It’s time for that 4th “C” of Credit. You know. The one that’s on everyone’s mind?
CHARACTER. Yep, CREDIT SCORE.
I know you thought we’d never get to it, but...as you can see, we got you covered in our latest podcast episode.
As summer approaches and we close out the getting “Credit-Ready” chapter, most of us probably need a little “repair” in that area, or at least a quick glance to make sure we’re putting our best “credit” face forward.
Colleague, Larry Miles, who I also call “Mr. Credit Repair,” is making it EASIER to face and even get started right at home.
And of course because we’re both fans of the FREE method with anything new, you’ll hear some options there as well.
Here’s The Money Doctor® “street” version of questions asked and then answered in the podcast.
1 “WHERE CAN I FIND MY CREDIT SCORE?”
Larry shocks us saying score isn’t what to focus on at first. He explains how the “what’s behind the score” should be our first focus. It’s what’s on the report and the accuracy of what it’s saying, that drives the score. When he said that, I thought “DUH” and literally pictured a cart pulling a horse, i.e. totally backwards!
2 “HOW DO I GET MY CREDIT REPORT?”
The law entitles you to a FREE report each year and you can request that at www.annualcreditreport.com. POST Pandemic There are actually some ways to get it FREE every week, Getting the report, then reading the report as he says, “line by line,” comes in.
3 “HOW DOES CREDIT REPAIR HELP MY FINANCES?”
Errors on your credit report lower the credit scores used by lenders determine the price they charge you for money i.e. interest.
When you pay less interest you save more or pay off debts. Paying off debts increases your ability to get new loans, probably at better interest rates because your credit scores are higher.
Now, let’s repeat that in the context of the 4 Cs
When you get the junk off your credit report, that will more clearly show your actual capacity to take on more loans.
With a clean credit report, lenders will charge you less for the money you borrow (interest). When you pay less interest for things, you can save more money (capital).
And of course the money that builds up in savings can also be used as collateral especially if you’re starting out or re-building your credit. As a matter of fact, your money (capital) along with other things you have of value, just may get you the loan amount you need.
That was a lot I know, but of course I’ve already posted a blog or two on the 3 Cs above (our specialty) - and also give you a free preview of our “Credit-Ready in 7 Days Home-Study Course where we help you generate the reports you can give to the lenders.
Are You DIY or DFY?
DIY means DO-IT-YOURSELF, which means you want to do this entire process yourself.
You can! It’s totally legal and totally free. Just be sure and stay on top of the correspondence back and forth with the bureaus or you’ll spin your wheels! If you’re not sure about that part, then READ ON.
DFY just means Done-For-You and I can tell you that’s the approach that I took.
I’d always done it in my early credit years, so it wasn’t that I didn’t think I could do it. I was just too freaking scared to face my report!!!
If you’ve heard my story from Podcast Episode 14, I’d been out of the credit system for over seven years and living 100% on a cash basis - with money in the bank and then some. So I’d just lost my nerve.
It was so refreshing to make a phone call and just pay someone to pull the report tell me what was on it and they take the next step actions from there.
My only regret was NOT DOING IT SOONER!
Unasked (but answered) question about taxes...
It always amazes me how actual full-time business people come to me saying they need a system for reports, but almost bragging also saying “oh I did my taxes already,” like that’s a good thing!
Actually, it’s a RISKY thing, because reports should be the backup substantiating the numbers on the tax return. The tax return is also additional report, because that’s really what it is - just an ANNUAL one. Too often the focus is “refunds and write offs” instead of a more reality-based filing that reflect year-round reporting.
So, as a CPA, I have to include that plug for how this topic helps keep you out of tax trouble as well, not just impress lenders.
If you need a referral for tax planning or any other specialist, including Larry click here or see other next steps below.
Your MoneyRx Action Steps
1. If you know you have issues with some of what you read here, Book a Strategy Session so we can put together a custom plan for you. The up front "Money Milestone" session fee ($75) applies to any future done-for-you services.
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Thanks for dropping by! 😀
Make it a great day (especially for YOUR MONEY), and I'll see you in the next post!