Didn't know April is Financial Literacy Month? Well, now you do. And what better excuse to get your finances in check or figure out how you'll add to your already lit bank accounts? Let's get into some knowledge about credit. It's an issue we all face as we look for ways to reach financial freedom and the best road to where the money resides. Sadly, the stats reflect harsh realities for many of us. Fifty-four percent of Black adults report having no credit or a poor to fair credit score (below 640).
Image via Giphy
Carmen Perez, Varo Bank's personal finance advocate and creator of MakeRealCents.com, a financial fitness platform, shares the good, bad and ugly on credit. Perez, an award-winning professional who's worked for Citi and Morgan Stanley, successfully paid off $57,000 of her own debt in less than three years.
"My finances were a hot mess up until I was able to commit to a plan," she shares. After facing a lawsuit from a private lender, she had to use her last bits of savings to hire a lawyer. She readjusted her budget, completely cut out luxuries like eating out and investing in cable, and reinvested her time into a photography side hustle to bring in more cash. She also kept a close eye on her finances and savings via the cash envelop system, and by the end of 2018, she was debt-free.
It's always good to know where you are before creating a plan to get to where you want to be. So, let's get into some credit 101:
Your Credit Score: The Basics
A credit score, also referred to as your FICO score, is a number that lets lenders know how much of a risk it would be to lend you money. The score ranges from 300 (the lowest) to 850 (the highest). "It is a benchmark that lenders use to gauge how likely a person is to pay back what they owe based on past data. The more you pay things back and on time, the better your credit can be, which can help you borrow money at a lower rate for things you may need," Perez says.
There are three major credit reporting bureaus, TransUnion, Equifax and Experian, and each uses different reporting methods, thus you could have up to three different scores.
"The misconception is that we have one credit score, which is inaccurate. We have multiple, and it depends on what we're applying or aiming for," Perez says. "Your bank, for example, could be showing you a FICO score that might be conducive to opening a credit card, but your score might be different when applying for financing for something else."
Also, various things can impact your credit score, from late bill payments or rental debts to outstanding medical bills and tax liens. On the positive side, a long history of maintaining accounts in good standing, or taking on debt that you're able to manage and pay back consistently over time, are all actions that can contribute to a great credit score.
You can access your credit scores for free via AnnualCreditReport.com, and each report will have specifics on the types of accounts you have on record (such as credit card, mortgage, and student or car loans), the date those accounts were opened, information on your credit limits or loan amounts, as well as details about your payment history. Credit reports also have history on where you've lived and sometimes where you've worked. You'll want to make sure all information is up to date and accurate, especially since some information could be from fraudulent activity, a reporting misake, or an old debt of more than several years that should have dropped off.
For more information on your credit reports, look into resources offered by the credit bureaus, including apps that offer weekly updates on your credit score, credit report information, and credit products available to you. Other easy-to-use and super-helpful websites on understanding your reports are CreditKarma.com and USA.gov.
Image via Giphy
Your Credit Score: The Good
The benefits of having a "good" credit score, which is one that falls generally at a 700 or above, is access to more housing options, more confidence when applying for a loan, and lower interest rates when you get approved. "Good credit allows you to secure better housing and, in some cases, will enable you to bypass having to put a deposit down if you rent," Perez adds. "If you plan on owning, good credit can help you secure a mortgage with better financing terms for you in the long-term. The lower your interest rate, the less you'll pay in interest over time."
"You'll feel less worried about getting denied, which can help you focus more on the things that matter, like negotiating a good interest rate."
But what about if you have no credit at all (i.e. no active accounts being reported to the credit bureaus or your credit history is so limited that there's no score)? Perez recommends getting a secured credit card, one that requires a deposit but offers other great benefits for people who haven't built credit.
"Get one at bank or financial institution that you're looking to have a long-term relationship with---one that offers access to other products. You might put up $500, for example, to open the account, and it will give you access to other products later that you might find beneficial such as home and auto loans."
She also urges women to put some serious thought and research into making decisions about what cards might be best for them. Looking to resources like Nerd Wallet or reading up on your current bank's credit card options (along with the fine print) are your best bet. Be sure to get details on annual fees, card closure policies, and payment protocols.
Image via Giphy
Your Credit: The Bad
In some cases, with a credit score that is below 640, a lender sees you as a higher risk for default or nonpayment of a loan. "If you haven't been good at paying back the money you've already borrowed, lenders will be more hesitant to lend you money," Perez says. "Since they are lending you the money, your loan terms, whether it be a mortgage, car loan, or credit card, will be more favorable for the lender than they will be for you. And since the lender is taking on all the risk, their reward is being able to charge you with a higher interest rate. Interest over time can add up and take away money that could be going toward your future self, like investing for retirement."
