Financial Fitness Tips: What affects your credit score?

Solid Ground’s Financial Fitness Boot Camp and ConnectUp team up to create financial fitness tips like these to send out through our Resource Wire

Financial Fitness Boot Camp Coach, Judy Poston

Financial Fitness Boot Camp Coach, Judy Poston

Your credit score is important! Keeping it high will allow you to take out loans in the future. Financial Fitness Boot Camp explains why the following actions are SAFE or HARMFUL to your credit score.

Checking my credit report: SAFE!

Checking your own credit report will not hurt your credit rating because that is considered a “soft” inquiry. Plus, you are entitled to check your own credit report under federal law. (A “hard” inquiry in your credit file is a record of any application for credit that you made.)

Getting married to someone with bad credit: SAFE!

Your credit score or credit rating will not suffer simply because you get married to someone with bad credit. By maintaining separate credit accounts for things like credit cards and car loans, a spouse with good credit can keep his or her credit rating from being impacted by the other spouse with a poor credit history. But, if you take on joint financial obligations, such as a mortgage, and the bill doesn’t get paid for any reason (including divorce), then that will impact both parties’ credit scores.

Renting a car with a debit card: HARMFUL! 

Believe it or not, renting a car with a debit card can hurt your credit. Why? Doing so can trigger a “hard” inquiry. In the fine print of many auto rental agreements is a provision giving the car company the right to pull your credit report if you pay with a debit card. Who knew?!

Paying in full a high credit card balance: SAFE!

Paying off a high credit card balance will not hurt your credit score. On the contrary, it should boost your credit score. According to FICO, 30% of your FICO credit score is based on the amount of credit card debt you have outstanding. Lowering your credit card debt generally increases your credit score.

Opening a new store credit card to get a discount: HARMFUL!

Opening a new retail store credit card can lower your credit score, mainly because the application will generate a “hard” inquiry on your credit report. So the next time you’re out shopping and a nice lady behind the counter tries to sign you up for a store credit card so you get a discount on your purchase, just politely say, “No thanks.”

Disputing a credit card bill with the credit bureaus: SAFE!

Simply disputing a credit card bill should not have any impact on your credit score. However, you should be aware that when a dispute is under review, that credit account is effectively “removed” from consideration in the credit-scoring process.


We invite you all to call the Financial Fitness Boot Camp at either 206.694.6739 or 206.694.6776 and make an appointment to see one of Solid Ground’s financial counselors. They can pull your credit report for free, teach you how to develop a budget/spending plan, show you how to read your credit report, and explain what to do if you need to dispute an item on your report. They would be happy to assist you with whatever you want to focus on to help you reach your financial fitness goals! Don’t delay, call today!

Financial Fitness Boot Camp helps people weigh options

Financial Fitness Boot Camp's Coach Judy

Financial Fitness Boot Camp Coach Judy Poston

A few weeks ago, a gentleman called Financial Fitness Boot Camp (FFBC) asking questions about budgeting, as well as how to pay off a huge credit card debt and a student loan. He is living in a transitional men’s shelter until April 2016, paying $465 a month for rent. He stated that he wants to move out of the shelter and live in his truck, and use the rent money to pay down his credit card debt. We asked him to come in so we could do a budget and look at the expenses he might encounter living in his truck.

After doing some research we found it would cost more to live in his truck. In addition, living in his truck could lead to the development of chronic health issues; imagine trying to sleep in a small truck with a height of 6’5”? He would use more gas as he moved from street to street. He might receive parking tickets which could lead to being towed. He would have to eat most meals out as he would have no food storage or way to cook food, and in addition, have no access to a bathroom, laundry or electricity. In order to stay warm in a truck that has no insulation, he would have to buy blankets and warm clothes. And lastly, he would have to make the costly move to put most of his possessions in storage.

When he came in for our meeting, he was very pessimistic. He was feeling hopeless and stated he was having a hard time holding on emotionally. Our Financial Fitness Coach Judy Poston showed him how his monthly expenses could easily more than double by moving into his truck. After we covered this information, he felt better able to weigh the pros and cons of living in his truck and make an informed decision. He said because we put the information in writing, his options were more was clear. Before he left, he decided that he would stay in the shelter, save money and explore new employment opportunities.

For more information about how FFBC can help you and members of your community, please contact Judy (financialfitness@solid-ground.org | 206.694.6776).

