Success Stories
Teodora Nicola
Teodora Nicola came to the United States from Germany in 2002 to pursue her dream of working in the field of medical science, and in 2005 took a research position with the University of Alabama School of Medicine in Birmingham, Alabama.
Upon her arrival in Birmingham, she began renting a house in a local neighborhood close to her job but really wanted to purchase a home of her own and begin "putting down roots." Teodora met with some realtors but was discouraged to find that her credit score of 580 was too low to qualify for some of the home loans in her price range.
Then she saw an advertisement in the local paper about a financial literacy program at the Birmingham Homeownership Center sponsored by Wachovia Bank, which promised to help prospective home buyers learn new financial skills and tips to help bolster their credit scores. Intrigued, she immediately signed up for the course.
Once enrolled, Teodora began to implement a number of the steps she learned to increase her credit score. First, she consolidated all of her credit card debt, which was split between two credit cards from the same lender, onto one card. Then she began researching credit cards with zero percent interest, and was able to transfer the bulk of her debt onto that card, which lowered her monthly payment and enabled her to pay off the entire amount in less time than it would have taken her with her higher-interest cards. She also made sure not to allow her credit card balances to exceed more than half of the overall credit limit (no more than $5,000 on a $10,000 card, for example), a rule she still abides by today.
In less than six months, Teodora increased her credit score from 580 to 645. With her higher score, she was able to qualify for both an FHA home loan from the federal government, as well as down payment assistance from the City of Birmingham homeownership program, and was finally able to purchase her very own home.
She credits the financial literacy course, and the skills she learned, for her new-found financial success, and says she has recommended the course over and over again to many others in similar situations. Having a low credit score, she said, kept her from being able to pursue her goals, and she doesn't want others to have to suffer the same fate. "It can be done," she said. "I'm proof!"
Desiree Matthews
Desiree Matthews is a single mother of two teenagers. Owning a home of her own had always been one of her personal goals, but divorce, bankruptcy and other circumstances continued to keep her dream out of reach.
A licensed practical nurse in the obstetrics and gynecology unit at the Medical College of Virginia, Desiree saw some information about a financial literacy program during her lunch break. The program is offered through Vision Integrated Services, a community organization based in Richmond, Virginia, in partnership with Wachovia Bank.
Desiree took it as a sign that it was "finally the right time to pursue my dream" of homeownership for herself and her children. Prior to enrolling in the financial literacy course, she had tried unsuccessfully to challenge certain items on her credit report that were keeping her score lower than it should have been. With the practical guidance from a teacher in one of her financial fitness courses, she re-submitted her challenges to the three credit bureaus in what she says was a much more succinct and effective narrative. And she got results. Almost immediately, the duplicate and erroneous items were removed from her credit report and her credit score went up 50 points "right away", from about 611 to 677.
Once her credit score was sound, the rest of the pieces of the puzzle fell into place. She found a "perfect" three-bedroom, two bathroom home in a neighborhood close to her children's school at a price she could afford. And, as luck would have it, the lender her realtor recommended for her mortgage loan was none other than one of her former teachers from the Genesis Project!
Taking a financial literacy course, she said, was one of the best things she has ever done. Learning to raise her credit score helped pave the way to the purchase of her very first home, and for that, she will be forever grateful. She even enrolled her 19-year-old daughter in a financial program for teens so she can "bypass some of the mistakes" she made.
Divorced Mother of Three
A divorced mother with three children in Florida found herself with impaired credit after losing her job and home as a result of the 2004 hurricanes. After a couple of years of moving from place to place, the family of four ended up at the Samaritan Center, a transitional housing facility.
This mother decided to take advantage of the MoneySmart financial literacy classes facilitated at the Center by SunTrust. After completing the classes, she began working with the Samaritan Center's program director to help get her credit back on track and put what she had learned into action.
After securing a steady job at a local restaurant, she began whittling away at her debt which was in collection. She paid three of these accounts in full and has set up a schedule to pay the remaining two. Prior to these actions her credit score was below 500, but after successfully accomplishing her initial steps, her score is now slightly above 600.
Realizing that she was on the right track, she met with a SunTrust banker to review the status of her credit and determine where she needs to be in the future to possibly qualify for a mortgage for her own home. Although she is disappointed that she doesn't yet qualify, she understands the steps she needs to continue taking in paying down her debt to achieve a goal of someday qualifying for a mortgage loan with the help of S.H.I.P. funds --State Housing Initiatives Partnership programs, where lenders, builders, nonprofit groups, and real estate agents collaborate to offer down payment and closing cost assistance to first-time home buyers with low incomes.
