Disability and Credit Access: Why Scores Are Key in a Situation of Crisis Advertiser disclosure: You're our primary priority. Everytime. We believe that every person should be able make financial decisions without hesitation. While our website does not feature every business or financial product that is available in the marketplace We're pleased of the advice we offer and the information we offer and the tools we develop are independent, objective easy to use and cost-free. So how do we make money? Our partners compensate us. This could influence the types of products we review and write about (and the way they appear on our website), but it doesn't affect our suggestions or recommendations that are based on thousands of hours of research. Our partners do not pay us to guarantee favorable ratings of their goods or services. . Disability and Credit Access The importance of scores in a Crisis Having good credit can help you get affordable interest loans as well as credit card to help you cover your bills in an emergency. Here's how to start. Written by Caitlin Mims Content Management Specialist Credit score, credit cards Caitlin Mims is a Content management specialist for the credit cards team at NerdWallet. Before joining NerdWallet she was the editor of CreditCards.com as well as Bankrate. Caitlin is a writer on personal finances for seven years. She has written about credit cards, credit scores, retirement planning and the financial issues women have to face. She is located at Denver, Colorado. Aug 16, 20, 2022 edited By Kenley Young Assigning Editor | Credit score, credit cards Kenley Young directs daily credit cards coverage for NerdWallet. Previously, he was an editor on the homepage as well as a digital content producer for Fox Sports, and before that a front page editor for Yahoo. He has years of experience in both digital and print media, with times as an editor at the copy desk as well as a wire editor as well as an editor of the metro of McClatchy. McClatchy Newspaper chain. Email:
. Many or all of the products we feature are made by our partners who pay us. This impacts the types of products we write about and where and how the product is featured on a page. But, it doesn't influence our opinions. Our opinions are our own. Here's a list of and . From the time Erin Noon Kay was little her mother taught her how to handle money. It's a great thing for every parent to learn however for Noon Kay, it was essential. She was born with cerebral palsy. In addition to general budgeting, she also needed to understand how to navigate the confusing government benefits system. Noon Kay -- who founded Claiming Disability, a company that helps people who are disabled through outreach and media representation explained that many disabled people do not manage their finances themselves. Instead, their finances will be controlled by a nonprofit or by their family members, which means they aren't taught the techniques for managing their own finances. "I don't think we're providing disabled people with a benefit by trying to protect them from the realities of their own life," says Noon Kay, 33. "Like the way my mom could have protected me from all these reality, it would have been a major shock." An often-overlooked area for financial planning is the credit. A credit score that is good ( minimum 690) means having options available in an emergency in the event that you lose your job or become incapable of working. But people who are disabled are less likely to be employed full-time and are less likely to earn per hour than those with disabilities, says Tom Foley, executive director of the National Disability Institute, or NDI. He also believes that the disability community is one of the most groups, making emergencies harder to manage. For some, going into debt is the only option. After all, the solution is not always as easy as spending less money. If you're suffering from disabilities, there are some costs which are usually viewed as necessities are in fact necessities. Foley gave the example of someone's air conditioning going out during the summer heat. If you have a disability and live in Georgia, getting that fixed isn't a luxury, it's probably necessary for survival. However, if you have bad credit (FICO scores of 629 or less) then your options for covering this are very limited. "It's all of these things all conspiring to make someone in a precarious financial situation, which makes it a lot harder to manage credit," says Foley. A 2017 NDI analysis of survey data of the Financial Industry Regulatory Authority, or FINRA found that those who are disabled are less likely to use credit card than average population and are much more likely to face debt and to use "alternative credit options" such as pawnshops and payday loans. Payday loans have APRs that can be higher than 300%. If you're in bad credit or zero credit there are options that will be more affordable to repay. For those with credit that is good, they are able to take advantage of better options including low-interest loans and low-interest credit cards. >> MORE: How to start building your credit Building your credit can be difficult when you're having financial difficulties. But it's not difficult. Most importantly, it boils down to knowing how to handle any debt you accumulate. In fact, Noon Kay credits her mother's financial education for the good credit she has today. Here's how to start: Create an account that gets reported to the credit bureaus. Most credit scoring models don't keep track of rent or utility payments, but credit cards and loans are typically reported to the . The process of getting a credit card is one of the most effective ways to be certain that your credit card will improve your credit score and there are alternatives for those with weak or no credit. (More about that later.) >> MORE: Make on-time payments once you have an account that's reported to the credit bureaus, make every payment on time because that's one of the most significant elements in your credit score. If you have credit card, you don't even have to pay off the entire balance. So long as you make your minimum monthly payment, you'll be able to safeguard your credit. Remember: Paying your minimum amount . Credit card interest will likely be lower than a payday loan, but the APR is likely to remain at or above the double-digits. If you're struggling to pay your minimum monthly payment make sure you call your credit card provider first. The issuer may have a plan solution to lower your monthly payments and keep your account in good condition. >> MORE Credit cards that could help If your credit isn't perfect, you might have some difficulties getting approval for a variety of credit cards, which includes the majority of rewards cards. But you do still have certain choices such as secured credit cards. Secured credit cards, unlike others, they require the deposit of cash upfront. After you've closed the account in satisfactory standing, and are able to upgrade it to a conventional credit card that is secured by responsible use over time , you'll be eligible to receive the cash back. Large issuers like Capital One and Discover offer secured credit cards. Since the deposit reduces the risk of issuers for credit this makes it much easier for those with bad or no credit to be accepted. In fact, it's possible to get secured cards that are even a bank account -but these cards may be a bit costly, for instance, annual charges or no upgrade paths to higher-end cards. Alternative credit cards based on your credit scores, you may be able to be eligible for an unsecured card that can use nontraditional underwriting standards to make approval decisions. They may still take a look at your credit score however, they'll also take into consideration other factors like earnings, employment, and banking information. It's not the most suitable option for every person. If you're on a , you might face some difficulties getting approved. It's a possibility to consider if your credit history is less than your other financial history. Make yourself an authorized user may also increase your credit score through being a part of another credit card account. You'll want to ask someone who has an excellent track record of financial management and makes every payment on time, since you're building your credit by piggybacking off of the account of their. As an authorized user you can get your own physical card and purchase using it, but that's not necessary; your credit might benefit without you ever having to use the card. But authorized users generally don't have the power to alter the account and are not responsible for the payment made on it. This responsibility falls to the primary account holder, meaning it's wise for the two of you to set rules and expectations prior to the time of your meeting. If you rack up costs that your primary account owner can't repay, each of you will have negative consequences to your credit. About the author: Caitlin Mims, a Content Management Specialist at NerdWallet that covers credit cards. In the past, she worked as an editor for CreditCards.com. On a similar note... Find the perfect credit card for you. Whether you want to pay lower interest or earn more rewards, the perfect card is available. Answer a few simple concerns and we'll refine the selection for you. Dive even deeper in credit Cards Get more smart money moves delivered directly to your inbox Sign up and we'll email you Nerdy articles about the financial topics that are important to you as well as other methods to help you make the most from your money. Take all the appropriate financial decisions

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