If you’ve worked hard to achieve and maintain a good credit score, it can be upsetting to see it drop. But “life happens, and sometimes how you react is going
By BEV O SHEA of NerdWallet
If youâve worked hard to achieve and maintain a good credit score, it can be upsetting to see it drop. But âlife happens, and sometimes how you react is going to blow back and affect your credit score,â says credit expert John Ulzheimer. People lose jobs, cars break down and pipes leak. Credit may be your safety net.
Painful as it may be, there are times when taking actions that hurt your score are prudent for your overall finances.
WHEN YOU HAVE AN EMERGENCY EXPENSE
If you have a big, unexpected expense that exceeds your emergency savings, using your credit cards to cover it can be a decent option.
Smart Money podcast: Pet Scams and Buying Different Home Types
Sean Pyles, NerdWallet
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Welcome to NerdWallet’s Smart Money podcast, where we answer your real-world money questions.
This week’s episode starts with a discussion about pet scams, including common scams people fall victim to and how to avoid them.
Then we pivot to this week’s two listener questions about buying different home types. First, a listener asked, “Can you please cover this topic, buying a new home versus buying an existing home? Thanks.”
Second, another urged us: Talk about the pros and cons of condos, co-ops, townhouse, duplex, stand-alone house. And what about those HOAs? Thanks!
Identify the gaps
Self-assessments as well as personal finance books and websites can help shine a light on what you don’t know.
Financial counsellor Bret Anderson of Colorado has spent much of his career helping incarcerated veterans get back on their feet and has also advised high-wealth clients. He says five things frequently predict who will manage money successfully.
Two habits – saving and investing – are crucial, he says. Good money managers also know how credit works, have a plan to build wealth and pay off debt, and know what passive income is and how to create it.
If anything on that list is unfamiliar to you, that suggests a starting point for research. “There are plenty of resources just a Google search away,” says Heather Winston, assistant director of advice and financial planning at Principal Financial Group.
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