Introduction on the importance of maintaining good credit and fiscal responsibility, particularly for Making Sweet Lemonade-rs. One may ask, why throw in an article on credit in the middle of a soft-touch blog registry? Please note, this blog is about the realities of empowerment, more than anything. As the author of Making Sweet Lemonade, I can tell you that when adults (18+) find themselves on their own, without the support of a “traditional” family, or no family, their financial lives can become quite vulnerable.
Entering a New Year, many attempt to set New Year’s resolutions. Eighty percent of those resolutions will include some type of weight loss program. Only 20% will see the results of those goals. Even fewer set financial goals, and many don’t stick with them. Some are in the spring of their lives: going to college, in preparation for a spring graduation, or newlyweds anticipating a new family. Others may be in the summer of their lives with high rising careers and plenty of cash flow. Now many baby-boomers are in the fall of their lives preparing for retirement and empty nesting. Perhaps you are are approaching the winter season, where dollars really need to stretch. Regardless of the season, a personal credit review is always in order. Once you are able to assess your current credit health situation, set a plan and stick to it. Here are some basic premises toremind you of where to start with your credit health check up.
What is Credit?
Money available through borrowing. It gives us the ability to purchase goods and services now and pay for
them later. Credit worthiness reflects the lender’s view of your ability to make payments. The most common
location to attain credit is through financial institutions with credit cards or loans.
What is a Credit History?
A record of how you manage your credit accounts, including credit card or store charge card accounts and
loans. It affects your ability to secure credit in the future, to be approved for loans, even to secure apartments
and jobs! Your credit history is reflected on a credit report, which is like a “financial report card” that lenders
can view when determining whether you are a good candidate for a loan.
Why is it important?
Your credit history reflected on your credit report is the most telling information that lenders, landlords and
employers have when they are determining whether you are likely to pay debts and be responsible with money.
Get your Credit Report for Free! The Fair Credit Reporting Act enables you to get these credit reports for free!
Free reports are also issued for other reasons, If you are unemployed or receiving public assistance, when you
apply for a job or for credit.
bureaus every year. The three credit reporting agencies are:
Experian: (888) 397-3742; http://www.experian.com
Equifax: (800) 685-1111; http://www.equifax.com
Trans Union: (800) 916-8800; http://www.tuc.com
The best ways to gain and maintain good credit: Attain a copy of your credit report from all three credit
Always check Credit Report for errors. There are only three credit reporting agencies in the country
responsible for all credit bearing accounts. Not only are they bound to make mistakes; they are bound to miss errors that indicate identity theft.
Manage credit card accounts by using only one or two credit card accounts and lock up the rest. Don’t close unused accounts. Unused credit limits support your credit score.
Always pay more than the minimum balance on credit cards each month. Credit card companies often mislead customers to believe that they only need to pay the monthly minimum on their cards. If you do, you might be in good standing with them, but at high interest rates, it will take you decades to pay off your debt.
Pat J. Schulz is an Business Consultant, Professional Trainer & Owner of ENHEART Publishing - www.enheartpublishing.com To schedule workshops for your organization contact: 704 649 4313 for Blue Ridge Community Action, a partner of the N.C. Community Action Association
P. Schulz currently facilitates Economic Literacy Classes
With such a volitile economy, jobs are here today and gone tomorrow. Irrespective of age, many have found themselves going home to mother and/or father for a time, in order to regroup. For every child knows, any loving parent would not stand to allow their offspring suffering or doing without (relatively speaking, of course). However, for the cast of kindred brothers and sisters I allude to in MSL, the “safety net” of family respid, is not a likely solution. This article reinforces accountability and the necessity of self-reliance.
———-”The borrower is servant to the lender.” Prov. 22:7 ————-
With such a volitile economy, jobs are here today and gone tomorrow. Irrespective of age, many have found themselves going home to mother and/or father for a time, in order to regroup. For every child knows, any loving parent would not stand to allow their offspring suffering or doing without (relatively speaking, of course). However, for the cast of kindred brothers and sisters I allude to in MSL, the “safety net” of family respid, is not a likely solution. This article reinforces accountability and the necessity of self-reliance.
