- Fortress University
- Posts
- How I Raised My Credit Score from 626 to 734
How I Raised My Credit Score from 626 to 734
A story from the worst time of my life...
Kerry Lutz
August 01, 2024
In partnership with
In partnership with
Take a demo, get a Blackstone Griddle
Automate expense reports so you can focus on strategy
Uncapped virtual corporate cards
Access scalable credit lines from $500 to $15M
How I Raised My Credit Score from 626 to 734
It was a moment of utter humiliation that pushed me to make a change. My credit cards were maxed out, and my old car was barely holding on. To make matters worse, I faced an embarrassing situation while trying to celebrate my daughter's birthday at a moderately priced restaurant. After handing over my credit card, it was rejected. I tried another card, only to face the same result. With a mere 10 percent tip in cash, I was humiliated and vowed never to be in that situation again.
Determined to turn my financial life around, I started by looking at my expenses for the first time using Quicken's financial tools. I was shocked to see where my money was going. I was spending over $100 a month on coffee alone and $20-25 on lunches. My cable TV bill had ballooned to nearly $200 per month. And that was just the beginning. Living in a warm climate, my 20-year-old, inefficient air conditioning unit was costing me twice what a newer model would.
Realizing the need for drastic changes, I began cutting unnecessary expenses. I started bringing a mug of coffee to work and brown-bagging my lunches, which saved me a few hundred dollars each month. I decided to cut the cable and switch to internet streaming services. For my AC unit, I took advantage of a special finance deal at a big box store that didn't seem to care about my low credit score. Even after the purchase, I was saving $100 monthly.
The most challenging step was asking my boss for a $5000 loan. Fortunately, he valued me as an employee and agreed to lend me the money, which I repaid at $500 per month—a significant relief compared to my previous credit card payments at 29% interest.
Within 90 days, my efforts started paying off. I had hundreds of extra dollars each month, my credit score soared to 734, and I finally had a reliable car in my garage. Now, I meticulously review my expenses every month, always looking for ways to save.
If I could achieve this turnaround, anyone can. Thank you for letting me share my journey.
At Fortress Credit, we help people get on the right path and restore their credit scores. We’ve worked with thousands of people over the years and haven a proven strategy for your success. It won’t be easy and it won’t be any fun either, but you will succeed. We won’t give up until you have a credit score to be proud of and you can acquire a new auto, home or other of life’s necessities.
For more information and a free consultation click here…
Understanding Inflation: Causes, Impacts, and Consequences
Inflation is a term that describes the general increase in prices of goods and services over time. It erodes the purchasing power of money, meaning that as prices rise, each unit of currency buys fewer goods and services. This phenomenon has significant consequences for individuals, families, and the economy as a whole, making it a critical issue for policymakers and central banks to manage.
What Causes Inflation?
While inflation has several causes as listed below, it is first and foremost a monetary phenomena. That means that as the government prints more dollars, they are chasing the same amount or a lesser number of goods and services. If you view the places you buy goods and services as an auction, people are bidding more and more dollars and therefore, the dollar’s purchasing power declines. While there are other causes of inflation, throughout the history of nations, monetary policy has been by far the leading cause. Of course unexpected events, such as natural disasters or geopolitical conflicts, can disrupt supply chains and reduce the availability of goods, leading to higher prices, but such shocks are temporary in nature and over time will resolve themselves.
Steal our best value stock ideas.
PayPal, Disney, and Nike all dropped 50-80% recently from all-time highs.
Are they undervalued? Can they turn around? What’s next? You don’t have time to track every stock, but should you be forced to miss all the best opportunities?
That’s why we scour hundreds of value stock ideas for you. Whenever we find something interesting, we send it straight to your inbox.
Subscribe free to Value Investor Daily with one click so you never miss out on our research again.
Why Is Inflation so Bad for You?
For the average American, inflation can have several adverse effects:
Erosion of Purchasing Power: As prices rise, the value of money diminishes, making it harder for families to afford essential goods and services. This can lead to a decrease in the standard of living, especially for those on fixed incomes or without wage increases.
