Month: October 2022

I served as the “family accountant” for our extended family’s vacation and as a result, amassed a substantial credit card bill. I paid it off before it was due, but by virtue of using that much credit, it has negatively impacted my credit score since that time. My score also took a hit when I paid off my car loan and mortgage, so instead of being rewarded for paying off my loans, my score was dinged as I had no “installment” credit.

To me, both these situations are signs of good credit — charging things but paying them off on time and not taking out new loans after you have paid them off. But in the complex credit report algorithm, they count against you — in one case because I used credit and in the other case because I did not.

It’s a reminder to use care with what you measure. Giving credence to things in the abstract sometimes loses relevance when it is applied in real scenarios. Factors that receive favorable ratings often drive behavior — and it’s important to ensure that you are influencing the actions you actually want to occur. Paying your bill on time and not having loans sounds like good creditworthiness to me!

I just read an eerie thread of comments by women who had been verbally abused but did not realize the shaming, yelling, and insults were anything but normal — until they got out of the relationship and were in a healthy one. Only then did the women come to understand that they would not be berated for making a simple mistake or spilling something; that being out of milk was not cause for an uproar, or that civil disagreements were possible.

It’s a domestic example but reminded me again of the need for everyone to have an external context to truly understand the landscape under which they are living or working. We become so engaged in our own world that it seems perfectly natural to us but undoubtedly there are others living a different way. We gain understanding, empathy, and new ideas when we pull back the curtain. This can happen through travel, education, expanding your network, exposure to different people or fields, or in a host of other ways. But it’s not going to happen if we stay in our own bubble.

Think about the important things in your life — metrics at work, views you hold, traditions you cherish — and see if you can’t find an alternative way of looking at them. You may opt to keep your same behaviors, but having something to benchmark against gives you a much clearer perspective of your reality.