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
Despite launching media careers from different pathways, the two New York-based women have forged a friendship where they can discuss their ambitions and challenges.
Both women are part of xoNecole’s It Girl 100 Class of 2025, recognized in the Viral Voices category for the impact they’ve made through storytelling, creativity, and authenticity. Together, they represent what it means to build an "It Girl" brand with integrity and depth. In the spirit of SheaMoisture’s "Yes, And" ethos, Les and Kayla embody the freedom to be multi-layered as women evolving boldly into every version of themselves.
This conversation has been condensed and lightly edited for clarity
On Forging Their Own Paths
Les Alfred: Being a Jane of all trades is incredibly challenging. And one of the challenges I've faced is that the scope of what podcasters now need to do has increased so much. When I first interviewed you in 2019, I was still very new at it, but I remember being on a Skype call with you from my bedroom in Seattle. That was how I ran the show. And that was good enough. That is absolutely not good enough these days. The scope and the quality keeps increasing, but the resources that you have don't necessarily increase in order to remain competitive.
I get asked so many questions from people who want to get into podcasts and they want to get started. Most of the time, I'm just like, 'I don't have tips for you.' Because, one, I don't know what it's like to start in this current environment. Two, I know what it takes to contend and be consistent in this environment. The barrier of entry is a lot higher in terms of having something of quality than it was before.
On Balancing Ambition and Rest
Kayla Greaves: I've had to make a very clear effort to slow down and just not take on as much. Yes, you're running a business, but you're also living your life. I had one of those days yesterday. I just laid down and listened to white noise for hours because I just needed my brain to just be clear. I called a friend. I cried.
I'm starting over again today. The sun is out. It's a new day. And that's just sometimes what you have to do. You can't show up for your audience or for other people, if you can't show for yourself. I think that creativity comes from a place of living your life and having genuine experiences, and then sharing those experiences through your art.
"I had to give myself permission to let myself grow publicly in ways that I'd already done personally."
Courtesy
On Evolving Through Growth and Rebranding
Les: I didn't create Balanced Black Girl until 2018, but I started blogging and creating content and doing things under the Balanced brand in 2014. I was 24 years old at the time. Now, I'm 36. The things that were important to me, the perspective that I had and the stories I wanted to tell were entirely different. I think I had to give myself permission to let myself grow publicly in ways that I'd already done personally. The show isn't really about wellness anymore. And that shift started happening a couple of years ago.
When we started expanding into more lifestyle topics, more self-help topics [and] talking about entrepreneurship, the audience responded really well. That was when the show really started to grow and take off. And that was what got so much more engagement than the episodes back in 2020 when I was doing hour-long deep dives on gut health.
Rebranding the show was something I've been thinking about for a long time. When I was finally like, 'Oh, I need to do this,' honestly, was the 2024 presidential election. I was like, these people are about to be in here acting crazy. I do not feel safe with my business name being what it is. I don't want to be targeted for any BS. We saw what they did to the Fearless Fund.
"You have to balance your integrity with your income."
Courtesy
On Integrity Over Income
Kayla: I have many other interests aside from beauty. I'm growing and I'm changing as a person. I'm not the same person I was when I started at InStyle in 2019 before the pandemic rocked everybody's world. I don't think reviewing every single lipstick that comes out is exciting or interesting, because everybody does it now, and everybody feels like they're qualified to speak on things that they're not qualified to speak on. I'm currently in that pain point of growth.
I don't think I have always been in environments where I've been encouraged to branch out on my own ideas. I finished Ina Garten’s memoir maybe a month ago. She kept repeating this quote in her book. She said, ‘What goes in early, goes in deep.’ Now that I'm on my own and I don't have the resources of a traditional media company, which is what I have become accustomed to, sometimes it's difficult for me to be like, 'Okay, just go ahead with the thing.'
I think, Les, just the other day, you reposted somebody saying that they let go of a five-figure deal and then got double the next day because it just didn't feel aligned for them. Those are the things that happen. I have to find a balance of, 'Okay, how do I keep myself afloat?' And that may mean I may not be balling out of control just yet, but I'm okay for now. I can buy myself nice things every once in a while, but you have to balance your integrity with your income.
Les: There are just certain lines that I'm not willing to cross. Especially when I created more wellness content, one of those lines was I will not promote any sort of weight loss product. All of these GLP-1s all want to advertise on my podcast. I actually have nothing against those types of products, but I don't ever want someone to look at what I'm putting into the world and think that I'm saying that they need to feel a certain way about their bodies.
Even if the money is great, that's not for me to say, and that's not the type of message that I want to put out here. Or, I had another kind of brand deal come through that would have required me to divulge things about my personal life that I just don't really want my audience knowing about me, and bringing them along on journeys that I just find personal and I want to keep offline. I don’t want to be known for dragging my mess all over the internet for a buck.
I don't want to be known for being an influencer. I would love to be 1,000% in on my podcast, scale it, have it grow to be a media empire where I'm producing and putting out other bodies of work. For now, until that other side of the business really picks up and gets to the point where I want it to be, I kind of need to play the influencer game a little bit to live in this expensive city. But I'm gonna do it on my terms. It's a constant compromise that I'm coming to with myself.
"You can never make a big vision come to fruition if you're sitting and you're waiting for somebody else to tell you exactly what to do."
Courtesy
On Mutual Admiration and Friendship
Les: Something that I really admire about you in having known you for the past couple of years is you don't wait for a roadmap. You jump in, you roll up your sleeves, and you do it. You can never make a big vision come to fruition if you're sitting and you're waiting for somebody else to tell you exactly what to do.
Kayla: Well, first of all, I want to say thank you for saying that, because that means so much to me, and it's very affirming. That's exactly how I feel about you. I remember, even at your first live show, you're like, ‘Oh my god, I'm so stressed. I don't know what I'm doing.’ And, the shit sold out. And, you know, and now, like, you see the growth of the podcast. And you have nearly 61,000 subscribers on YouTube. I just checked recently.
I talk a lot about people that really just need to not say anything on the internet, because it's so frustrating as somebody who grew up as a traditional journalist. You want people to fact check and ask thoughtful questions and have good conversations. I've never said that about you. I've always loved your podcast. And I've sent a lot of your episodes to friends when they're going through specific things that you're talking about.
This season has been a little bit slower to me, so you've been a constant source of inspiration, and it's just been such a pleasure to see your podcast grow despite the challenges you've had. I know it's not easy, but you continue to grow and continue to push through, and I really admire that as somebody who sat and cried yesterday and listened to white noise.
And this is why I tell you all the time, you really do inspire me. I love you a lot.
Les: Oh my gosh, I love you a lot. I'm so glad that the podcast brought us together.
Tap into the full It Girl 100 Class of 2025 and meet all the women changing game this year and beyond. See the full list here.
Featured image courtesy