Though cash is king, when it comes to buying a home or even renting an apartment, you may need a cosigner to vouch for a loan. "Getting someone else to cosign on anything can be pretty tricky, especially when you already have bad credit," she continues. "You may also be subject to paying high deposits, which can deplete you of cash that could be going toward things like your savings or retirement."
Image via Giphy
Your Credit Score: The Ugly
In Perez's case, she was sued for an outstanding debt, and this is a common practice for some lenders as well as medical service providers and property management companies. Accounts that have reached collections stages and wage garnishments can not only deplete your pockets, but they can indeed negatively impact your credit score. A bad credit score can even affect your employment opportunities. "Sometimes employers will run a credit check on you before giving you the job," she says. "If your credit isn't in a good place, they may not extend the offer."
But you can take bad credit and turn your situation around. Perez recommends looking at all your credit reports and disputing anything that might be out of date or inaccurate. Then address the open accounts with balances that are past due. "Get on the phone with your lender. Explain your situation. See if they have a hardship program, and get the information on what that actually looks like. Get those details up front first, and then go from there." Perez also suggests freezing your credit card and pausing on use versus closing them, something that could negatively impact your credit. If possible, remain in communication with companies or lenders you owe to negotiate a plan for resolving your debt. "If you get the no the first time, continue to call to see if you can get yourself on a payment plan. That's better than [the lender] hitting up your credit because you're not making payments."
There are also credit-card debt relief options offered with the understanding that many are facing pandemic-related hardships, and community resources to get help in building budgets or exploring other debt-relief options.
Perez is also a big advocate of finding a way to earn more income via a side hustle and paying down at a pace that takes into account your current lifestyle and necessities. "Make sure you're prioritizing your bills. If you're in a hole and trying to make it out, it's time to put a budget in place and figure out where your money is going."
Are you a member of our insiders squad? Join us in the xoTribe Members Community today!
Featured image via Shutterstock.
- 5 Crucial Financial Questions You Should Be Asking Your Partner ... ›
- 10 Budgeting Apps That Will Get Your Coins All The Way Together ... ›
- 15 Steps Our Family Took To Improve Our Finances - xoNecole ... ›
- How I Paid Off $7,000 Worth Of Debt In 5 Months - xoNecole ... ›
- How To Build Your Credit Score From 547 To 800+ - xoNecole ... ›
- How To Buy A House With Bad Credit - xoNecole: Women's Interest, Love, Wellness, Beauty ›
RELATED
So, we handpicked one hundred It Girls who embody that palpable It Factor moving through us as young Black women, the kind of motion lighting up the world both IRL and across the internet.
It Girl 100 became xoNecole’s most successful program, with the hashtag organically reaching more than forty million impressions on Instagram in just twenty-four hours. Yes, it caught on like wildfire because we celebrated some of the most brilliant and influential GenZennial women of color setting trends and shaping culture. But more than that, it resonated because the women we celebrated felt seen.
Many were already known in their industries for keeping this generation fly and lit, but rarely received recognition or flowers. It Girl 100 became a safe space to be uplifted, and for us as Black women to bask in what felt like an era of our brilliance, beauty, and boundless influence on full display.
And then, almost overnight, it was as if the rug was pulled from under us as Black women, as the It Girls of the world.
Our much-needed, much-deserved season of ease and soft living quickly metamorphosed into a time of self-preservation and survival. Our motion and economic progression seemed strategically slowed, our light under siege.
The air feels heavier now. The headlines colder. Our Black girl magic is being picked apart and politicized for simply existing.
With that climate shift, as we prepare to launch our second annual It Girl 100 honoree list, our team has had to dig deep on the purpose and intention behind this year’s list. Knowing the spirit of It Girl 100 is about motion, sauce, strides, and progression, how do we celebrate amid uncertainty and collective grief when the juice feels like it is being squeezed out of us?
As we wrestled with that question, we were reminded that this tension isn’t new. Black women have always had to find joy in the midst of struggle, to create light even in the darkest corners. We have carried the weight of scrutiny for generations, expected to be strong, to serve, to smile through the sting. But this moment feels different. It feels deeply personal.
We are living at the intersection of liberation and backlash. We are learning to take off our capes, to say no when we are tired, to embrace softness without apology.
And somehow, the world has found new ways to punish us for it.
