Credit is a double-edged sword in communities of color. Discussion of finances, credit and creating a substantial path to wealth and independence are not part of most families’ conversations. I’d like to account it to a lack of knowledge. But shifting your ability to create wealth is possible. They say when you know better, you do better, so let’s delve into that. The financial sector is not my area of expertise, so I leaned on an expert in this field: Janeil “The Financial Pilot” Pierre, CEO of Sapphire Credit Consultants in San Antonio, Texas. Her knowledge on the topic is really extensive. “People with higher credit scores typically tend to be more confident and self-assured,” says Pierre. “Good credit is a sign of that a person is financially healthy, and financially healthy people have better cognitive function. They tend to think more positively when faced with challenges because they don’t have to worry about the outcome – even if they don’t have the cash, they have the credit to cover that untimely expense. “They travel differently, as they have access to some of the best credit cards on the market. Once they learn how to leverage their good credit, they also spend and invest differently. We can be more like them by first understanding how credit works, fixing the errors on our credit reports, building up our credit profiles and treating good credit like the asset it is. Because like the saying goes, ‘Cash talks, but credit holds conversations.’”Pierre provided the following tip to improve your credit: The No. 1 to improve your credit is to know what’s in your credit report. Pull a copy of each of your credit reports from sites such as annualcreditreport.com and look for errors. Once you’ve identified errors, you have a right to request that the credit bureaus update or delete the information. Your credit score is used to determine if you’re a person of character, worthy of the ability to purchase things like cars, houses, etc., and can also keep you from getting the job you’ve dreamed of. We don’t always understand this as teens and young adults. The decisions we make in our early adult years are vital and determine how we will be viewed for years to come. Imagine if financial literacy was offered in underrepresented communities, at little or no cost, how it would change the face of the financial landscape. The knowledge we have would increase and the power would be exponentially in our favor. It’s not too late until it’s too late. Don’t let your credit score, which generally ranges from below a 580 (poor), to 800-plus (excellent), say things about you that don’t align with who you are. Grant yourself forgiveness for the financial decisions you may have made. After all, wealth is health, and we want that in all areas of our lives.
First published in Black Mental Health Today, Spring 2023 (Vol. 7).