Search

The Push for Better Credit Starts Here

Robin Derryberry

Gaining the advantage in a sellers’ market starts with a healthy credit score.

Chattanooga is experiencing a building boom. From new projects on the Southside to condos in the urban core of our downtown, there’s a diverse selection of housing options.

For some in our community, the opportunities of home ownership, renting an apartment or getting a car loan are out of reach due to low credit scores. And Chattanooga isn’t alone. According to The Motley Fool, 43 percent of credit scores are below 700 in the U.S. 

Several years ago, First Tennessee saw a need to assist in restoring financial dignity to people hit hardest during the recession, as well as those struggling to make ends meet. They opened the city’s first Hope Inside program in their Eastgate Financial Center. As part of Operation Hope, the program is designed to improve credit scores through budgeting techniques for getting the most out of a limited income. In addition, the program offers instruction on paying off debt and using credit smartly. Thanks to the success of the first program, the bank opened a second at its East 23rd Street financial center last year.

First Tennessee joined Chattanooga Neighborhood Enterprise and other nonprofit partners across the city during a recent day-long workshop focusing on credit scores for Chattanoogans. The event provided resources and information to encourage the development of personal budgets and other efforts toward financial stability. The hashtag #CHA720 was the moniker for the day and encouraged individuals to take the pledge of 720 as a goal credit score, but also encouraged a longer-range view for financial stability.

“In order to be considered for credit cards, car loans and mortgages, the magic number for a credit score is 700,” says Jeff Jackson, First Tennessee market leader. “Lenders aren’t looking for perfect credit; however, they look to see the debt to income ratio and how an individual uses credit. Having a program to assist those who’ve had a difficult financial path is a perfect fit for First Tennessee and we’re very proud of those who’ve worked with our counselors.”

Jackson adds that participants do not have to be customers of the bank. 

“Of course, we hope they’ll consider us as their banking partners, but the most important thing is to know that we’ve helped someone become financially stable. When they are successful, they become active contributing members to our local economy.  It’s just good business.”

Push For Better Credit

Jackson recommends an annual credit check for everyone, unless you're planning to make a large purchase such as a car or home. In that case, it’s smart to know your score before you begin the purchasing process. Similarly, if you're rebuilding credit, it’s wise to consider a monthly progress check. Many sites offer free credit checks and the frequency of checking your credit does not impact your overall score.

As you take steps to make important purchases, it’s important to know how much buying power you have. Being pre-qualified for a home loan makes the process much easier, and starting with a credit score of over 700 is a strong foundation for you and your family’s future.

Chattanooga’s building boom is calling. Don’t be left behind due to a low credit score. There are resources available that will provide information and encouragement from financial professionals. Operation HOPE is one such option.

Together, we’ll have a stronger, more diverse community ready for whatever the future holds.

Other Topics

In today’s race for technological leadership, few regions can claim a true first. Chattanooga just did. With EPB’s $22 million partnership with IonQ to bring a state-of-the-art quantum computer to its existing quantum network, Chattanooga has officially become America’s first…

Last spring, Abhi Sastri traveled to Chattanooga from San Francisco, where his start-up FLUIX was headquartered. He'd been named one of five global startups in the 2024 CO.LAB and gener8tor Sustainable Mobility Accelerator.  Selected among 145 applicants spanning the globe,…

In November 2024, HK Architects hosted its 25th anniversary celebration. Quite fittingly, the party was held at Wheelhouse, HK's headquarters, a perfect example of the way HK design incorporates community building and adaptive re-use planning. HK’s story is remarkable, a…

Tax time. Yes, it’s “busy season” for us accountants, but it’s also the time of year when people outside the four walls of our office building are laser focused on the importance of tax planning. If tax strategies are top of…

Tennessee Valley Federal Credit Union (TVFCU) is inviting the community to choose one People’s Choice Finalist in each regional Idea Leap Grant – the credit union’s annual program that awards funds to entrepreneurs within TVFCU’s 17 county service area. The…

The Chattanooga Area Chamber of Commerce recently hosted it's annual Economic Outlook Breakfast, featuring insights from Dr. David Altig, Executive VP at the Federal Reserve Bank of Atlanta, alongside Mayor Tim Kelly and Dr. Howard Wall, Chief Economist at UTC.…

Sign up for weekly updates.