Imagine being denied a credit card or receiving higher interest rates simply because you’re a woman? It’s hard to believe now, as women are claiming their rightful space in business, leadership, and wealth; however, this was the case just a short 50 years ago. Women were required by law to have a male co-signer when it came to matters of money. Which, as a result, limited their independence.
That was until the Equal Credit Opportunity Act was passed on October 28, 1974 by President Gerald Ford (you can read the original press release via the NY Times here). This allowed women to apply for credit in their own names, which was a major stride towards financial independence!
While access has improved drastically in just a few decades, many women still face silent struggles when it comes to understanding credit and finances. That’s why I’m passionate about providing accessible financial resources and services, so women (and all people for that matter) can feel confident about their credit decisions and secure their financial futures.
Why Financial Literacy Matters
While lifting the law of male co-signers was a huge win for women, access alone didn’t move the needle towards progress overnight. Given the lack of previous education and opportunities surrounding the topic, the majority of women were left feeling uncertain about their financial rights and consequently, at a disadvantage.
The conversation of money amongst women even felt taboo and therefore silenced into secrecy. As you can suspect, this made matters more confusing. Technology and social media weren’t available back then to quickly look something up, leaving educational materials to the mercy of established societal structures…which of course, weren’t equipped to empower women.
Unfortunately, we still see hints of this today. This historical impact has trickled down, affecting modern-day women, which is why we see a great deal of uncertainty when it comes to credit scores, loans, and financial planning.
So how can we continue to change the narrative and empower women in wealth?
- Understand Your Credit Score: Credit determines not just loan eligibility but also interest rates and rental agreements. Educating yourself on what influences these scores—like payment history, credit utilization, and length of credit history—can help you make informed financial decisions.
- Build Your Financial Confidence: Competence breeds confidence! When you understand financial concepts, you’re more likely to take charge of your financial future. This confidence is especially powerful when negotiating salaries, applying for loans, and making investments.
- Tread the Financial Market Carefully: The financial market is filled with an abundance of options like credit cards, loans, and investment accounts. These can all be alluring and masquerade on empty promises if you’re not careful! Understanding the risks and rewards associated with each of these options, as well as being clear about your own financial limits, is essential for making choices that align with long-term goals and overall financial health.
- Plan for the Future: While the short-term goal may start as eliminating debt, the long-term goal should always be about accruing wealth. Women who understand savings accounts, retirement plans, and investments can better safeguard their success.
A Look Into My Financial Past
If you’re reading this, then you’ve probably heard my story before. I can’t stress enough how important it is to become educated on credit and surround yourself with communities that support you!
Before I became a credit coach, I was a young single mom navigating a divorce. I moved out of the house with my daughter, and moved in on my parent’s farm. I was driving a rundown car and working multiple jobs just to make my monthly bills. No one had taught me about credit, and I never asked. I just made assumptions. And mostly, I made in-the-moment decisions, rather than focusing on any long-term future. This was survival after all!
Needless to say, my credit started to plummet. Things I didn’t know could affect my score like a late car payment or a missed copay at the doctor’s, started to compound quickly. I didn’t realize how far gone things had become until I was denied an apartment. That’s when I knew I wanted a better life for my daughter and for myself.
I started to seek out all the information I could find. What was this credit thing all about? What made someone successful with it? How could I dig myself out of debt?
The more questions I asked, the more answers I found. Eventually, I found THE ANSWER and unlocked what felt like the secret code to financial success. I knew if I could do it, I could help others do it too. From then on, I made it my promise to do exactly that.
Here’s what I will say, my situation could have been much worse had I stayed in avoidance. When we get inundated with overwhelm, that’s often our response. Shut down and avoid.
What I learned is awareness and action are the only antidotes to getting out of debt and revitalizing your credit health.
So what can you start doing today to empower yourself? Can you log into FICO and see where your score stands? Is there a past due payment that you could start to chip away at? Is there an online course or mentor you could hire for help? Small stones move mountains.
I’ve been doing this for years and I can honestly say, never be embarrassed! We’re all figuring this life out together. Finances can feel like a mystery, but they don’t have to be! The sooner you start educating yourself and taking action, the better your outcome will be. And you deserve a life of financial freedom! Our ancestors would be so proud of our progress.
For more on mentorship and additional resources, check out my website here.
You can follow me on Instagram @creditjeanne where I’m always sharing free tips and advice.
Looking for quality on-demand credit education? My podcast makes for a great spot to dive into important topics and receive insights from industry leaders!
