She Strengthens

The Shocking Truth About Credit Scores

As I sat in my dorm room, eagerly awaiting the arrival of my first credit card, I couldn’t help but feel a sense of accomplishment. At 18, I had already secured a part-time job on campus and had been saving up for college since I was 16. I knew that building good credit was crucial, and I was determined to do things right.

Staying on Top of My Finances

I made it a point to pay my credit card bill in full and on time every month, avoiding unnecessary purchases and keeping my credit utilization low. My bank sent me regular updates on my credit score, which consistently hovered around 720 – a respectable score for a college student.

A Setback in My Senior Year

However, during my senior year, life threw me a curveball. I had to take out a private student loan and another credit card to cover tuition costs. Despite my best efforts to stay on top of my payments, I encountered a few unexpected expenses that set me back. But I remained committed to paying off my debt and maintaining a good credit score.

The Unexpected Twist

It wasn’t until I received a notice from my bank that I discovered a shocking truth. My credit score had plummeted by nearly 50 points in just one month. I was baffled – I had always made my payments on time, so what could have caused such a drastic drop?

Uncovering the Truth

After signing up for Credit Karma, I discovered a Discover card in my name that I had never authorized. The card was nearly maxed out, and there was a missed payment. I was devastated and felt betrayed. It turned out that my mother had opened the card in my name without my knowledge, using it to fund purchases I was unaware of.

Lessons Learned

This experience taught me two valuable lessons: the importance of regularly checking my credit report and the need for open and honest conversations about money. I realized that relying solely on my FICO score wasn’t enough; I needed to keep tabs on all my credit accounts. I also learned that secrecy around money can lead to more harm than good.

Moving Forward

I’ve since worked out a plan with my mom to pay off the debt she incurred, and I’ve made it a priority to check my credit report regularly. I’ve also become more open about my financial struggles, sharing my experiences with friends and family. My goal is to be debt-free by the end of 2020, and I’m determined to make it happen.

The Takeaway

Remember, your credit score is just one piece of the puzzle. Make sure to check your credit report at least once a year, and don’t be afraid to talk about your financial struggles. By being proactive and open, you can avoid the pitfalls of credit card debt and build a stronger financial future.