CREDIT SCORES & CREDIT UTILIZATION
Your credit score affects more than loans—it impacts your insurance, job, and rent. Learn what truly affects your score, why credit utilization is key, and get expert, step-by-step advice on how to improve your financial flexibility today.
Knowing Your Numbers: The Foundation of Financial Confidence
During a recent coffee meeting, a successful professional woman in her mid-50s confided, "I make good money, but I honestly couldn't tell you exactly what I spend each month or how much I'll need for retirement." She's far from alone. Many accomplished individuals have only a vague understanding of their core financial numbers—and this knowledge gap undermines their financial confidence and decision-making.
The High Cost of Credit Card Debt in Today's Economy
In my decades of financial planning experience, I've observed that clients often misallocate their financial priorities. They focus on optimizing investments or tax strategies while carrying high-interest credit card debt. With today's average credit card interest rates around 22%—and some store cards charging up to 30%—addressing this debt should be your primary financial focus.
Making Your Emergency Fund Work Harder
For years, I kept an unnecessarily large amount in my checking account—a habit developed as a single parent of three active boys who seemed to generate financial emergencies with impressive regularity. Eventually, I had my own financial wake-up call when I realized I had $40,000 sitting idle, earning essentially nothing.