By Ana-Paula Monteiro
Danyelle H., a 27 year old mother of two, came to CAPP in November of 2017 looking for direction in financial planning for future homeownership.
Where She Was:
“My credit score was being affected by student loans that I had put on the back burner. I was on an income based repayment plan that I couldn’t afford anymore. I didn’t realize that the interest builds up. I didn’t understand why the payments weren’t coming down. I had the mindset that, if I left it alone it would just go away.” Danyelle H.
Although Danyelle held a retail manager’s position at popular clothing store, she enrolled in CAPP’s IDA Prep services to better understand and improve her low credit score. The services allowed her to learn financial management skills. Rose, the IDA specialist, reviewed the Your Money, Your Goals financial empowerment toolkit on debt and bills and Danyelle was faithful in following the action plan.
Rose referred Danyelle to Capital Good Fund’s Credit Builder program. They assisted her in consolidating her student loans and brought her monthly payments down to $66.
Capital Good Fund also helped her open up a secured credit card and develop spending habits to improve her score. To support her saving efforts, Rose referred her to SaverLife, where she earned a $10 reward for every $20 she saved monthly for up to 6 months.
Within Six Months:
- Increased her credit score by 30 points, moving up the credit scale from “poor” to “fair” status.
- Built up several thousands in two savings accounts; one for emergency purposes only.
- Was able to pay a $500 refundable deductible for an unexpected car accident because her savings served as a cushion.
- Is scoring 69, above the US average of 54 in her peer group, on the financial well-being scale.
- Accepted a job offer as Senior Merchandising Manager with a $16,000 annual pay increase.
What Lies Ahead:
Danyelle continues to work with Rose on her journey towards economic self-sufficiency and is looking forward to her next step…attending a First Time Homebuyer Education class.
“I plan to buy my first house within the next three years.” Danyelle, H.