Do you know what they're saying? You should. Sometimes credit reporting bureaus get your information
wrong and it needs to be corrected. Another reason to keep track of your credit is to prevent identity theft.
What is a fico score ®?
It is an acronym for the Fair Issac Co and their trademark. It is also a tool developed by the Fair Isaac
Co to evaluate creditworthiness used for many years by lenders and commercial enterprises who extend
credit to buyers of their products. Until very recently this information was not available to the general public.
Financial Illiteracy Is At Crisis Proportions
Many high school graduates can't balance a check book and have no clue
how a budget is supposed to work. How can we expect different results when we do not teach our kids about money - how to make it, how to save it and how to manage it?
Anyone can learn. But it takes practice and good information.
Having money doesn't make you happy but having the things that money can buy - and free time - can make
life easier and more enjoyable.
Many divorces today stem from money problems. Financial illiteracy is a contributing factor to unrealistic
expectations and this is compounded by poor preparation. But managing money is a functional necessity of
daily life - and good credit is part of that equation.
Foreclosures and bankruptcies are often rooted in divorce. One thing is for sure, money problems
don't make married life any easier - particularly starting out.
Learning about your fico score is the first step.
Many people don't know it but anyone can start repairing their credit the day they decide to do so.
It starts with a commitment to educate yourself about your credit position, what constitutes good credit and what steps you need to
take to improve your bad credit score.
Step 1 - Make the decision to fix your credit. Sometimes this is the hardest step,
because we need to replace bad habits with good ones.
Step 2 - Find out what your current fico score is.
Step 3 - Make a plan to stop spending more than you make.
Step 4 - Start paying cash more often and figure out a way to generate an additional $500 a month
income to pay down your existing bills. When you pay off those bills, start saving that money. Start a Roth IRA with a company like
Equity Trust (formerly Mid Ohio) for yourself and each of your kids.
Step 5 - Get to work.
Step 6 - Read books about money and get Robert Kiyosaki's board game, "Cash Flow" and learn how to play it.
If your score is low, this costs you money in many ways in your life. You pay a higher interest rate
on your credit cards, you pay more money for your car and appliances.
Employers and insurance companies use your credit as an evaluation
component to determine eligibility. Insurance compaines even increase your coverage cost based on low scores.
Whether this is fair or not, it is a fiscal reality.
When it comes to buying a house, it means that you can only qualify for a bad credit mortgage loan - and this is a big deal - like additional interest every month of $200-400 for the very same house compared to a person with good credit.
Credit Repair Resources.
