I capitalized on my artistic background to create the Money Storyteller Method, a mindset and accounting tool for business owners that makes even the most advanced financial strategies easy to understand and fun to implement. Expect frank conversations about leveraging our most valuable assets - money, time, creativity, team leadership, and YOU!
Open this if you want a better credit score
Hey Reader,
Let’s dispel some common myths about money…
Having a low credit score means you are doomed financially!
Eh… maybe?
I disagree with a lot of financial educators here – I don’t think your credit score is an accurate measure of your financial health. Furthermore, I don’t think it’s risky to have a low credit score.
Because a low credit score only matters if you are seeking more debt.
Having a low credit score means you will have to pay a higher interest rate when you take on new debt or that you may not qualify for a loan at all. That can certainly be bad news.
But if it’s a true emergency and you absolutely need cash now, you are probably willing to take on a loan no matter the interest rate or how hard it is to find.
If it’s not a true emergency, then more debt is probably not the ideal solution. And y as you strengthen your financial foundation with other strategies, your credit score will take care of itself.
I know, because I’ve seen my own credit score tank through ignorant financial moves.
I once let a shady car dealer “find” me a car loan. What he really did was sell my information to every bank on his list, who all ran credit checks against me, and tanked my credit score 150 points in a single day.
For reference, the only other way to lose 150 points on your credit score all at once is to declare bankruptcy. This man basically torpedoed my ability to find credit.
A year later, my credit score was recovered. I wasn’t focused on my credit score either, I simply let my strong financial foundation do the work for me.
(Pssst… the 3 core pillars of a strong financial foundation are covered in my Unstoppable Program. If you’re a female business owner who’s seeking to scale past 30K a month, you might want to check it out.)
So what are three things you can do to improve your credit score, even if you’ve never been this far in debt or never had your score so low?
1) Release shame
Shame, the feeling NOT that you DID something bad, but that you ARE something bad, is the reason that many financial messes spiral.
Financial setbacks are often started by things outside of our control, yet some people internalize these setbacks and start to believe they are just bad with money.
Opportunities for improvement are then overlooked because such opportunities don’t feel real. They contradict the worldview that says “I’m bad at this. I can’t do it.”
If you really want to improve a low credit score, you’ve got to release any shame you have about your financial situation. You are not the problem and you CAN learn to do better.
2) Find the true cause of your low score
The first step to releasing shame lies in identifying the true cause of your low credit score. Bad credit is caused by late bill payments, carrying too much debt, and defaulting on loans. What deeper story lies behind these behaviors?
Behind every debt is the story of something you value.
Student loan debt means you value education and improving yourself.
Medical debt means you’re willing to fight for your life or the lives your family.
Consumer debt (i.e. credit card debt) often covers up a deeper need that is not fulfilled. We might buy designer items to feel respected and confident, or travel to seek adventure, or say yes to every invitation because we value time with our friends.
Recognizing the story behind our financial mess helps us feel more in control and can help us identify creative ways to fulfill our deepest values without relying on debt.
3) Don't act like you're alone
It takes consistent action over a long period of time to truly improve a credit score. You have to reduce the amount of debt you carry, and you have to make your payments on time, every time.
If that’s not your pattern of behavior now, then you should make it easier on yourself by seeking help.
There are credit counselors and financial coaches who can give you 1:1 attention or groups like debtors anonymous for community support.
You can also use tricks like setting up automatic bill payments so that minimum payments are always covered.
(In Unstoppable, I help clients set up automatic, weekly payments of as little as $20 just to start building the habit of getting debt free. Simple Money Systems like this make a huge difference to your financial foundation.)
There are strategic reasons to be in debt. Maybe you want to invest in real estate or use a small business loan to help you scale. But even if you’re debt wasn’t “strategic” and your credit score suffered as a result, remember your Money Story doesn’t end here.
You’re continually writing a new Money Story for yourself, every day, with every small action.
To your success,
PS - A strong financial foundation has 3 Core Pillars: Money Story, Money Systems, and Money Map. You can build all 3 for your business in my Unstoppable Program.
You’ll unlock the ability to feel more creative, more free, and more stable even as your business income goes up or down… and you’ll see your credit score improve too! Click here if you want that.
Hi! I'm Katherine, actress turned accountant
I capitalized on my artistic background to create the Money Storyteller Method, a mindset and accounting tool for business owners that makes even the most advanced financial strategies easy to understand and fun to implement. Expect frank conversations about leveraging our most valuable assets - money, time, creativity, team leadership, and YOU!
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