Credit Access and Disability: Why Scores Are Key in a Time of Crisis Advertiser disclosure We make you our top priority. Each time. We believe that everyone should be able make financial decisions with confidence. And while our site does not feature every business or financial product on the market however, we’re confident that the advice we provide as well as the advice we provide and the tools we develop are objective, independent, straightforward — and free. So how do we make money? Our partners pay us. This may influence which products we write about (and the way they appear on our website) however it in no way affects our suggestions or recommendations that are based on many hours of study. Our partners do not pay us to guarantee favorable ratings of their goods or services. . Disability and Credit Access What are the importance of credit scores In a Time of Crisis. Having a credit score that is good can help you get lower-interest loans and credit cards to help you pay for your expenses in an emergency. Here’s how to get started. Written by Caitlin Mims, Content Management Specialist Credit scores, credit cards Caitlin Mims works as a content management specialist in the credit cards team of NerdWallet. Before joining NerdWallet, she was an editor at CreditCards.com and Bankrate. Caitlin wrote about personal financial matters for the past seven years. She has written about credit cards, retirement planning, credit scores as well as the financial struggles women have to face. She is located within Denver, Colorado. Aug 16, 20, 2022 edited By Kenley Young Assigning Editor | Credit scores, credit cards Kenley Young directs daily credit cards coverage for NerdWallet. Before that, he was an editor of the homepage and digital content producer at Fox Sports, and before being a front-page editor for Yahoo. He has a wealth of experience in both digital and print media. This includes periods as a copy desk chief as well as a wire editor as well as a metro editor at McClatchy. McClatchy newspaper chain. Email:

. Many or all of the products we feature are made by our partners who pay us. This influences which products we review and where and how the product appears on a page. But, it doesn’t affect our assessments. Our views are our own. Here’s a list and . From the time Erin Noon Kay was little, her mom taught her how to handle money. This is a good idea for parents everywhere to teach their children, but for Noon Kay it was essential. She was born with cerebral palsy. In addition to the general aspect of budgeting, she had to understand how to navigate the complex benefits system of the government. Noon Kay was the person who started Claiming Disability, a company which advocates for those who are disabled through outreach and media representation — explained that a lot of people who are disabled don’t manage their finances themselves. Instead their finances will be controlled by a nonprofit or their parents, meaning they can’t acquire the necessary skills for managing their own finances. “I believe we’re not giving disabled people a favor by trying to protect [them] from the reality of their own life,” says Noon Kay, 33. “Like the way my mom would have sheltered me from all these reality, it would have been a massive shock.” An often-overlooked area of financial management is the credit. A credit score that is good ( of at least 690) is having options available in an emergency — in the event that you are fired or incapable of working. However, people with disabilities are already less likely to work full time and tend to earn less per hour than those with disabilities, says Tom Foley, executive director of the National Disability Institute, or NDI. The disability community is among the largest groups, making emergency situations more difficult to manage. For some, entering debt is the only option. In the end, the answer isn’t always as simple as spending less money: If you have an impairment, certain expenses that are often viewed as necessities are in fact necessities. Foley offered the instance of an air conditioner that goes out during the summer heat. If you’re disabled and you live in Georgia and need to fix it, this isn’t an option; it’s likely to be essential for your survival. Unfortunately, if you also have low credit (FICO scores of 629 or less) then your options for covering such are restricted. “It’s all these factors that put someone in a really vulnerable economic situation, which makes it much more difficult to manage credit,” says Foley. A 2017 NDI study of survey data from the Financial Industry Regulatory Authority, or FINRA discovered that those who are disabled are less likely to use credit cards than the general population and are much more likely to face debt and use “alternative credit services” such as pawnshops and payday loans. Payday loans have APRs that can be up to 300 percent. If you have bad credit or none at all there are options that will be more affordable to repay. For those with credit that is good, they are able to take advantage of better options including low-interest loans and 0% intro APR credit cards. >> MORE How to begin building your credit building your credit can be a challenge if you’re having financial difficulties. However, it’s not impossible. Most importantly, it boils down to knowing how to deal with any debt you incur. In reality, Noon Kay credits her mom’s financial lessons with the credit score she enjoys today. Here’s how to start: Create an account that is reported to the credit bureaus. The majority of credit scoring models do not keep records of utility or rent payments, but credit cards as well as loans are generally reported to the . Credit cards are one of the easiest methods to ensure that the account you choose to use will improve your credit score and there are alternatives for those with weak or weak credit. (More about that later.) >> MORE: Make on-time payments Once you have a credit card account reported to the credit bureaus, you must make each payment on time since that’s among the most important factors in your credit scores. If you’re using a credit card it doesn’t require you to pay off the entire balance. As long as you pay the minimum amount and you’ll be able to safeguard your credit. However, remember to pay your minimum balance . The interest on credit cards is more likely to be less than an payday loan, but the APR can still be within the double digits. If you’re struggling to make your minimum monthly payment, be proactive and call your credit card provider first. The issuer might have a offer to reduce your monthly bills and maintain the account on good condition. >> MORE Credit cards that could help If your credit is less than ideal You may have issues getting approval for some credit cards, such as the majority of rewards cards. However, there are some options secured credit cards, unlike others, they they require the deposit of cash upfront. After you’ve closed the account in good standing — or are eligible to upgrade it to a conventional unsecure card with responsible usage over time , you’ll be able to get that money back. Large issuers like Capital One and Discover offer secured credit cards. Since the deposit reduces card issuers’ risk, it’s easier for applicants with bad or no credit to be approved. It’s actually possible to get secured cards that are even bank accounts -but these cards may be a bit costly, for instance, annual fees or the inability to upgrade to higher-tier cards. Alternative credit cards based on your credit score you may be able to get an unsecured credit card which can make use of non-traditional underwriting criteria to make decisions. These cards might be able to look at your credit history, but they’ll also consider other factors like income, employment and bank information. This may not be the best choice for everyone. If you’re on a you might face some difficulties getting approved. It’s a possibility to think about if your credit history is weaker than your other financial history. Become an authorized user You may also increase your credit score through being a part of someone else’s credit card account. It is recommended to inquire with someone with an excellent track record of financial management and makes every payment on time, as you’re building credit by piggybacking on the account of their. As an authorized user, you’re able to purchase your own physical card and make purchases using it, but that’s not required; your credit may benefit without ever having to utilize the card. However, authorized users don’t have the ability to alter the account or be accountable for making payments on it. That liability falls to the account’s primary holder so it’s a good idea for you two to set expectations and rules in advance. If you accumulate fees that you can’t pay , then each of you may suffer negative impacts to your credit score. About the author: Caitlin Mims is a content management specialist at NerdWallet covering credit cards. Previously, she was an editor at CreditCards.com. Similar to… find the right credit card for you. Whether you want to lower your interest rate or earn more reward points, the right card is out there. Answer a few simple inquiries and we’ll be able to narrow the selection for the right card for. Dive even deeper in credit Cards Get more smart money moves delivered straight to your inbox Sign up and we’ll send you Nerdy articles about the topics in finance which matter to you the most and other strategies to help you get more from your money. Take all the appropriate financial decisions

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