For six months, one person did exactly what personal finance advice tells struggling people to do. They worked extra shifts. Sold belongings. Skipped meals. Every spare dollar went toward wiping out a $3,000 credit card balance. When the balance finally hit zero, they felt proud. That feeling lasted for only one evening. When they checked their credit score the next morning, it had dropped 28 points. After months of sacrifice, their reward was a worse score and fewer options. The post, shared in r/pover ...

Core Insights - The average credit score of individuals seeking counseling from GreenPath in 2025 was 582, a decline from 640 in 2020, indicating a worsening financial situation for consumers [1][7] - The average monthly budget shortfall for those seeking counseling increased significantly to $904 in 2025, up from $439 in 2020, reflecting rising prices and interest rates [4][8] - The average credit card interest rate for those seeking help was 28%, with the average rate on credit card debt at 22.3%, up from 16.28% in 2020 [6][7] Financial Counseling Services - GreenPath, based in Michigan, provides free debt counseling and budgeting assistance, serving clients nationwide via phone and internet [3] - The organization does not offer loans but helps clients manage their debts, with an average debt of $17,667 for those in their debt management program [12] - GreenPath's debt management program can lower interest rates, waive fees, and help clients pay off debts over an average of 50 months [13][14] Consumer Behavior and Debt Trends - Many consumers are relying on credit cards to cover everyday expenses due to affordability challenges, leading to a cycle of increasing debt [9][11] - The average budget deficit has grown significantly, with many households facing cash shortfalls of nearly $1,000 each month [3][5] - Consumers are encouraged to contact credit card companies directly to negotiate lower rates, as many issuers may be willing to assist [26][27] Proposed Legislative Changes - President Trump's proposal for a 10% cap on credit card interest rates has faced opposition from banking associations, which argue it could reduce credit availability [18][20] - Estimates suggest that a 10% cap could lead to over 136 million consumers nationwide losing access to credit cards [22] - The potential cap could force credit card issuers to change their business models, possibly limiting access for vulnerable consumers [24][25]

Key Takeaways If you pay off your student loans, your credit score might go down a little. Fortunately, the dip is temporary. For most people, saving a fortune in interest and improving your debt-to-income ratio is far more important than worrying about a few points of your credit score. If you're like this letter writer, and you've come into a large sum of money, you might be thinking about paying off your debts, like your student loans. Even though you'd be freed from monthly payments and save pot ...

With a looming deadline to preorder the new card, current users face a choice: opt in for a new bank partner and skimpier rent rewards, or see their account converted to a standard Wells Fargo card that offers no housing rewards at all.For points enthusiasts, Bilt 2.0 offers more opportunities to earn points that can be spent on hundreds of dollars’ worth of new statement credits. For the set-it-and-forget-it renter — someone who signed up with Bilt primarily to earn points on their largest monthly bill wit ...

Key takeaways New car loans had an average interest rate under 7%, while used car loan rates averaged nearly just under 11.50% in the third quarter of 2025. Your credit score plays a significant role in determining your interest rate, but other factors such as the lender, amount borrowed, length of the loan and economic conditions also play a role. The best way to secure a competitive interest rate on your auto loan is to shop around and work to improve your credit score. The average auto loan int ...

If you’re looking to improve your credit score fast, you might be interested in ChatGPT’s advice. When the artificial intelligence (AI) chatbot was asked how one could raise their credit score 150 points within six months, it said that a 150-point increase in six months is aggressive, but possible, if the credit file is established and the issues are fixable. Interested in improving your credit score? Here are the steps ChatGPT recommended. Also see six smart ways to get approved for loans and credit ca ...

There are several types of LLC loans to choose from. Before applying, consider the credit score guidelines and weigh the benefits and drawbacks of each option to determine which is best for your company.Limited liability companies offer legal protections from being held personally liable if your business defaults on a loan, but most lenders require all majority owners to sign personal guarantees.Traditional lenders like banks and credit unions generally prefer borrowers with good or excellent credit — typic ...

Core Insights - Credit scores are primarily backward-looking metrics that do not accurately reflect an individual's current cash-flow health or future financial security [2][3] - A significant portion of high earners, specifically 60% of those making $300,000 or more, still face challenges with credit card debt, indicating that credit scores may not correlate with financial stability [3] Group 1: Limitations of Credit Scores - Credit scores are based on historical data such as payment history and credit utilization, which do not provide insights into current financial health [2] - Many individuals with excellent credit scores still live paycheck to paycheck, highlighting the inadequacy of credit scores as a sole measure of financial well-being [3] Group 2: Benefits of Daily Money Check-Ins - Regular monitoring of financial accounts can help individuals identify issues before they escalate, promoting sound financial management [5] - Daily check-ins can help catch fraudulent transactions early, with fraud losses increasing to $12.5 billion in 2024 from $10 billion in 2023 [6] - Daily awareness can assist in avoiding overdraft and insufficient-funds fees, adjusting spending habits, and understanding true cash flow [7]

Core Insights - The case of Bryce illustrates the complexities of credit card debt and legal responsibility, particularly when family members are involved [2][3] - The average credit card balance in the U.S. was reported to be $6,735 in mid-2025, highlighting a common financial challenge faced by many Americans [2] Group 1: Legal Responsibility - Legal responsibility for credit card debt is determined by the account setup, not by who used the card; in Bryce's case, he is the primary account holder and thus legally responsible for the $40,000 balance [3][4] - The distinction between authorized users and joint account holders is crucial; authorized users can make purchases but are not liable for repayment, while joint account holders and primary borrowers are [4] Group 2: Impact on Credit Score - A high credit card balance can negatively impact credit scores due to credit utilization, which is a significant factor in credit scoring [5] - The large balance on Bryce's card can affect his credit report and future loan qualifications, emphasizing the importance of managing credit responsibly [4][5]

Core Insights - Credit scores for individuals in their 30s and 40s are generally strong, with millennials averaging 691 and Gen Xers averaging 709, both falling within the "good" range for credit approval [1][2] - Age alone does not guarantee a high credit score; factors such as payment habits, available credit, and frequency of new account applications are crucial [1][6] Average Credit Scores by Age Group - Gen Z averages a credit score of 681, Baby Boomers average 745, and the Silent Generation averages 760, positioning millennials and Gen Xers in the middle of the spectrum [2] - The score gap between Gen Z and Baby Boomers is 64 points, while the gap between millennials and Gen X is 18 points, indicating a plateau in scores during the 30s and 40s [3] Lender Considerations - Lenders categorize borrowers using FICO score ranges, with "good" scores typically leading to approvals for credit cards, auto loans, and mortgages [4][5] - Achieving a "very good" or "exceptional" score can unlock competitive rates, potentially saving thousands over the life of loans [5] Credit Score Improvement Factors - Individuals in the "fair" or "poor" range may face higher interest rates and larger down payments, but improving to "good" can significantly reduce monthly payments [6] - By the age of 40, individuals usually have a longer credit history and better credit behavior, contributing to higher scores unless impacted by financial difficulties [7][8]