When I finally joined the 800 credit score club in 2020, I felt proud. As a first gen Latina, who grew up in a household where money wasn’t discussed — but where having your credit card declined was clearly “no bueno” — reaching a score of 813 felt like a big deal. Despite not growing up with financial literacy, I made it. I was “good with money.”
That’s why, as a money and self-care coach, admitting that I intentionally dropped my credit score into the 700s feels a little nerve-wracking.
But I did it — and I stand by that decision. Because the version of me who thought an 800 credit score meant financial freedom didn’t understand what it actually means to be financially secure.
This version of me does.
Cash flow over credit score
After saving for five years, I finally bought a home for the first time at the age of 38. In addition to the down payment and closing costs, I had also set aside $15,000 in a high-yield savings account for new furniture. That money was earmarked, and I was proud of how financially prepared I had been going into homeownership.
But instead of draining the account to buy furniture outright, I encouraged my husband to open a 0 percent APR credit card and added myself as an authorized user. I knew this would raise our credit utilization ratio and lower my credit score — but I also knew that I didn’t need an 800+ score anymore.
I wasn’t planning to apply for any new loans and the mortgage was already secured. I also knew that my cash in the bank could keep earning interest, and we could even earn more by taking advantage of a welcome bonus. The $300 welcome bonus and the satisfaction of knowing my money was making me money while I slept was more important to me than protecting my credit score.
Bankrate’s take:
Taking on new debt before your mortgage is finalized can cause problems when it comes time to close. You may not qualify for the same interest rates you were previously pre-approved for. And if you were on the margins of qualifying overall, you may not be able to close at all.
The business card that backfired
Around the same time, I opened a 0 percent APR business credit card to cover the cost of a $12,000 Mastermind business coaching program. My plan was to do what I’d done for other big costs before: charge the full amount upfront and keep my business cash sitting in my savings account.
But this time, I was only approved for a $5,000 limit, a far smaller limit than the over $12,000 ones I received in the past. That completely threw off my plan. I had to enroll in the payment plan instead, which now charges me $2,000 monthly — money that would have been earning interest right up until the promotional period was up if all had gone as intended. Between that, the new mortgage and the hard inquiries from both credit applications, my credit score took a noticeable hit. And not only that, it hadn’t even been able to afford me the credit line I’d originally wanted.
It stung — not just the drop in points, but the hit to my ego. I was used to being seen as someone who mastered their finances. But I reminded myself: the dip was temporary. While my score dropped, my savings kept growing. That $15,000 was earning passive income in a high-yield savings account, and that, to me, was a more powerful sign of financial security than any number on a credit report.
Bankrate insight
Keeping your cash in high-yield savings rather than putting it down on a large expense can make sense if you’re able to leverage a 0 percent APR credit card. It allows your money to earn interest over the length of the promotional offer — growth that wouldn’t have been realized if you spent it right away. But to get the most out of this approach, you’ll need to follow through and pay off the balance before the standard interest rate kicks in.
Know what really impacts your score
Even though my overall utilization was just 14 percent — well below the recommended 30 percent — the high usage on two individual cards made a big impact. The credit card we used for furniture had an 82 percent utilization ratio, and the business card was at 40 percent from paying the monthly installment before paying it off.
Still, my payment history was flawless, all my accounts were in good standing and my overall credit profile remained strong. My score dropped to 730, which is still considered a good credit score.
And since I’ve already set aside the money to pay off both balances in full before the 0 percent APR ends, I know my credit score will rebound. This is just a dip, not a downfall.
Let strategy drive, not ego
I’d be lying if I said the dip didn’t hurt. As a marginalized money coach, I’ve carried the weight of the unspoken expectation that I should be the example — to have the highest credit score, the lowest debt and the best budgeting habits.
But I’ve learned that financial confidence isn’t rooted in perfection, it’s rooted in intention.
I made a conscious choice to prioritize flexibility, protect my cash flow and stay focused on long-term planning. A temporary dip in my credit score doesn’t matter as much to me as building real net worth — and that’s my real priority.
Redefining what it means to be “good with money”
This strategy isn’t for everyone. If I had been in the market for another loan at a low rate or didn’t have savings in place, I wouldn’t have made this move. But I had a strong emergency fund. I was still contributing to retirement. I had the cash set aside to pay off every card before interest kicked in. I was using every tool in my financial toolbox to help grow my net worth while protecting my financial well-being, even at the expense of my credit score.
That’s financial security.
So, yes, some may judge this choice — but I don’t. Because I know the full picture: the systems I’ve built, the habits I’ve sustained and the peace I’ve cultivated.
Sometimes being “good with money” isn’t about chasing the perfect credit score. It’s about knowing when you don’t need it — and having the confidence to act accordingly.
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