Chances are you’ve heard the word “unprecedented” more in the past year and a half than you ever have before. That's because 2020 and 2021 have been a year of unforeseen challenges and for many it has been difficult to find the exact words to describe the experiences lived in the face of a pandemic followed by job loss and inflation.
We are collectively facing a new ‘normal’ and for many, it has had a direct impact on our finances.
This year, Chase released findings for its Slate Edge Credit Survey, and a majority of respondents indicated that they are actively trying to improve their credit post-pandemic. Additionally, 22 percent said that the pandemic had a negative effect on their credit score.
There are several indicators to keep in mind when analyzing the health of your finances. Adequate savings, manageable debt amounts, sufficient income, and clearly defined goals with a plan to achieve them. Credit is one of these factors and it is essential when it comes to making big purchases such as buying a house or a car; and over 80 percent of all audiences surveyed agreed that a good credit score enables them to hit life milestones.
As an entrepreneur, and new homeowner myself, credit has played an integral role in achieving life milestones.
While much is changing, the rules of credit haven’t. Your credit score is based on data such as your payment history, balances owed, the length of your credit history, the type of accounts you have, and recent credit report activity. All of this can be found on your credit report.
Leveraging credit is one of the easiest and most effective ways to revamp personal wealth. Credit cards can be helpful tool for improving and maintaining your financial goals when used properly.
So how do we adapt to this new normal?
As we head into the new year, it’s important to remain aware of how even slight changes can have major impact on our financial lives.