Building Credit as a New Adult

Congratulations high school seniors…many of you may now be tried as an adult.  If you have reached the age of 18 (or older), you also have the opportunity to start building your credit. Why is credit important? Because I say so…and because creditors and lenders say so too.  Your credit determines your purchasing power to buy items like a car, a student loan, and maybe a house one day.  Credit also may affect your ability to get or keep a job. What do lenders look at? Your credit rating should how well you repay your debts—whether you are a good credit risk or a deadbeat.  When lenders are deciding whether to extend credit, they look at how well you pay your bills, your credit limit versus your high balance (as on a credit card), and your income. Build your credit from your budget up.   Make a budget. Stick to it. Pay your bills on time every time – from rent to credit card bills and all other bills, make sure you have paid by the due date.  By having a budget, you should know what bills are coming and when.  By sticking to your budget, you should be able to […] Read More

Just Starting Out? Build Credit from Your Budget

Fresh out of high school and on your own?  Mom is not going to cut up your meat any more, and she might not be in charge of your finances either.  That is your job.  Time to build your credit from your budget up. Credit is important. Your credit determines your purchasing power to buy items like a car, a student loan, and maybe a house one day.  Credit also may affect your ability to get or keep a job.  Now is the time to start building your credit history so that lenders and employers have something to look at when they are deciding whether or not to give you a loan (and at what interest rate) and whether or not to hire you or give you a promotion. Build your credit from your budget up.  Pay your bills on time every time – from rent to credit card bills and all other bills, make sure you have paid by the due date.  The Federal Trade Commission has a free online budget calculator to help you balance your monthly expenses with your monthly income, go to http://www.consumer.ftc.gov/articles/pdf-1020-make-budget-worksheet.pdf. Be a credit to yourself!     Read More

Evergreen & Bankruptcy

The ultimate goal of Bankruptcy is to be as evergreen as a plastic Christmas tree, but in the meantime, you have to endure a series of hard winters on spending. Bankruptcy is not designed for a deciduous lifestyle.  You cannot squander your money annually and cry “Bankruptcy!” like it is a season of the year.  Bankruptcy should be a sign of recovery, but it starts at the stump of your credit. You can only file Bankruptcy every so many years, and in the meantime, you are supposed to use the timber of your fall to build new credit.  Going green is a nice notion, but it is a gradual process.  Bankruptcy keeps creditors off your greenbacks, giving you a chance to recover your portfoliage, adding growth rings to your trunk to support your expenditure branches. Bankruptcy stops foreclosure in most cases, but it is not an action to be taken lightly because you have to come back from a hard freeze on spending. Read More