Leilany’s journey with Goodwill Industries of Central Florida’s Prosperity Planning program began in February when she met Prosperity Planner David Watson II. Her aspirations were clear: build her credit, increase her savings, and ultimately, purchase a home.
David and Leilany worked together to create a comprehensive budget and a detailed plan to tackle her debts. He recommended that she open a separate savings account and offered specific strategies to boost her credit score and reduce her debt. Leilany followed the plan diligently with her eyes firmly set on her goals.
One of her first actions was to remove herself as an authorized user from a family member’s credit card that negatively impacted her credit. She also paid down her own credit card to below 30% utilization, which is the percentage it needs to be below in order to see an increase in her credit score based on use of the credit card. These steps alone elevated her credit score from 661 to 695 within just 60 days. As her credit limit increased, her score further improved to 715.
With her birthday approaching, Leilany sought to fund her trip using a credit card that offered travel rewards. She successfully applied for a Capital One travel card, benefiting from a 0% interest rate on purchases and transfers for 15 months. This allowed her to enjoy a dream birthday trip to Italy and strategically plan to pay off the balance before the interest rate period ended. Additionally, she planned to clear two of her existing credit card balances, reducing her debt to just one card.
Although she initially hesitated to open a separate savings account, her birthday trip motivated her to establish a dedicated savings system, ensuring she stays on track towards homeownership.
Encouraged by her immediate successes and achievements, Leilany is now focused on saving $3000-$5000 to position herself to buy a home, aiming to bypass renting by the age of 23. She has already scheduled a meeting with a mortgage broker and a realtor to explore her next steps.