Money for the Rest of Us

Just the other night I was out a bar with some friends- most of whom work at non-profits and I was reminded of why I set out to write this blog.  One of my friends casually mentioned that her credit card had been declined that day.  She said “I’m not worried though, I know I’m not over my limit.  It’s probably just because I forgot to pay my bill last month.  I left it at home when I went on vacation.  I paid it today.”

I couldn’t believe what I was hearing.  My friend didn’t even realize that by “forgetting about her bill” for a few weeks she could be ruining future opportunities.  When your credit score is low you are not just messing with money- but with your life.  Yes, you may have to pay more (a lot more) for interest on car payments or mortgages in the future, but you could also be denied access to certain life changing events.  For instance, in DC there is a very low apartment vacancy rate (1.7% as of six months ago).  When you apply for an apartment the renter almost always runs a credit check.  If 4 other people with a solid credit history want the apartment, chances are that you won’t get it.  Your credit score isn’t just about money—affects other aspects of your life.