Impact on Savings: Inflation reduces the real value of savings. Money saved in a bank account may lose value over time if interest rates do not keep pace with inflation, eroding the future purchasing power of those savings.
Increased Cost of Living: As prices for everyday items like food, gasoline, and healthcare rise, households must spend more to maintain their standard of living. This can strain household budgets and force families to cut back on discretionary spending.
Rising Consumer Credit Costs: Inflation often leads to higher interest rates, which increase the cost of borrowing. For individuals with mortgages, auto loans, or credit card debt, higher interest rates mean higher monthly payments, reducing disposable income and potentially leading to financial hardship.
The Government and Fed's Role in Controlling Inflation
To manage inflation, the government and the Federal Reserve may implement various measures, primarily focusing on controlling the money supply and interest rates. The most common tools include:
Get smarter on AI in 5 minutes a day.
The Rundown is the world’s largest AI newsletter, read by over 600,000 professionals from companies like Apple, OpenAI, NASA, Tesla, and more.
Their expert research team spends all day learning what’s new in AI and gives you ‘the rundown’ of the most important developments in one free email every morning.
The result? Readers not only keep up with the insane pace of AI but also learn why it actually matters.
Monetary Policy Adjustments: The Fed may raise interest rates to curb inflation. Higher interest rates increase the cost of borrowing, which can reduce consumer spending and business investment, thereby slowing economic growth and reducing inflationary pressures.
Fiscal Policy: The government can also use fiscal policy, such as reducing public spending or increasing taxes, to decrease the overall demand in the economy. Lower demand can help alleviate inflationary pressures.
Unintended Consequences of Inflation Control
While these measures can help control inflation, they may also have unintended consequences:
Economic Slowdown: Raising interest rates can slow economic growth by making borrowing more expensive. This can lead to reduced consumer spending and business investment, potentially causing a recession if done too aggressively.
Increased Unemployment: As businesses face higher borrowing costs, they may reduce expansion plans or cut back on their workforce, leading to higher unemployment rates.
Impact on Housing Market: Higher interest rates make mortgages more expensive, which can reduce demand for housing and lower home prices. This can hurt homeowners who may see the value of their homes decline.
Burden on Debtors: Higher interest rates increase the cost of servicing existing debts. For households and businesses with variable-rate loans, this can lead to significantly higher payments, increasing the risk of default and financial distress.
Conclusion
Inflation is a complex economic phenomenon with wide-reaching implications for individuals, families, and the broader economy. While measures to control inflation are necessary to maintain economic stability, they can also result in significant trade-offs, such as slower economic growth and higher unemployment. Understanding these dynamics is crucial for policymakers and the public to navigate the challenges posed by inflation and to mitigate its adverse effects on society.
Inflationary times are both an opportunity and a crisis. If you own assets that have a cash flow such as real estate or equipment, you will enjoy higher income as prices increase. As long as you don’t need to buy assets at inflated prices, you will profit accordingly. The problem is when you need to rent those appreciating assets. Your costs will go up and you will struggle to keep up with inflation, which is the position that most of the country finds itself in.
How to get a credit card with bad creditCREDIT CARDS > BAD CREDIT
7 MIN READPublished May 16, 2024
Written by Katie Kelton
Key takeaways
If you have poor credit and are interested in a new credit card, check your credit score first and consider which type of card would be best as you work to use credit responsibly.
A secured card can help you build or rebuild your credit. They typically require lower credit scores to qualify and may let you upgrade to an unsecured card with responsible use.
You could also become an authorized user on someone else's credit card, which allows you to use the card without undergoing a credit check. This can help build your credit.
Getting access to credit can be tricky if you have a bad credit score. But the best way to improve your credit score is by proving you can use credit responsibly. Knowing how to get a credit card with bad credit can help you start rebuilding your credit.
Take a demo, get a Blackstone Griddle
Automate expense reports so you can focus on strategy
Uncapped virtual corporate cards
Access scalable credit lines from $500 to $15M
/