AIR DATE MARCH 10, 2022
Title: Credit Education
Emily looks closely at the importance of good credit and how to raise credit scores as a step toward financial freedom.
Guests and Locations
Florida Consumer, Business Development Manager – Ana Garcia
UF/IFAS Orange County Extension, Agent I – Family & Consumer Sciences – Jenny Rodriguez
Credit Scores: How to Improve Them & Find Resources in Central Florida
In today’s world, our credit scores strongly influence our financial state. From buying a home to something as simple as putting a new purchase on a payment plan, your credit score rules it all.
While this number is essential, many people have no idea how it works and influences their financial freedom. According to Fortunly, one in five Americans between ages 20 to 29 don’t even know their credit score.
So, I sat down with Ana Garcia from Florida Consumer and Jenny Rodriguez from Orange County Extension of UF/IFAS to learn more and share with you the ins and outs of credit.
Why Do You Need a Good Credit Score?
“Well, first of all, the credit score is the way you pay, how you pay, and for how long have you been paying your debts,” explains Ana.
Jenny adds, “So, to have a good credit score is basically an opportunity for you to be able to apply for a mortgage, loans, a credit card, etc.”
Your credit score is like a magic number that tells a company, lender, etc., if you will be a good debtor or not. You need a good credit score to convince that company or lender to give you what you want, whether it be a low interest rate or approval for a loan, purchase, or rental.
If you have a good credit score, doors are open for you that are closed for others.
What Contributes to a Bad Credit Score?
Several factors may contribute to a bad credit score. One common problem is scams.
Ana says, “There’s a lot of people performing scams. Someone could have stolen your identity, and you don’t even know until you pull your credit. So, it’s very important for you to pull your credit at least once a year.”
However, be careful not to pull your credit too many times. Ana reveals that too many hard credit inquiries are one of the main reasons people have low scores.
Missed payments, as well as not paying your monthly minimum, will also contribute to bad credit scores.
How to Raise Your Credit Score
“Typically, you know 750 to 850 is the range of a good credit score. Anywhere between 300 and 649, now we’re talking, you know a bad score, and you need improvement,” Jenny reveals.
So, how can you raise your score? Well, Ana advises to see a counseling agency and review your whole credit report.
She goes on, “Of course, pay on time or as expected, that’s 35% of your credit score. If you have five or six cards, you can reduce it to one. You can consolidate your debts and reduce them, so you’ll have a lower monthly payment.”
Conclusion & Resources
Florida Consumer provides financial education and financial counseling to the entire state. “If you need to have your credit reviewed, if you need to work with your student loans, anything you need as to financial aspects, we can help you with,” Ana says. You can call them at 479-300-0950 for more information.
Aside from Florida Consumer, Central Florida residents can also receive financial education and utilize money management tools from the UF/IFAS Extension. Jenny ends, “Just reach out to Extension. We are off of South Conway. We have a lot of agents that can walk you through step by step on how to organize yourself, your finances, and reduce your debt.”