In lifestyle, women like Kayla Nicole and Ayesha Curry have been ridiculed for daring to choose themselves. Tracee Ellis Ross was labeled bitter for speaking her truth about love. Meghan Markle, still, cannot breathe without critique.
In politics, Kamala Harris, Letitia James, and Jasmine Crockett are dragged through the mud for standing tall in rooms not built for them.
In sports, Angel Reese, Coco Gauff, and Taylor Townsend have been reminded that even excellence will not shield you from racism or judgment.
In business, visionaries like Diarrha N’Diaye-Mbaye and Melissa Butler are fighting to keep their dreams alive in an economy that too often forgets us first.
Even our icons, Beyoncé, Serena, and SZA, have faced criticism simply for evolving beyond the boxes society tried to keep them in.
From everyday women to cultural phenoms, the pattern is the same. Our light is being tested.
And yet, somehow, through it all, we are still showing up as that girl, and that deserves to be celebrated.
Because while the world debates our worth, we keep raising our value. And that proof is all around us.
This year alone, Naomi Osaka returned from motherhood and mental health challenges to reach the semifinals of the US Open. A’ja Wilson claimed another MVP, reminding us that beauty and dominance can coexist. Brandy and Monica are snatching our edges on tour. Kahlana Barfield Brown sold out her new line in the face of a retailer that had been canceled. And Melissa Butler’s company, The Lip Bar, is projecting a forty percent surge in sales.
We are no longer defining strength by how much pain we can endure. We are defining it by the unbreakable light we continue to radiate.
We are the women walking our daily steps and also continuing to run solid businesses. We are growing in love, taking solo trips, laughing until it hurts, raising babies and ideas, drinking our green juice, and praying our peace back into existence.
We are rediscovering the joy of rest and realizing that softness is not weakness, it is strategy.
And through it all, we continue to lift one another. Emma Grede is creating seats at the table. Valeisha Butterfield has started a fund for jobless Black women. Arian Simone is leading in media with fearless conviction. We are pouring into each other in ways the world rarely sees but always feels.
So yes, we are in the midst of societal warfare. Yes, we are being tested. Yes, we are facing economic strain, political targeting, and public scrutiny. But even war cannot dim a light that is divinely ours.
And we are still shining.
And we are still softening.
And we are still creating.
And we are still It.
That is the quiet magic of Black womanhood, our ability to hold both truth and triumph in the same breath, to say yes, and to life’s contradictions.
It is no coincidence that this year, as SheaMoisture embraces the message “Yes, And,” they stand beside us as partners in celebrating this class of It Girls. Because that phrase, those two simple words, capture the very essence of this moment.
Yes, we are tired. And we are still rising.
Yes, we are questioned. And we are the answer.
Yes, we are bruised. And we are still beautiful.
This year’s It Girl 100 is more than a list. It is a love letter to every Black woman who dares to live out loud in a world that would rather she whisper. This year’s class is living proof of “Yes, And,” women who are finding ways to thrive and to heal, to build and to rest, to lead and to love, all at once.
It is proof that our joy is not naive, our success not accidental. It is the reminder that our light has never needed permission.
So without further ado, we celebrate the It Girl 100 Class of 2025–2026.
We celebrate the millions of us who keep doing it with grace, grit, and glory.
Because despite it all, we still shine.
Because we are still her.
Because we are still IT, girl.
Meet all 100 women shaping culture in the It Girl 100 Class of 2025. View the complete list of honorees here.
Featured image by xoStaff
Then there were those who gave up their zip code altogether and found a permanent home in the skies. After years spent recruiting students for a university, Lisa-Gaye Shakespeare became a full-time travel influencer and founded her travel company, Shakespeare Agency. And she's not alone.
These stories mirror the experiences of women across the world. For millions, the pandemic induced a seismic shift in priorities and desires. Corporate careers that were once hailed as the ultimate “I made it” moment in one's career were pushed to the back burner as women quit their jobs in search of a more self-fulfilling purpose.
xoNecole spoke to these three Black women who used the pandemic as a springboard to make their wildest dreams a reality, the lessons they learned, and posed the question of whether they’ll ever return to cubicle life.
Answers have been edited for context and length.
xoNecole: How did the pandemic lead to you leaving the cubicle?
Randi: I was becoming stagnant. I was working in mortgage and banking but I felt like my personality was too big for that job! From there, I transitioned to radio but was laid off during the pandemic. That’s what made me go full throttle with entrepreneurship.
Gabrielle: I moved around a lot for work. Five times over a span of seven years. I knew I needed a break because I had experienced so much. So, I just quit one day. Effective immediately. I didn’t know what I was going to do, I just knew I needed a break and to just regroup.
