Credit Tips & Trends to Improve Your Life
A bimonthly newsletter full of information about credit counseling, consumer credit information and debt reduction. Subscription is free to all e-mail subscribers. To subscribe, type your e-mail address in the gray box to the left and click on submit.
You can read a sample issue below, or read the current edition on our Weblog.
Sample Issue: May/June 2001
Did You Know?
Your Credit
Family Finances
What's the Answer?
How To Contact Us
Publisher's Letter
Credit Bureaus
Trans Union Corporation Consumer Disclosure Center
P.O. Box 390
Springfield, PA 19064-0390
1-800 916-8800
Experian
P.O. Box 949
Allen, TX 75013-0949
1-888 397-3742
Equifax Credit Bureau
P.O. Box 740241
Atlanta, GA 30374-0241
1-800 685-1111
Did You Know?
The Secrets to Good Credit and Debt Reduction. A Consumer Self-Help Guide is here! The author, D. J. Williams, spent more than a dozen years in the mortgage finance business, as a senior loan officer, assistant vice president, and sales manager of several regional and national financial corporations.
Williams left the mortgage lending business after teaching thousands how to
attain, maintain and retain good credit and why having bad credit is
detrimental to your life. Why did she leave? "...for a number of reasons, one
was the issue of predatory lending. I saw the appalling trend of predatory
lenders making easy money from people who were not knowledgeable about credit
and financial issues growing very rapidly," Williams stated.
The March/April issue of the Credit Counselor discussed the rapid growth of predatory lending. Williams continues, "I had no intentions of writing a book. I wanted to write an information brochure but I starting writing and couldn't
stop. There was so much information I felt the public needed to know." The
Secrets to Good Credit and Debt Reduction, A Consumer Self-Help Guide is
concise with fifteen easy to read, short chapters with points to remember
after each chapter. It is perfect for classrooms, one on one counseling and
self-study. The book has four parts. Understanding Credit A complete
understanding of our credit system, how credit affects you, credit
scoring, consumer rights and how detrimental bad credit is to your life. Establishing a Good Credit Rating A workbook with instructions for
establishing a good credit rating, repairing a bad credit rating, dealing
effectively with credit repair organizations, collection agencies and
protecting your credit. Getting Out of Debt Explores strategies for
reducing and eliminating personal consumer debt. Credit and
Purchasing a Home Takes the stress out of the home loan process.
The book is
available through our Web site at http://www.GoodCreditNews.com or from Premier Educational Services. P.O. Box 771736, St. Louis, MO 63177, (314) 436-4002. Community organization, churches, schools and businesses
should ask about quantity discounts. The book is also available through physical bookstores and online at Amazon.com.
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First Steps To Financial Freedom
Good credit and low debt are the first steps to achieving financial freedom.
Financial freedom has a different meaning for different people. One person
will say financial freedom means being able to acquire what you want, when
you want it, and at the best price. Another will say not owing anyone is
financial freedom. Entrepreneurs will say financial freedom is working for
your self, and investors will say financial freedom is having an income
without going to work every day. Whatever meaning of financial freedom you
choose, good credit and low debt are the first steps.
Your Credit
Credit Clubs?
Why not establish Credit Clubs to help one another to solve credit problems?
Help each other to understand the credit report, write letters and follow up.
I know your credit is very personal business that you may not want to share
with strangers. So establish them within families. Older children could do
the letter writing for parents or vice versa. Establish monthly meetings to
discuss credit issues. Just a few ideas!
What's the Answer?
Q What do you think of buying a duplex instead of a single family for a first
home?
A: Buying a duplex instead of a single family for your first home purchase is
a great idea for a number of reasons. The cost of home ownership is reduced
by the rent you receive from the second unit. You get the tax benefits of a
primary residence and investment property. The challenge is that you become a
homeowner and landlord at the same time.
Q : How do I repair my credit if I am not good at writing letters?
A: Get someone you trust to write the letters for you. Some housing
counseling agencies will help with credit repair. Start a Credit Club.
Q: Can my employer get my credit report without my knowledge?
A No.
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A Little Wisdom
"No one is useless in this world who lightens the burdens of another"
Charles Dickens
"The only place you find success before work is in the dictionary"
May V. Smith
More On Credit Scoring
Did you know insurance companies look at credit scores before issuing
insurance? Your credit score will determine what type of insurance you will
get and how much you will pay for it.. This includes all types of insurance
according to an insurance agent we spoke to recently. Up until recently,
consumers were not privy to their own credit scores. These scores were only
for the people who were granting credit. This has changed. You can now get
your credit score along with an explanation of how the score was calculated.
Of course there is a charge of $12.95 and you need access to the Internet.
You can get credit scores at two web sites, www.equifax.com and
www.myfico.com. The cost is the same at both sites.
Family Finances: Buying a Home
What is the first thing to do before making the decision to purchase a home?
The first question to ask is can I pay cash for a home, or do I need to
borrow the money to pay for the house? The money borrowed to pay for a house
is called a mortgage. The best mortgages are not easy to get unless you are
prepared. First and foremost is your credit rating and what is your credit
score? Second, how much can you borrow? How much do you earn? What is the
source of those earnings? How much debt do you have? Third, how much money do
you have? Do you have the money for a down payment and closing cost or do
you qualify for some assistance? The answers to these questions will prepare
you for the most important purchase of your life.
Gross Income versus Net Income
Gross income is your salary before any
deductions. Your W-2 shows gross income. Net income is your salary after
deductions, i.e., your take home pay. Lenders use gross income to qualify you
for a mortgage. For example, your annual salary is $40,000; this salary
divided by 12 will give you a gross monthly income of $3333.33. The lender
will determine your house payment and the amount of debt you can owe using
this figure. This figure is much higher than your net income or your take
home pay. Look at your take home pay and determine the house payment you can
realistically pay along with your other bills. I am aware that affordable
housing is a major issue in this country. The traditional percentage allowed
for a house payment is 29% of gross monthly income. Many are spending as much
as 35% of their gross income on a house payment. For more information on this topic read the excerpt from the chapter on A Stress-Free Loan Process in The Secrets to Good Credit and Debt Reduction; A Consumer Self-Help Guide.
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