Most people do not realize how easy it is to get into debt, and how quickly it can happen. Your credit score reflects your decisions in purchases through your credit. Most do not even realize how bad things are until they go to purchase a house or their first financed car. These days, in the middle of the pandemic, it is harder to get credit due to the massive loss of jobs. The score used to be 620 at the least to get anything; now that number has jumped to 680. The best score is 800.
In 2016 I moved into a brand-new modular home. I decided that in 2 years I was going to buy a house and always have a place to live. I was going to find a good area that I could build in that kept its value and stay there until I made my next venture. But this time, instead of selling, I was going to keep the house and if I decided I wanted to move I would rent to a family member, or have my son live there and learn safely how to pay rent and utilities. But all this would take time, and I had no idea where my credit was. I lost my first house when the bubble burst back in 2010, and my connections in the mortgage business were null and void. Most of my co-workers when I was a banker were no longer working in the mortgage business. I started shopping for a good banker. I found 3 and let them all run my numbers and to see which one gave the best service. I knew I was not going to get far; I just started working on my credit but knew it would not be long and it would be back up. I just needed a starting number to work with. That number was a 594.
By the end of 2016, I took my credit from that 594 to a 680. My banker was shocked and excited. She did not believe me when I told her my plans, and a 680 was all I needed to let her go to work. We found there were other hurdles with my credit that prohibited me from doing what I wanted, but after working with my banker, and some time, I was able to surpass those hurdles as well. After some other personal situations and setbacks, I went after that house again in 2020. In November of 2019 I had fallen to a 620 score again, but my then situation required that I work fast to be able to afford my living situation and the only way to do that was to finally buy my house. I again went to work on my credit and by March I passed my 680 marker and got my score up to 720. I kept going and when I purchased my house in June of 2020, I had a credit score of 800. This number gave me a very low APR on my house, and due to a car accident that happened the same day of my closing, I was also able to get a better car, with about the same payment I was making on my previous vehicle.
Being a single mother with only one income, I am a master budgeter. I do not steal or have need for it. I kept my first house under control for 7 years while only making $10 per hour. I only work one job and know the importance of letting the body rest when it needs it. I do not shuffle money around, nor do I take handouts. I earn for everything I have and it all comes down to discipline.