(Editor’s note: Thanks to Judy and DukeEngage summer intern Motin Yueng for contributing this article, which originally appeared in Solid Ground’s FYI.)

Big Picture News: Financial empowerment for all

Below is the Big Picture News insert from our Spring 2015 Groundviews newsletter. To read the entire newsletter or past issues, please visit our Groundviews webpage.

Financial Fitness Boot Camp Coach, Judy Poston

Financial Fitness Boot Camp Coach, Judy Poston

At Solid Ground, financial empowerment is integral to our mission to end poverty. Financial justice starts with helping people understand their personal finances, build resilience and achieve financial stability. On a policy level, we work to break down systemic barriers that keep people poor.

Our Financial Fitness Boot Camp (highlighted in the lead story of this newsletter) provides an important model for this work – but it is just the jumping off point for a much larger movement. In integrating financial empowerment across the Solid Ground community, we focus on people’s strengths to provide tailored support and access to resources so that everyone – including our staff and volunteers – can realize their financial stability goals and access opportunities to thrive.

We believe that…

  • Financial empowerment will help our community shift from generations of poverty to generations of financial stability.
  • Through education, people have the power to achieve financial stability.
  • Understanding personal finances develops individual power and furthers economic justice.
  • People are capable and resourceful in creating pathways to financial independence; with the right tools, they can make informed decisions.
  • Financial empowerment brings awareness of one’s own capabilities and strengths.
  • We can help alleviate fear of banking systems through financial empowerment.
  • We are cheerleaders for our clients’ pathways to financial independence.
  • All Solid Ground programs can instill the importance of building and saving assets.
  • Through financial empowerment, we can help people believe in their ability to become financially independent.

In line with these beliefs, our financial empowerment services focus on…

  • Basic Budgeting & Money Management: Creating savings and spending plans, prioritizing debts/expenses, and creatively thinking outside the box about how to manage money.
  • Understanding Credit: Developing a better understanding of the meaning of credit scores and awareness about what people can do to improve their credit.
  • Asset Building (income creation): Celebrating assets and asset-building accomplishments, and identifying ways to build assets and income-boosting supports such as tax credits and public benefits.

Some ways we’re weaving financial empowerment agencywide…

We discuss budgeting basics to help people maintain affordable housing. We connect people with job/training opportunities and resources. We provide nutrition and food budgeting education – focused on the affordability of healthy eating – and support people to grow their own food. And we work with banks to create opportunities for people to develop savings.

On a systems level, we support income equality and raising the minimum wage. We also advocate statewide for issues such as increased debt settlement regulation and consumer protections on payday loans. Combined, these efforts are creating systemic change to build a financially healthier community and economic justice for all.

This post taken from the Big Picture News insert from Solid Ground’s May 2015 Groundviews newsletter. To read the entire newsletter or past issues, please visit our Groundviews webpage.

#FinancialEmpowerment: Celebrating Financial Capability Month

This post was contributed by Kira Zylstra, Solid Ground’s Stabilization Services Director.

Solid Ground participated in CFED's (Corporation for Enterprise Development) Financial Capability Month.

Throughout the month of April, Solid Ground participated in the Corporation for Enterprise Development’s Financial Capability Month.

When Solid Ground’s April 7 blog post, Community Conversations, challenged me to #thinkpoverty and #talkpoverty in order to #endpoverty, I took this as a challenge to #thinkopportunity and #talkequity as well. Today, April 30, marks the last day of National Financial Capability Month.

In order to work towards achieving equity and opportunity for all, Solid Ground has set the goal of adopting the principles of financial empowerment across all of our programs and services. We recognize that Financial Literacy and Asset Building are critical components to our mission of ending poverty.

To celebrate Financial Capability Month, here are a few highlights of Financial Empowerment activities at Solid Ground from the month of April:

  • The Financial Fitness Boot Camp team hosted creative discussions with staff to recognize and celebrate the many ways we all incorporate financial literacy into our work.
  • Connected many community members to United Way Tax Preparation sites
  • Held several community workshops focused on nutrition and tenant’s rights which all included education on the importance of budgets and money management.

Solid Ground has had the opportunity to work closely with the Corporation for Enterprise Development (CFED), which has been sharing weekly updates, resources, and tools on Financial Empowerment to celebrate Financial Capability Month. Check out their latest here: Integrating Financial Capability.

We want to hear from you! Where do you see #FinancialEmpowerment in action in our community? Comment below or via Solid Ground’s Facebook and Twitter feeds!

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