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11/15/2018 0 Comments

2 Steps to a Good Credit Score

Everyone can have a great credit score (750+.) How long it takes depends on from where you start. It will take a person with a 450 score longer than a person with 620. And both longer compared to a 720 score. But it can be done. The journey of 1,000 miles begins with the first step. Here are 2 steps to having a great credit score.

Step One STOP putting BAD news on your credit report.
If you do nothing, your credit will clean itself up in 7 years. The Fair Credit Reporting Act (FCRA) requires that.

Once you commit to improving your credit score start paying your bills: On time; Every time; All the time. Just one late payment can be devastating to a credit score for a long time. So, no more late payments--pay your bills on time--every time.
Improve credit utilization ratios. You can do this by reducing debt and/or raising credit limits. Your credit utilization ratios significantly impact your credit score in both the Trended Data and various FICO credit scoring models; independent of your payment history.

Step One will “clean” your credit report of all negative references in a maximum 7-10 years depending on the negative tradeline type. But a clean report is only part of having a great credit score. You can take Step Two before you complete the first. And you should. Especially if you had a bankruptcy in the last decade.

Step Two Put some good news on your credit report. Gotta Do It!
Current positive tradelines on your credit report have a greater impact on improving your credit score than older negative ones. They will improve your score faster and easier than just doing Step One alone. Here are some ways to put positive tradelines on your credit report.

Lend yourself money. Then pay yourself back in a way that reports to the consumer reporting agencies. If you have either no score or a “bad” score you will find it hard to get credit. Financial services institutions are very reluctant to lend money to the “untried or unworthy.” So you must borrow from yourself with the assistance of a financial services instrument such as a (1)secured credit card or (2)self-collateralized installment loan from a credit union, bank, etc or (3)a Credit Builder account from Self Lender. The first two options require you to have money to get started. Self Lender Credit Builder account only requires you to make self-selected on-time payments. You’ll need no money upfront.
Responsibly open and use new types of credit accounts. If you want a great credit score you must proactively manage it. Having and properly using credit when necessary can improve your financial well being. Educate yourself about credit scoring. Know how to move your score on purpose when you need it. Doing so can save you money on interest rates and result in more favorable terms when you borrow.

Bonus Step Repeat Step One and Step Two as needed.

Credit Score improvement Chart

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5/15/2018 0 Comments

Asking and answering “What's your number?” question

There may come a time in a relationship, as things get more serious, the question, “what is your number?” may be asked. Of course, that question is normally only asked or answered in a serious relationship.

So assume, the relationship is serious enough to provide an answer. There is a decision to be made on how to answer. Self-inflicted shame and guilt may tempt you to be other than honest. What kind of number is acceptable for your partner?

Does your behavior contradict or affirm your goals/beliefs? Are you worried what your number says about how you behave and what you believe.

If you are going to answer, you should answer the question honestly. You should have answered it for yourself, honestly, by now. By the way, if you can’t answer honestly; you are not serious about the relationship and self-deceived.

So how should you answer the question, “What's your number?”

Get your mind out off your crotch, for minute. I’m not talking about sex but rather money.

I'm talking about your savings number. Your debt number. Your income number.

Just as it is important to know your partner’s sexual behavior, likewise for money behaviors. STDs are real. Avoid STDs, sexually transmitted debt. Know your risk factors and resources.

If you are serious, here are some numbers you need to understand about your partner. Some may be deal breakers. Maybe it’s time to be tested.

Share and understand credit reports
- It’s more than the score
  - Get a full report and review together with professional
  - Review free credit scores
DTI
- Debts to Incomes
  - How much each
    - Monthly
    - Annual
    - Pay period
Be monogamous-- one mind about money
- What are we working on as a team to achieve
- Better to have the hard discussions now before you get more vested
- You can't unscramble eggs.

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5/13/2018 0 Comments

Home Equity Recipes and Strategies

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4/3/2018 0 Comments

3 Steps to Better Cyber Security for Everyone

Unavoidable Mass Cyber identity attacks on global consumer databases mean you have to up your game. Not shopping, living, researching, networking, porning and being online is not an option.

Despite companies’ best efforts, data breaches have become an all too common occurrence. Most vulnerable are people that reuse passwords at multiple sites. A look in the mirror will reveal the prime suspect and the solution. It easy to harden your cyber defenses with just 180 minutes of focused efforts.

An Easy strategy that pays off for you again and again with less stress and more peaceful sleep. Spend 3 hours from start to finish you will have completed a one time task that will increase your identity protection everyday.

1. Required Behavior (you have got to do it; not just know it) to defend your cyber security.
2. Use technology against technology

A Password Manager is best practices. Everyone should have one. Also think of helping those digitally challenged loved ones whose identities need to be hardened. There are free and pay solutions available that meet most every need. Just Google it.
What Password Manager does in the simplest of terms
- Generates unique passwords for each online account and app
- Maintains those passwords in a digital vault in a location of your choice
- Only accessible by your master password

3. Strengthen your current passwords

Add all below to current passwords
- Symbols ,$#*(^%)?><&!
- caMel hUmP speLLing
- Length the longer the better
Resources
- https://www.consumerreports.org/digital-security/everything-you-need-to-know-about-password-managers/
- https://thescene.com/watch/wired/how-to-protect-yourself-after-a-massive-corporate-hack

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3/20/2018 0 Comments

The 7 Benefits of organizing your financial records

Here are the benefits of having organized financial records:

Less chaos and more peace of mind
Not being able to find something you need and know you have- somewhere- is frustrating.
Identity and Financial Protection
Having your records organized will allow to monitor and more quickly recover from identity theft and fraud.
Ownership Protection
Warranties, owner manuals, deeds, receipts and titles easily located.
Income Tax Support
Having your tax documents organized will get your refund quicker. Since you don’t lose time procrastinating and experiencing task avoidance syndrome that searching for a years worth of tax records at filing time. Not having organized documents is a reason that many people due a refund either file late or not all. Also, you are prepared if audited.
More Time
Time saved not looking for stuff. A British study shows a 60 year old person will spend over 3,680 hours or 153 days looking for lost items in the lifetime. Paperwork was the 4th most searched for item in list of top 20.
Good records provide facts necessary to shorten the time it takes to do almost anything. Easily resolve an issue, file insurance claims, collect government benefits, apply for a loan, prepare income tax returns or find something when you need it.
More money
Quickly provide proof of agreements made and costs paid or incurring late fees.
Emergency preparedness and resilience
In the event of an accident or emergency, good records support personal information, financial and health history and ownership. Provide medical professionals information that may be critical to your care or the care of a loved one.

Author

Mansa Musa is a homeownership counselor and homebuyer educator. He is currently the Principal at MoneySmartLife.org. He blogs and speaks on subjects of financial well-being and financial capability. Helping working class families live a sustainable MoneySmartLife through pragmatic solutions and behavior changes.

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2 Steps to a Good Credit Score

Asking and answering “What's your number?” question

Home Equity Recipes and Strategies

3 Steps to Better Cyber Security for Everyone

The 7 Benefits of organizing your financial records

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