having financial stability in your life, understanding your credit is a very important factor. So what exactly is credit? Let’s take a look:

Credit is when a particular lender allows you to borrow money for a financial purpose, and allows you to repay that money back in a particular time frame. Lenders often consider your credit score or FICO, which represents the credit worthiness of a person or likelihood that person, will pay off their debts. Lenders, such as banks and credit card companies, will use a person’s credit score to evaluate the risk that comes with lending monies to consumers. This is done by examining the credit score scale, which is based on a set of numbers ranging from 300 meaning extremely poor to 850, meaning top notch. So what if you are in between? How are you rated? Well, a good FICO score ranges from 700 or higher, which is considered excellent or very good credit. Lenders will give you better rates and discounts if your score is over 720, 740 or so forth. 680 to 699 are good scores. With these kinds of credit scores you are still likely to get a pretty good rate on loans. FICO scores of 620 to 679 is OK. You won’t be denied, but the terms won’t be as great either. FICO scores from 580 to 619, you can get away with it a little. You will still have a chance to get a loan, but only on their terms. Interest’s rates will be a lot higher, as opposed to having a score between 620 and 679.

Now here is where the trouble starts. If you have a score between 500 and 580, this is considered bad. Period. Don’t get me wrong, though. You can still probably get a loan, but you won’t like it.

Are you anywhere between 499 and below? My friend, I love you but can’t sugar coat this one for you. You are in serious need for credit repair help. Having bad credit can hurt you in a number of ways, and there is help out there. There are a number of credit repair services, agencies, and companies that will offer you solutions to repair bad credit. Very little can be done with scores in these ranges, so the first step I recommend is accessing your credit reports, plan, and start on the road to fixing your bad credit before applying for any loans.