Lisa-Gaye: I was working in recruiting at a university and my dream job just kind of fell into my lap! But, I never got to fully enjoy it before the world shut down in March [2020] and I was laid off. On top of that, I was stuck in Miami because Jamaica had closed its borders due to the pandemic before I was able to return.
Randi O
xoN: Tell us about your journey after leaving Corporate America.
Randi: I do it all now! I have a podcast, I’m an on-air talent, I act, and I own a public relations company that focuses on social media engagement. It’s all from my network. When you go out and start a business, you can’t just say, “Okay I’m done with Corporate America,” and “Let me do my own thing.” If you don’t build community, if you don’t build a network it's going to be very hard to sustain.
Gabrielle: I realized in New York, there was not a lot to do for Black lesbians and queer folks. We don’t really have dedicated bars and spaces so I started doing events and it took off. I started focusing on my brand, Raw Honey. I opened a co-working space, and I was able to host an NYC Pride event in front of 100,000 people. I hit the ground running with Raw Honey. My events were all women coming to find community and come together with other lesbians and queer folks. I found my purpose in that.
Lisa-Gaye: After being laid off, I wrote out all of my passions and that’s how I came up with [my company] Shakespeare Agency. It was all of the things that I loved to do under one umbrella. The pandemic pulled that out of me. I had a very large social media following, so I pitched to hotels that I would feature them on my blog and social media. This reignited my passion for travel. I took the rest of the year to refocus my brand to focus solely on being a content creator within the travel space.
Gabrielle
xoN: What have you learned about yourself during your time as an entrepreneur?
Randi: [I learned] the importance of my network and community that I created. When I was laid off I was still keeping those relationships with people that I used to work with. So it was easy for me to transition into social media management and I didn’t have to start from scratch.
Gabrielle: The biggest thing I learned about myself was my own personal identity as a Black lesbian and how much I had assimilated into straight and corporate culture and not being myself. Now, I feel comfortable and confident being my authentic self. Now, I'm not sacrificing anything else for my career. I have a full life. I have friends. I have a social life. And when you are happy and have a full quality of life, I feel like [I] can have more longevity in my career.
Lisa-Gaye: [I'm doing] the best that I've ever done. The discipline that I’m building within myself. Nobody is saying, ‘Oh you have to be at work at this time.’ There’s no boss saying, ‘Why are you late?’ But, if I’m laying in bed at 10 a.m. then it's me saying [to myself], 'Okay, Lisa, get up, it's time for you to start working!’ That’s all on me.
xoNecole: What mistakes do you want to help people avoid when leaving Corporate America?
Randi: You have to learn about the highs and lows of entrepreneurship. You have a fast season and a slow season and I started to learn that when you're self-employed the latter season hits hard. Don't get caught up on the lows, just keep going and don't stop. I’m glad I did.
Gabrielle: I think everyone should quit their job and just figure it out for a second. You will discover so much about yourself when you take a second to just focus on you. Your skill set will always be there. You can’t be afraid of what will happen when you bet on yourself.
Lisa-Gaye: When it comes to being an influencer the field is saturated and a lot of people suffer from imposter syndrome. There is nothing wrong with being an imposter but find out how to make it yours, how to make it better. If you go to the store, you see 10 million different brands of bread! But you are choosing the brand that you like because you like that particular flavor.
So be an imposter, but be the best imposter of yourself and add your own flair, your own flavor. Make the better bread. The bread that you want.
Lisa-Gaye Shakespeare
xoNecole: Will you ever return to your 9 to 5?
Randi: I wouldn’t go back to Corporate America. But I don’t mind working under someone. A lot of people try to get into this business saying, “I can't work under anyone.” That’s not necessarily the reason to start a business because you're always going to answer to somebody. Clients, brands, there’s always someone else involved.
Gabrielle: I went back! I really needed a break and I gave myself that. But, I realized I’m a corporate girl, [and] I enjoy the work that I do. I’m good at it and I really missed that side of myself. I have different sides of me and my whole identity is not Raw Honey or my queerness. A big side of me is business and that’s why I love having my career. Now I feel like my best self.
Lisa-Gaye: I really don’t. For right now, I love working for myself. It's gratifying, it's challenging, it's exciting. It’s a big deal for me to say I own my own business. That I am my own boss, and I'm a Black woman doing it.
Let’s make things inbox official! Sign up for the xoNecole newsletter for love, wellness, career, and exclusive content delivered straight to your inbox.
Featured image courtesy of Lisa-Gaye Shakespeare
Originally published on February 6, 2023