Becoming Creditworthy

Written by FinFit on .
Becoming Creditworthy

An Ode to Creditworthiness

It’s a challenging time

Your finances may flail

Improve your creditworthiness

Don’t let the pandemic prevail.

Free weekly credit reports

Can keep you on track

Take positive steps forward

And don’t look back.

Capacity, character and collateral

Are key factors to consider

Lenders hedge against risk

Ensure your finances glitter.

Now is a good time to utilize free weekly credit reports offered by Equifax, Experian, and TransUnion to ensure you’re keenly aware of the current state of your financial situation. Be proactive in monitoring your financial health and take steps when you can to improve your creditworthiness. Character, capacity and collateral — the three “C’s” of credit — are established key elements used to determine creditworthiness. According to TransUnion:

  •       Character is defined by credit and loan repayment history 
  •       Capacity measures income and ability to service a loan or line of credit 
  •       Collateral refers to asset(s) that could be leveraged for payment 

If you are able to improve your financial health and stabilize your financial situation, you’ll have greater flexibility and options when it comes to financial decisions.

But during times of heightened financial stress, it’s even more difficult to focus on the most effective, appropriate actions. Financial wellness resources help guide individuals down the path to financial stability, providing education and recommendations that are most relevant to their unique circumstances. 

The first step is being able to appropriately assess your financial situation. What does financial wellness look like for you? Identify current trends and opportunities, and determine your financial goals that will ultimately help you improve your personal financial health. A holistic financial wellness program will be able to provide you with recommendations and resources that will position you to make more informed decisions around spending, saving, borrowing and planning.

Spending, saving, borrowing and planning are the four pillars of financial wellness.  These categories help you assess the current state of your financial health and overall well-being. The Consumer Financial Protection Bureau (CFPB) studied consumers across the country and concluded these four elements were universally acceptable as financial wellness:

  • Having control over day-to-day, month-to-month finances
  • Having the capacity to absorb a financial shock
  • Being on track to meet financial goals
  • Having the financial freedom to make the choices that allow them to enjoy life

Today, about 83% of employers offer a financial wellness program. If you aren’t sure if your company offers this benefit, check with your HR department to start your journey toward greater financial well-being. You’re not in this alone. There are people, like your employer, and resources available to help you regain and maintain stability. Minimally, take advantage of this opportunity to receive weekly credit reports to create awareness around your current financial situation, the first step toward improvement. 

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FinFit Loans are issued by Celtic Bank, a Utah-Chartered Industrial Bank, Member FDIC. Loans subject to credit approval. Residents of Colorado, Connecticut, Iowa, Vermont, West Virginia, Nevada and Massachusetts are not eligible for loans. Nothing in this advertisement constitutes an offer or solicitation for loan products to residents of those states. Actual time it takes for loan approval dependent upon loan verification set up with your employer.

Funding time dependent upon funding method selected. Expedited funding may incur additional fees.

Student loan services are provided by unaffiliated third parties. FinFit loans issued by Celtic Bank do not include student loans.

Wage Now is fully funded and managed by an affiliate of FinFit. If any fees apply, those fees will be disclosed prior to entering into any agreements.
Residents of California, New York, North Dakota, South Dakota, Tennessee and Vermont are not eligible for WageNow. This does not constitute an offer or solicitation for WageNow to residents of those states.

FinFit’s Financial Wellness Program, which includes educational content, a financial assessment and a financial dashboard, are free to registered members.
Services offered may incur fees and/or interest. All fees will be disclosed prior to entering into any agreements.
Products listed are a representation of FinFit offerings. Actual availability may vary. The products available to you and your organization will appear on your FinFit membership dashboard. Actual loan amounts and rates offered vary based on lender, credit worthiness and other factors.

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