Credit Confidence: Learning From Mistakes and Building Stronger Habits

This blog post is part of Money Mentors’ Financial Literacy Month 2025 series, Humans of Money Mentors. To find out more, visit our page Financial Literacy Month 2025.

For Week 3 of Financial Literacy Month, hosts Tim St. Vincent and Manraj Waraich are joined by longtime Money Mentors team member, Kimberly Spring, to talk about a topic that affects nearly every major financial decision we make: credit.

From youthful missteps to valuable lessons learned over time, this week’s conversation is all about understanding your credit history, spotting common pitfalls, and building habits that protect your financial future.

Why Checking Your Credit History Matters

Before diving into personal stories, Tim poses a simple question: When’s the last time you checked your credit report?

Kimberly checks hers quarterly; she reviews credit reports often while helping clients through the Orderly Payment of Debts program. Manraj checks once a year with both major credit bureaus. Tim checks his at least annually, sometimes monthly, through automatic reminders.

He explains why this matters so much:

“Your credit history is actually more important than your credit score. The score is just a number that reflects what’s in your history. If your history is wrong, your score will be wrong too.”

Tim shares a striking example: a bank error incorrectly showed a missed mortgage payment on his report. Even though his account had enough funds, the mistake dropped his credit score by 150 points and took months to correct.

The takeaway? Staying on top of your report helps you catch errors early, prevent fraud, and protect your financial standing.

We All Make Credit Mistakes, And You Can Recover

When talking about credit missteps, Kimberly admits she took on too much credit when she was young and had to step back, clean things up, and rebuild from there. Her biggest lesson: keep your credit utilization within your means.

Tim’s story is even more relatable and a great reminder that recovery is always possible.

“List every mistake you can think of, and I’ve made it,” he says with a laugh.

In his 20s, he missed payments, used cash advances to pay other cards, and fell into habits that damaged his credit far more than he realized. Years later, earning a good income at a financial institution, he was declined for a $500 credit card.

It was a wake-up call.

“I didn’t realize my past was still following me,” he explains. “How much I made didn’t matter – my credit history did.”

By stopping old habits and replacing them with healthy ones, he gradually rebuilt his credit. His message is simple: financial mistakes don’t define you. What matters is what you do next.

Top Credit Tips From the Humans of Money Mentors

To close out the conversation, each host shared their top piece of credit advice:

Manraj: Review your credit card statements

It may feel tedious, but it helps you catch errors, monitor spending, and quickly spot signs of fraud. Small charges you don’t recognize are often the first clue something is wrong.

Kimberly: Set alerts to stay ahead of your bills

On-time payments are the single biggest factor in your credit score. Even being one or two days late can hurt. Set reminders, enable notifications, or use pre-authorized payments to stay organized.

Tim: Pull your credit history regularly

Your report shows all your credit information in one place. It’s the first spot you’ll notice identity theft, lender mistakes, or outdated information. And despite the myths, checking your own report does not hurt your credit score.

Looking Ahead

Thank you for following along with this week’s Humans of Money Mentors conversation. Credit can feel complicated, but with the right knowledge, and a few good habits, it becomes a powerful tool rather than a source of stress.

For our last week of Financial Literacy Month, Tim and Manraj welcome more than one Money Mentors guest to talk about “Money Hacks” – you don’t want to miss this one!

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